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Hellmann acquires “Innight Express” express parcel service provider

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Hellmann acquires "Innight Express" express parcel service provider. Image: Hellmann
Hellmann acquires "Innight Express" express parcel service provider. Image: Hellmann
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The global full-service provider Hellmann Worldwide Logistics is acquiring the overnight express provider “Innight Express” based in Hungary and Romania. With this acquisition, Hellmann is completing an important milestone in its expansion strategy in the Central and East European markets and tapping into the key overnight express services segment.

The two shareholders Tamás Aradi and Zoltán Csombok will continue to manage the company as Co-Managing Directors. Customers can expect a seamless integration and unchanged business relationships.

Since its foundation in 2004 in Törökbálint, Hungary – 15 kilometers west of Budapest – Innight Express has developed into an overnight express specialist, primarily serving customers in the automotive and agricultural industries. For the past eight years, the company has also been successfully represented on the Romanian market by its subsidiary Innight Romania Express in Ciorogârla.

“By expanding our overnight-express services into Eastern Europe, we are taking another important step in our expansion strategy, which we have been executing upon since the beginning of the year, with initiatives such as the acquisition of Hellmann East Europe and the joint venture of Rhenus & Hellmann,” says Jörg Herwig, Chief Operating Officer Road & Rail Hellmann Worldwide Logistics.

“The acquisition of Innight Express gives us access and a presence in two attractive emerging countries in the Eastern European overnight-express market. We are pleased to be able to take on all 74 employees as part of the Innight Express acquisition,” added Wilfried Hesselmann, Chief Operating Officer CEP, Hellmann Worldwide Logistics.

“As part of the global Hellmann FAMILY, we want to make our contribution to the overall success of the company in the future. Our goal is to further expand while sustainably strengthening our presence and share in East Europe,” say Tamás Aradi and Zoltán Csombok, Managing Directors.

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Air Freight

Lufthansa Cargo and Kintetsu World Express commit to use SAF

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Lufthansa Cargo and Kintetsu World Express commit to use SAF. Image: Lufthansa Cargo
Lufthansa Cargo and Kintetsu World Express commit to use SAF. Image: Lufthansa Cargo
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Japanese freight forwarding company Kintetsu World Express, commits to CO2-neutral freight transports with Lufthansa Cargo. Kintetsu World Express will reduce around five percent of its total CO2footprint of transported airfreight with Lufthansa Cargo for one year. Kintetsu World Express has committed to using Sustainable Aviation Fuel in the period from October 2022 to September 2023. In addition, the company has decided to offset the so-called well-to-tank emissions generated during the production and provision of Sustainable Aviation Fuel with the help of certified climate protection projects.

“Climate change is getting more and more obvious and devastating everywhere in the world. As an asset-light freight forwarder, reducing our Scope 3 greenhouse gas emissions is key to winning the battle against global warming. And SAF is a rising star. Recently, in our initial response to the recommendations of The Task Force on Climate-related Financial Disclosures (TCFD), we declared our intention to actively participate in our partner airlines’ SAF programs. I am delighted and proud to work with our long-time partner Lufthansa Cargo for the sustainable future of the air cargo industry”, states Nobutoshi Torii, President & Chief Executive Officer of Kintetsu World Express.

“We are very proud that we have been able to win Kintetsu World Express, one of our most important customers, to transport their freight with us on a CO2-neutral basis,” says Dorothea von Boxberg, Chief Executive Officer of Lufthansa Cargo AG. “Already today, Sustainable Aviation Fuel offers the opportunity to save around 80 percent of emissions in airfreight transport. That’s why every customer who takes advantage of this opportunity makes a decisive contribution to advancing decarbonization in logistics. Thanks to the commitment of Kintetsu World Express and our other customers who have chosen Sustainable Aviation Fuel, we have already been able to replace around two percent of our annual fossil fuel requirements with Sustainable Aviation Fuel in 2022.”

More climate-friendly flights with SAF

The overarching term for sustainable, biogenic or synthetic kerosene is “Sustainable Aviation Fuel” (SAF). SAF is considered to be the first real alternative to fossil aviation fuel. Currently it is mainly produced from biomass. In the future, “non-biogenic” fuels will also be available; the best-known example is the so-called Power-to-Liquid (PtL) concept based on renewable electricity, water and CO2. SAF enables an almost closed CO2 cycle: While fossil fuels release CO2 that has been bound for millions of years and the current level of CO2 in the atmosphere is increasing, the use of SAF in the combustion process releases only as much CO2as was bound immediately before in the manufacturing process.

