Wednesday, January 6, 2010

DHL Sells Off Several Freight and Logistics Interests in UK

Maritime Transport Acquires DHL Container Logistics whilst HDN Takes Parcel Delivery Service
Shipping News Feature

UK – DHL (UK) has begun the New Year by selling both its container haulage business and certain domestic parcel carriage services to two former competitors. Maritime Transport has taken over DHL’s UK container arm whilst Home Delivery Network (HDN) has bought DHL’s day-specific parcel business.

Maritime Group Limited, the UK’s largest privately-owned container freight operator, acquired DHL Container Logistics with effect from the 1st January, 2010. The deal sees Maritime taking over DHL’s container handling and storage facilities in Felixstowe and Manchester and according to the company will “allow Maritime to develop its interests in container transport and for DHL Freight to concentrate on its core services in the UK.”

Speaking of the acquisition John Williams, Managing Director of Maritime, said that: “DHL Container Logistics is an excellent fit for our business, with complementary depots and customer base.

“Not only have we been able to strengthen our UK network, we will extend our service offering to customers too.”

Jeroen Eijsink, Managing Director of DHL Freight said: “We are delighted to have reached agreement with Maritime to acquire the Company and that its future is secure under the wings of a strong market leader, committed to the container transport sector”.

In the HDN deal, DHL has agreed to sell its UK domestic parcel business to the company for an unspecified sum, with HDN taking control of some 4,700 people, five hubs and seventy-one service centres spread throughout the UK by the end of the first quarter 2010.

The agreement is limited to DHL's domestic parcel business, also known as the Day Definite Domestic business, which concentrates on shipments that are delivered within the UK on a certain day rather than at a specific time of the next day. DHL Express will now focus its full attention on its Time Definite International and Same Day express services for the international and UK markets.

Ken McCall, CEO of DHL Express UK, said: “It was important to us to divest our own parcel business to a company that we can trust. HDN is a strong and well-respected player in the business-to-consumer field and thus ideally complements the business-to-business focused services we currently offer. This will certainly create an unrivaled service for all UK domestic parcel customers.

“We remain committed to ensuring our domestic parcel customers receive DHL's usual high standards of service and will work closely with HDN to ensure a smooth transition process. It will absolutely be business as usual for these customers.”

Brian Gaunt, HDN’s chief executive, said: “This transaction is great news for customers of both HDN and DHL Domestic. The growth of e-commerce has transformed our marketplace and with it the demands of our customers. Combining these businesses will enable us to offer our clients a wider variety of propositions and a more efficient service.”