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DHL Supply Chain to invest EUR 500 million in India

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DHL Supply Chain to invest EUR 500 million in India. Image: DHL
DHL Supply Chain to invest EUR 500 million in India. Image: DHL
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DHL Supply Chain, the global market leader for contract logistics solutions, announced an investment of EUR 500 million in India over the next five years to significantly grow its warehousing capacity, workforce and sustainability initiatives in the country. With this investment, DHL will own and operate wholly-owned large multi-client sites in India, adding twelve million square feet of warehousing space to the Group’s existing portfolio.

The increased warehousing capacity is targeted to effectively cater to growing sectors such as e-commerce, retail, consumer, life sciences, technology, engineering and manufacturing as well as automotive. These warehouses will be enabled with accelerated digital technology solutions including Assisted Picking Robots, Indoor Robotic Transport, Intelligent Process Automation, Wearable Devices, Voice Picking, Inventory Management Robots and Algorithmic Optimizations.

“Despite the current, economic and geopolitical uncertainties in the world, we see enormous growth potential in the Asia Pacific region, with India making a significant contribution. As a dynamic, stable and fast-growing economy, the Indian nation plays a key role for the global economy. Its investment-friendly and entrepreneurial environment makes India a preferred place for Deutsche Post DHL Group to even accelerate its investments. With a rich pool full of highly qualified young talents and innovative digital entrepreneurs India is a favourit hub for our global contract logistics business in DHL Supply Chain and one of our priority markets,” said Oscar de Bok, CEO, DHL Supply Chain.

Investing in infrastructure for current and future customers

DHL Supply Chain India will add twelve million square feet of capacity in wholly-owned DHL multi-client sites in key metro cities such as Bangalore, Chennai, Kolkata, Mumbai, National Capital Region (NCR) and Pune. These cities are among the top contributors to India’s overall Gross Domestic Product (GDP).   Furthermore, multi-client sites are being built in the fast-growing state capitals and tier 2 cities such as Ambala, Baddi, Cochin, Coimbatore, Guwahati, Sanand, Hyderabad, Jaipur, Indore, Lucknow, Bhubaneshwar, Hosur, and Visakhapatnam.

DHL Supply Chain India will also open two new Business Support Centers (BSC) in Bangalore and Pune within the next 12-18 months to support customer demand. Currently, the company runs three Business Support Centers (BSC) at Mumbai, Gurgaon and Chennai. These BSCs provide 24×7 value-added services including domestic and international Transport Control Towers, Business Analytics to support decision-making, Freight Bill Audit Payment (FBAP), Order to Cash (O2C),  LLP Control Towers and similar support services to its customers in India and across the globe.

Creating employment opportunities

To support its strategic expansion plans in the country, the company plans to augment its workforce by doubling the size to 25,000 employees by 2025. Investment in Skill Development and Resourcing Centers is being undertaken to induct and train employees with certification programs to prepare them for work processes changes brought about by rapid transformations and digitalization in the industry. The first Resourcing Center has been opened in Bangalore with more to follow in Mumbai, Delhi, Chennai and Kolkata.

Transportation

DHL Supply Chain’s SmarTransport division will also leverage its warehouse investments to further accelerate transport growth by providing strategic, scalable solutions to large customers enabling economies of scale with end-to-end service offerings. Through its asset-heavy and asset-light model, DHL Supply Chain currently offers the full suite of transport solutions include Full Truck Load (FTL), Part Truck Load (PTL),  “milk runs”, secondary transport, intra-city and inter-city air movements.

GoGreen

In support of the DPDHL’s roadmap to have climate-neutral logistics by 2030, DHL Supply Chain India will be converting its entire intra-city fleet into Green fuel / EV versions by 2025. In fact, by the end of 2022, 100%  of the two-wheeler fleet will be converted to EVs. Furthermore, all new sites will implement green features, including solar panels for electricity, rainwater harvesting, LED lights, smart meters, etc.

“Asia Pacific currently accounts for about 15 percent of DHL Supply Chain’s global revenue but is among the fastest growing regions, with India being a key contributor to this growth. The Indian logistics market, worth over US$200 billion now, is expected to grow at about 10% per year in the next five years to reach around US$330 billion. We take a long-term view in India with businesses here having reasons to be optimistic,” said Terry Ryan, CEO, DHL Supply Chain Asia Pacific.