Sustainable Aviation Fuel is the key to CO2-neutral air traffic and can be fed into regular flight operations without infrastructure adjustments. There are different production processes and different feedstock materials for SAF. The SAF currently used by Lufthansa Cargo is produced in the HEFA process (Hydroprocessed Esters & Fatty Acids) from biogenic residual materials, for example from used cooking oils. It does not conflict with food cultivation, as only forestry, agricultural or gastronomical waste is used. Lufthansa Cargo offers SAF via the Lufthansa Group from the world’s leading SAF manufacturers. Since September 2021, all Lufthansa Cargo customers have been able to have their freight transported in a CO₂-neutral manner by opting for the Sustainable Choice add-on service.

Additional offsetting through myclimate projects leads to complete CO2neutrality

In addition to using Sustainable Aviation Fuel, Kintetsu World Express relies on additional offsetting of greenhouse gases generated in the provision of SAF. Lufthansa Cargo offers its customers a selection of ten carbon offset projects curated by the Lufthansa Group from the non-profit organization myclimate, which applies only the strictest, independent quality standards such as Gold Standard and Plan Vivo when selecting and designing carbon offset projects. With the help of the high-quality offset projects, fossil energy sources are replaced by renewable energy or energy-efficient technologies. Another option is to protect endangered forests, whose trees extract CO2 from the atmosphere over their lifetime, convert it and store it as carbon.

The amount of emissions saved from the projects is calculated and can be passed on to companies in the form of emission reduction credits – so-called certificates – in quantities appropriate to their needs. On the basis of the certified CO2 savings or reductions, it is therefore possible to offset CO2 emissions that arise, for example, in the course of freight transport. Another advantage is that the compensation mechanism via high-quality projects not only involves climate protection measures that demonstrably save CO2, but the projects also always bring local benefits for the population and the environment. Jobs are created, infrastructures improved or health risks reduced, biodiversity protected or educational opportunities improved.

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Freight Forwarding

DHL inaugurates a new transhipment hub in Johannesburg

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DHL inaugurates a new transhipment hub in Johannesburg. Image: Pixabay
DHL inaugurates a new transhipment hub in Johannesburg. Image: Pixabay
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DHL Global Forwarding, the leading international air, ocean, and road freight services provider, has inaugurated a new transhipment hub and head office in Johannesburg, South Africa. The sustainable, primarily solar-powered complex was officially opened on Thursday, 22 September 2022. Located in the Sky Park Industrial Estate it provides easy access to “OR Tambo International Airport”.

The facility’s temperature-controlled chambers and Good Distribution Practices-trained personnel enable the new hub to cater to the unique needs of Africa’s rapidly advancing life sciences and healthcare sector. The facility’s opening marks a significant addition to DHL Global Forwarding’s extensive logistics network, further strengthening its positioning on the African continent and in South Africa while enabling the group to handle its customers’ requirements more efficiently.

Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, said: “We are proud that this new facility was built to the highest standards of sustainability and energy efficiency in line with DHL Global Forwarding’s goal of reaching net-zero logistics-related emissions by 2050. Already, our climate protection initiatives and CO2 emissions reduction programs have had a positive impact on logistics supply chains globally and building sustainable infrastructure like this solar-powered facility takes us closer to our goal.”

The new EUR 7-million facility includes offices and a 10,000 m2 warehouse. It will serve as a hub for transport, logistics, and warehouse solutions, as well as international freight expertise for different industries. This includes a strong focus on Africa’s life sciences and healthcare sector, which with an expected annual growth rate of 6.3% and anticipated revenue of EUR 7.1 billion by 2023, is one of the booming industries in the country. To serve the needs of the LSH sector, the site has been designed to meet the DHL Global GxP Pharma standards and the highest Transported Asset Protection Association security standards.

At the facility’s opening ceremony, Clement Blanc, CEO of DHL Global Forwarding for South Africa & Sub-Saharan Africa said: “A new facility in Johannesburg is a natural next step in our efforts to support economic growth and accelerate the pace of supply chain transformation undergoing in South Africa. This facility expands global connections to Africa, ensuring that sectors like LSH can operate smoothly, access an efficient and reliable logistics network, and continue to grow.

Blanc continued: “The strategic location of our new facility at ‘OR Tambo’ will enable us to enhance our service offering to clients. We are excited to be able to transport both time- and temperature-sensitive pharmaceutical goods and health products, among other services. I am confident in our ability to assist our customers in developing and expanding their businesses and continuing to aid the socio-economic growth of South Africa and the greater Sub-Saharan African region.”

The new facility will also create skilled jobs in Johannesburg. DHL Global Forwarding has expanded its total workforce in South Africa by 11% since 2021. The company also has a strong commitment to supporting and driving the participation of SMEs in the economy and ensuring that they have a place in global supply chains.

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Freight Forwarding

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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