Execution Technology
Logistics Companies Report Strong 2005 Results
Financial reports for publicly owned logistics companies are beginning to come in, and performance in the past year appears to have been excellent. Deutsche Post World Net profit for the 2005 increased by 39.9% to €2.24 billion and Group revenue grew by 3.3% in 2005, to €44.6 billion. The Logistics division earnings before interest and taxes rose to €315.0 million, an increase of 73.1% from 2004. These figures do not include the results from the logistics company Exel, acquired in December.
In the U.S., CH Robinson 2005 gross profits increased 33.1% as net income increased 48.2%. Ryder reported 2005 revenues that increased by 11.0% to reach US$5.74 billion.
YRC Worldwide, the holding company that includes Yellow Transportation, Roadway Express, various regional carriers and Meridian IQ reported record operating revenue of $8.74 billion compared to 2004 record revenue of $6.77 billion.
http://www.corporate-ir.net/
http://www.dpwn.de/
http://phx.corporate-ir.net/
http://phx.corporate-ir.net/
TNT Completes Sale of France Logistics Unit, Gain Tire Contract And Scanner Deal
TNT and Pierre-Michel Mendy/Groupe Lapegue have signed an agreement for the sale of the activities of Transports Pierre Mendy and Mendy Ltda, part of the activities of TNT's French subsidiary TNT Logistics Holdings SAS. This transaction, together with the transactions announced on 1st December 2005, 2nd January and 27th January 2006, completes the sale of the TNT Logistics France business unit.
Neither the French Express business unit of TNT nor its French Freight Management business are involved or impacted by this deal.
In other TNT news, Pirelli, the Italian-based tire company, has assigned its logistics operations for another three years to TNT Logistics in Spain. Under the conditions of the contract, TNT Logistics will manage the factory warehouse at Manresa and two national distribution centres near Madrid and Barcelona. TNT Logistics will be responsible for reception of tires from plants in various countries. As part of the service provided, TNT Logistics will store the tires and prepare orders for 24-hour distribution to Pirelli customers throughout Spain. This service includes order administration and tracking of shipments.
Finally, Denso Id Systems, the Japanese producer of hand-held barcode scanners, will supply TNT Logistics Italy terminals for the management of the electronic proof of delivery system. At the same time, through its subsidiary Telis, TNT Logistics Italy has agreed on a partnership with Denso for the management of reverse logistics activities and the reconditioning of the handy terminals for Denso's clients.
http://group.tnt.com/
Deutsche Post and Four Leading Tech Companies Form Strategic Partnership
Deutsche Post World net, IBM, Intel, Philips and SAP will develop new technologies to make supply chains more efficient by uniting the flow of information and physical goods through increased automation, visibility and improved collaboration among trading partners.
In initial projects, industry-specific RFID applications will be tested in the supply chains of the partner companies and brought to market. Pilot projects have been started in the fashion, pharmaceutical and electronic industries in Europe, the United States and Asia First results are expected as early as mid-2006.
The global initiative covers all elements of the value chain for modern logistics technology: DHL offers customers express and logistics solutions worldwide. Intel has long experience in the development of innovative and leading computer, networking, and communications products. The combination of SAP's and IBM's software know-how and system integration expertise provides the foundation of current and future requirements for new business applications. And with Philips, the leading provider of RFID chip technology has joined the initiative.
http://www.dhl.com
Schneider Logistics to Buy American Overseas Air Freight
Schneider Logistics has signed a stock purchase agreement to acquire American Overseas Air Freight, an international freight forwarder and a licensed United States Customs Broker. The company specializes in the handling and shipping of import and export products by air, ocean and truck. Upon completion of the acquisition, Schneider National will be the first truckload carrier to complete the cycle of international to inland delivery.
The freight forwarding and customs brokerage expertise of American Overseas should complement Schneider's existing transportation and logistics services and help it to build a door-to-door global, multi-modal logistics operation.