In recent years, the government has also increased efforts to improve the country’s logistics performance, boost trade and safeguard foreign investment – in particular, expenditure on logistics is expected to reach USD$500 billion annually by 2025. A Logistics division was recently established to introduce positive changes to existing procedures and bring related technology and innovation to maximize efficiency.

Vikas Anand, Managing Director, DHL Supply Chain India Pvt. Ltd said, “Building up large multi-client sites with efficient end-to-end transport solutions along with value-added services run by highly skilled employees allows us to maximize operational efficiency and puts us in a strong position to scale according to what our customers need, across various sectors. As one of the best places to work in India, we will continue to invest in our people, to deliver the best service quality to our customers.”

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Freight Forwarding

Kuehne+Nagel acquires South African freight forwarder Morgan Cargo

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Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
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Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.

The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK and Kenya, which includes state-of-the-art cold chain facilities.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”

Schalk Bruwer, CEO of Morgan Cargo, added: “We wanted to expand our successful family-owned business and took the opportunity to become part of one of the world leaders in logistics. This new development will provide greater opportunities for our customers in terms of global reach and allow our team to advance their careers beyond the realm that was previously possible. Morgan Cargo is extremely excited to become part of Kuehne+Nagel.”

Closing of the transaction is expected during the third quarter of 2023 and is subject to customary closing conditions, including clearance by the competent merger control authorities.

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Yusen Logistics partners with Toyota Motor to accelerate decarbonization

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Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
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Following on from last week’s press release Toyota to decarbonise its logistics activities in Europe, Yusen Logistics Europe partners with Toyota Motor Europe in this proactive approach to alternative powertrain development.

Together with VDL Special Vehicles, Yusen Logistics is honored to be part of the team to help accelerate the decarbonization of Toyota’s logistics network with the use of hydrogen fuel cell trucks. Using Toyota’s fuel cell modules VDL will convert an existing vehicle into a zero-emission truck for Yusen Logistics to operate within Toyota Motor Europe’s logistics network.

The innovative technology project is a significant step towards reducing both companies’ overall carbon footprint and aligns with Yusen Logistics’ wider commitment to working together with our partners and communities towards a more sustainable future.

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cargo-partner becomes part of Nippon Express Group

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cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
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As cargo-partner is celebrating its 40th anniversary, company owner and founder Stefan Krauter has decided to sell the Austrian global logistics player to Japanese stock-listed Nippon Express Holdings, which is also the parent company of Nippon Express, APC, Franco Vago and others. Having started operations in 1983 with only five employees at Vienna Airport and having developed the company almost completely organically to now 4,000 employees in 40 countries around the globe, Stefan Krauter had already passed on the baton to his management and now has also passed over ownership to his “ideal successor” NX.

After exceeding the billion euro mark in global turnover for the first time in 2020, cargo-partner’s turnover increased by 72%, reaching over 1.8 billion euro in 2021, and further increased to 2.06 billion euro in 2022.

“Leadership by agile founders bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founders’ challenge and responsibility to decide about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Krauter says. “That is why, together with the Corporate Executive Board, we started evaluating different options for the future of cargo-partner.”

Stefan Krauter continues to explain: “It would also have been a good option for the management and employees to continue going completely alone, but since the ideal new strategic owner was found in NX Group, we were ultimately convinced that this was the right way to go forward. Following the integration policy we have seen from NX Group so far, cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!”

The deal was signed on May 12, 2023 and will come into effect subject to the usual regulatory (anti-trust and FDI) approvals in an estimated four to seven months along with the subsequent closing.

“Both organizations will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product and IT know-how, increased scale and others. NX Group will benefit from our strong and extensive network in Central and Eastern Europe that complements NX’s existing network in an ideal way, and cargo-partner will jump several leagues in the Intra-Asian and Trans-Pacific trade lanes,” Stefan Krauter states. He adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business and support it in future with its upgraded platform which is presently under development.”

“I will personally continue to support the transition in my new role on the Corporate Supervisory Board and in my advisory function to the Corporate Executive Board. I will be focusing on smart partial integration with the new owners as well as on other matters regarding strategy, M&A and ESG. What an interesting and rewarding challenge at the end of my career!” Krauter says.

The sellers have been advised by J.P. Morgan (financial), ValueAdd (financial), BCG (commercial), Schönherr (legal), and Deloitte (accounting and tax) on the transaction.

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