Tag: UPS

DHL Oman: ‘We want to be everybody’s first choice’

As DHL completes 30 years, its Country Operations Manager, Oman, Geoff Walsh explains to OER’s Visvas Paul D Karra the reasons that have made DHL a trusted name for its customers

Can you shed light on some of DHL’s pioneering services?
I think the biggest thing we have pioneered is the use of ease. We are present all over Oman in 16 locations, which includes all the major towns. One of the biggest initiatives in the Middle East is our Import Express, so you can have an account here and request for a collection from Timbuktu or from Sydney. We take care of all the paper work and ensure that you get your shipment. You can have one user account and you can do export, import and even door-to-door freight service.

Since the past couple of years, we are also doing the time definite pre-nine, pre-12. If you want a shipment to be sent to the UAE by 9 am the next day, you pay a small premium and we guarantee to deliver it before 9 am otherwise you get your premium back. So, it gives a scale of prices and scale of services.

How do you view your competitors in Oman?
There are the usual global competitors like Fedex, TNT, UPS, etc, and then the local ones like Aramex, besides other small players. Our advantage lies in our knowledge of Middle East customers because we are here since the last 30 years and that stands us in very good stead. We have to give the best service and best performance consistently. I think that is what separates us. All our competitors get business but if a customer has got something important to be delivered and needs to guarantee it reaches there, they will come to us.

DHL’s logistics chain has acquired a global reputation. What accounts for this?
We have 250 trailers moving around the Middle East and these go into Africa and Europe. Sometimes 10-15 of them pull automotive parts. And then, we charter an aircraft if it is needed. We are also the only company in the Middle East which has an airline of its own. We have a plane based in Bahrain.

And then we have our couriers, they are not just delivery or collection boys. They do the scanning, they know the importance of the shipment and they get to know the customers because of the training we give them. It is a whole package oriented towards the ‘first choice’ motto.

What is your opinion about Oman as a market?
Oman is diversifying from oil to non-oil revenues. This is attracting a lot of investments and the country is growing. We have been a significant cog in the growth. The big multinational companies, like banks and other manufacturers who come into Oman, need infrastructure and DHL can help and support them to get it. Being here and supporting the growth is important. It is what I said about providing solutions. We want to be everywhere and everything for everybody. We want to be everybody’s first choice.

What are your expansion plans in the Sultanate of Oman?
Our investment in Oman is increasing. At the moment I am drawing up the budget plan and I know that what I am going to invest now is more than what has been invested in the last 10 years.

We are going to have a brand new country office in Seeb in the final quarter of 2009. We are looking for a larger warehouse facility in Ghala area. On other locations, we have Express centres where people can just walk into, like a shop. This is what I call the retail strategy. We want it to be easy to use DHL, as easy as walking into a supermarket or a store to buy milk. To be a customer’s first choice, we have to be easy to use, we need to be reliable, and have quality and consistency.

How secure is a parcel sent by DHL?
We do everything to make sure that every shipment is secure. Every shipment is treated exactly the same way. Similarly, all our offices and express centres have CCTVs and all our courier boys are vetted and trained to follow strict security procedures. Therefore, our shipments are as safe as you carry your own luggage on a holiday.

Has there been any major inciden

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UPS plots bid for TNT

United Parcel Service (UPS) is plotting a EUR 10bn (GB 7.8bn) bid for Dutch rival TNT, a move that could herald the long-awaited consolidation in the global express-delivery business.

UPS has made an informal approach to TNT, its European rival and one of Royal Mail’s biggest competitors in Britain. Despite initial reluctance from TNT, early-stage talks about a potential tie-up have been held in recent days, The Sunday Telegraph has learned.

Soaring fuel costs have hit global courier businesses hard. The share prices of the main firms – UPS and FedEx in American and TNT and DHL in Europe – have suffered in recent months, making consolidation both cheaper and compelling.

UPS, which has a market value of USD 66.24bn and dominates the American delivery market with rival FedEx, has appointed investment bank Morgan Stanley as adviser.

The American company has also brought in strategy consultants AT Kearney to carry out a detailed report on a potential deal with TNT.

Insiders said that AT Kearney has now finished its report and delivered to Morgan Stanley, whose bankers are now spearheading discussions with TNT.

Both UPS and FedEx have eyed TNT’s parcel business for several years but are said to have been put off bidding for the firm because of its slower-growing postal division.

Sources said that UPS’ plans to buy TNT could include selling its postal division, possibly to a private equity buyer. It may instead decide to team up with a buyout firm. It is thought CVC, the European buyout giant, could be interested because it already owns stakes in Belgium postal operator De Post-La Post and Post Danmark, a Danish postal company.

