Tag: Russia

DHL continues strong growth performance in Russia

DHL Express Russia continues its strong performance with YTD revenue growth nearly 50% in 2006, with shipment volumes increasing by 30% in the same period.

Our Russia business continues to go from strength to strength; our strategic initiatives are successfully supporting the continued expansion of our business and increasing our market leading position said Mark Jordan, Commercial Manager DHL Express Russia.

DHL Russia reports an expected increase in shipment volumes of more than 30% in 2006, compared to the same period in 2005 and this continues the high growth trend of its business.

DHL Russia continues to expand its domestic road network, connecting key economic and fast growing centres of the country, to provide customers with fast and reliable, door-to-door delivery and supply chain solutions. This also includes direct road linkages with major European countries and cities.

Six new Service Points have been opened in 2006, in Moscow, St. Petersburg and Yekaterinburg. In 2007 we plan to open over 20 new Service Points in Russia’s largest cities, and further invest in excess of EUR 15 million into developing our Service Point network over the next 3 years.

The DHL Express business has shown double-digit growth both in domestic and international business and DHL in Russia expects this strong growth performance to continue.

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Government considers proposals to modernize infrastructure of postal service

The following decisions were adopted on issues considered at a November 16, 2006 meeting of the Government of the Russian Federation:

The Government took note of a report of the Minister of Communications and Information Technology on the proposals to modernize the infrastructure of the postal service of the Russian Federation for the period of 2012.

The Ministry of Communications and Information Technology in conjunction with the Ministry of Economic Development and Trade, Ministry of Finance and other interested federal executive bodies is to work out a draft plan of measures to update the infrastructure of the postal service of the Russian Federation during the period till 2012 with the indication of both the sources and amounts of their funding, giving special attention to:

· reconstruction, repair and enlargement of the network of post offices;

· setting up a network of automated sorting centers for the handling of mailing items;

· development of the system of electronic money transfers and clearing settlements on the basis of the post offices network, and

· renewal of the vehicle fleet.

The draft measures plan must be submitted to the Government before June 1, 2007.

The Government also directed the Communications and Information Technology and Finance Ministries in conjunction with the Bank of Russia to consider the possibility of the use by Russian lending organizations of the network of post offices to carry out electronic money transfers and clearing settlements.

Relevant proposals must be submitted to the Government before March 15, 2007, the Government said.

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China, Russia and Germany consider logistics JV

Russian Railways, Deutsche Bahn and China’s Ministry of Railways signed a Memorandum on Co-operation in Beijing on November 20, 2006, in respect of greater co-operation on Eurasian railway transportation.

The goal of the three parties is to increase rail freight between China and Europe via Russia, and to develop competitive market services in rail transport and logistics.

The parties agreed to establish a joint co-ordinating committee, chaired by Liu Zhijun, China’s Minister of Railways; Hans Mehdorn, CEO of Deutsche Bahn; and Vladimir Yakunin, president of Russian Railways.

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Finland Post Logistics to start Moscow Operations ahead of time

Finland Post’s first logistics centre will start operating in Moscow in February 2007, earlier than planned. The new logistics centre and Russia’s strong economic growth will enable Finland Post Logistics’ development and expansion in western Russia in the next few years.

Used by Finland Post Logistics, the logistics centre has an area of some 20,000 square metres. It will provide contract logistics services, including finishing services such as preparing goods for delivery in Russia, service warehousing and delivery services, as well as transport and forwarding services in the growing Russian market. The centre has paid special attention to security requested by customers, which meets the highest international standards.

The first customers in need of contract logistics services include international electronics and IT corporations, such as Canon and Brightpoint, but the centre also expects Finnish grocery companies and specialty goods companies to number among its customers.

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GeoPost subsidiary Armadillo expands Russian network

The Russian parcels and freight logistics group Armadillo, a GeoPost subsidiary, said it has opened six new branches in key regions over the first half of 2006 to further expand its network.

Three branches are located in Siberia (Barnaul, Krasnojarsk, Osmk), one in the Volga region (Saratov), and two branches in the Far East (Charabarovsk and Wladiwostok). The openings give the company a total of 22 branches throughout all the regions of the Russian Federation, from the North-West to the Far East, Armadillo said in a statement.

Each new branch incorporates an office and operating terminal, including handling equipment and IT technology linking all branches. Each branch covers about 500 sqm and has capacity to handle up to 2,000 parcels per day.

“In the next five years, the Russian logistics market will experience a tremendous boom thanks to the biggest Western retailers,” explained Sergey Kruglov, director general of the Armadillo Group. “After opening branches in Moscow and St. Petersburg, they are capturing the market in further regions of Russia where they require the same quality they guarantee to their customers in Moscow, Europe and all over the world. Russian companies will certainly try to capture the regional market where the demand for transportation services is very high,” he added.

The Armadillo Group, which is jointly owned by GeoPost and its Turkish partner, Yurtici Kargo, offers courier, express, parcel and freight transportation within Russia and internationally, including the Bizpak just-in-time delivery service. It plans to expand its network further later this year.

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