DHL in talks with India Post
DHL is talking to the state-owned India Post about a strategic partnership with the Indian postal system.
According to The Economic Times of India any deal would give DHL access to India Post’s distribution network across the sub-continent, with nearly 15,000 post offices to give DHL a ‘last mile’ delivery capability outside its current urban footprint. The reciprocal benefit for India Post will be DHL’s superior technical expertise in handling logistics operations.
The final structure of the relationship, though, is yet to be finalised. “The idea is to identify some common synergies and work towards creating a relationship, which might take shape in the form of either a strategic partnership, a JV or a memorandum of understanding,” commented an official from the Department of Post (DoP).
According to the transport industry analysts TI, many of the major logistics integrators have their sights set on the fast growing Indian market, though its regulatory regime and relative immaturity presents risks. The Indian government is looking at regulating all courier and express operators and imposing a double-tax on them to fund the Universal Service Obligation (USO) of the Department of Posts. Such a move would be disastrous for the industry (as well as the Indian economy), says TI, though it thinks it unlikely in the light of international opposition that these plans will come to anything.
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