A deal with TNT would deliver to UPS substantial cost savings as well as a vast European reach – something it has been trying to slowly build up in recent years. The company recently forged closer ties to TNT’s main rival, DHL, through its agreement to ferry the Deutsche Post unit’s packages between North American cities.

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Brown urges McCain to use clout to save Wilmington jobs

U.S. Sen. Sherrod Brown, D-Ohio, urged Republican presidential candidate John McCain to press DHL and its German owner, Deutsche Post, to preserve jobs that could be lost if DHL hires United Parcel Service for its U.S. cargo airlift work.

McCain, the Arizona senator, scheduled a campaign stop in Wilmington today (Aug. 7), to meet privately with community activists trying to save at least 8,000 jobs at DHL’s Wilmington air freight hub. McCain was also to visit Lima.

The Plain Dealer of Cleveland reported on Wednesday that Washington lobbyist Rick Davis, now McCain’s top campaign adviser, made hundreds of thousands of dollars in fees lobbying Congress to allow the 2003 deal in which Deutsche Post bought Airborne Express to form DHL’s U.S. business. The Washington Post had a similar report in June.

Brown, noting the Cleveland news report, publicly urged McCain on Wednesday to send Davis to Germany so that Davis could use his contacts to lobby for preserving the Wilmington jobs.

In 2003, some in Congress had expressed concern about foreign ownership of a U.S. cargo transport company, before the DHL purchase of Airborne Express was allowed.

Joseph Teuchert, a Wilmington-based pilot for ASTAR Air Cargo that is a contract delivery carrier for DHL in the United States, said he expects to be in the meeting Thursday with McCain.

Wilmington Mayor David Raizk said he and others trying to preserve the Wilmington jobs met privately with Obama just before the Illinois senator’s public appearance July 11 at Stivers School for the Arts in Dayton.

McCain campaigned Wednesday in Jackson, Ohio. He and Democratic opponent Barack Obama have been campaigning across Ohio and Michigan in recent weeks.

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Lawmakers seek federal review of UPS-DHL proposal

Two U.S. senators have asked the Justice Department and the Federal Trade Commission to review a proposal by UPS Inc. to carry some air packages for DHL. But UPS says the agencies don’t have authority over the vendor relationship.

Sen. Herb Kohl, D-Wisc., and Sen. Orrin Hatch, R-Utah, said in a letter dated Friday (1st of August) to Thomas Barnett, assistant attorney general in charge of the Justice Department’s antitrust division, and William Kovacic, chairman of the Federal Trade Commission, that the deal being worked out raises competition concerns.

“If consummated, DHL will become reliant for air transportation on one of its two major competitors,” the letter states. “This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services.”

UPS spokesman Norman Black said that the arrangement the Atlanta-based company is working out with DHL is similar to one it has been operating under for several years with the United States Postal Service.

Black said UPS has not received any communications from the Justice Department or the FTC about the proposed deal. He said lawyers for UPS and DHL continue to work on finalizing a contract, which they expect to complete by the end of the year.

Justice Department spokeswoman Gina Talamona said the agency has seen media reports about the proposal, but she declined to comment further.

“Generally speaking, the antitrust division can look at matters that affect competition,” Talamona said.

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Deutsche stays in black despite further GBP 1.8bn

Deutsche Bank has written off a further EUR 2.3bn (GBP 1.8bn) to take its total credit crunch bill to more than GBP 5bn – one of the largest reported by any European bank.

Germany’s biggest bank was forced to admit to further losses caused by investments in mortgage-backed securities, commercial property loans and the monoline insurers that support bond issuers.

The write-downs drove its second-quarter earnings down to EUR 642m compared with EUR 1.8bn in the same period last year. There was some relief that the bank had managed to stay in the black after reporting a first-quarter loss.

This helped prompt speculation that Deutsche may be interested in bidding for Postbank, the retail banking division of Deutsche Post.

The losses also prompted discussions about whether Deutsche is too reliant on investment banking, which contributes about a third of its pre-tax profit.

The pain felt by Deutsche from the seizing up of financial markets has not been as great as that reported by UBS, which has recorded about GBP 19bn of write-downs. Wall Street firms have been hit harder. Merrill Lynch is trying to shore up a balance sheet dented by GBP 26bn of write-downs.

Deutsche may manage to avoid raising capital as the bank’s tier one capital ratio, used to measures its financial strength, is 9.3 pct. Its target is 8-9 pct.

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