American Overseas will operate under its own name asa wholly owned subsidiary of Schneider Logistics. American Overseas has operations in four locations in California: El Segundo, Carson, San Diego and San Francisco.
http://www.schneider.com/
DHL Expands New York City Footprint
DHL plans to enhance its foot-courier network within New York City by building a new facility on New York's West Side. The $10.4 million investment includes the leasing and retrofitting of an existing building near Times Square to serve DHL customers throughout New York's Upper West Side and Midtown business district. Approximately 65 percent of DHL's delivery volume within Manhattan is handled by foot-couriers that can avoid parking issues as well as the lengthy wait for freight elevators that oftentimes delay courier deliveries.
http://www.dhl.com
Eaton Names Penske Logistics its European Lead Logistics Provider
Eaton Corporation selected Penske Logistics to serve as its lead logistics provider in Europe. Under the new agreement, Penske Logistics will provide transportation management services, that includes the management and procurement of transportation, followed by a comprehensive supply chain redesign program for Eaton's European manufacturing operations spanning 13 countries.
The first step will be for Penske to implement their Transportation Management System (TMS) and the day-to-day handling of Eaton's inbound and outbound flows. Penske will optimize and redesign the transport network by combining shipments with other Penske customers.
http://www.gopenske.com/
Nippon Express to Form Joint Venture Cargo Company
Nippon Express is forming a joint venture company called ANA&JP Express Co., Ltd with three other companies, including Japan Post, All Nippon Airways Co., Ltd. and Mitsui O.S.K. Lines, Ltd. The new cargo joint venture is scheduled to be operational in August 2006, and will be located in Tokyo.
http://www.nipponexpressusa.com/
EGL Eagle Global Logistics to Manage Dell Supplier Logistics at New Facility
Dell has selected EGL Eagle Global Logistics to manage the supplier logistics center and fleet services at its new manufacturing facility in Winston-Salem, N.C. The Houston-based 3PL will occupy 175,000 square feet of warehouse space inside Dell's largest manufacturing facility and will support Dell's material supply-to-order model, overseeing inventory of internal components used in the computer assembly process. EGL has placed 20 employees in its Winston-Salem operation and anticipates at least 30 by the end of 2006.
http://www.eaglegl.com/
Ozburn-Hessey Logistics Leases DC Space in Dallas
IDI, the Atlanta-based developer of distribution centers, has closed a 178,200-square-foot lease with Ozburn-Hessey Logistics at Pinnacle Industrial Center, located southwest of downtown Dallas. The lease will provide storage and distribution space to accommodate recent 3PL assignments won by Ozburn-Hessey.
http://www.ohlogistics.com/
BNSF's 2005 Economic Development Efforts Lead to $1.3 Billion in Investments
Economic development efforts of BNSF Railway Company were instrumental in the location of 114 new or expanded facilities during 2005 in the areas served by the railway. These facilities involved investments of $1.3 billion and the creation of about 7,000 jobs. The 114 facilities included lumber yards and transload facilities in California, Colorado, Idaho, Kansas and Texas; paper distribution facilities in California and Kansas and a major retail distribution facility in Illinois. Other companies located along BNSF lines in 2005 include several facilities for building products, fertilizers, plastics, aggregates and ethanol.
BNSF assisted Wal-Mart Stores, Inc., the nation's largest company, in locating a 3.4 million-square-foot bulk storage facility near BNSF's Logistics Park-Chicago in Elwood, Ill. The facility will bring more than 600 jobs to the area and is scheduled to open in the second half of 2006.
http://www.bnsf.com/
Schenker and StarTrans Form Joint Venture on the trans-Pacific Route
The German-based 3PLSchenker has entered into a joint venture with StarTrans International, an air freight specialist based in Hong Kong to increase their combined trans-Pacific business. The joint venture will expand Schenker's presence in the growth market of the Asia-Pacific region, particularly for special industry segments such as apparel and toys, automotive and high-tech, where StarTrans has the majority of its customers. The joint venture plans to introduce a very competitive business model for air freight on the trans-Pacific route and Schenker is confident, along with the recently acquired BAX Global, that the two companies will become leading players on the lane. While StarTrans complements Schenker's global network, StarTrans' customers will also benefit from the joint venture by having access to Schenker's facilities and an expanded variety of distribution routes.
Schenker will be the majority shareholder in the joint venture. StarTrans recorded annual sales in 2005 of US$200 million and employs approximately 500 people.
http://www.schenker.com/
Kuehne + Nagel Mexico Manages Spare Parts Warehousing for Toyota
Kuehne + Nagel has been awarded a five-year contract to manage national spare parts warehousing for Japanese carmaker Toyota. Operating out of the new Cuautitlan distribution center in the north of Mexico City, Kuehne + Nagel is initially dedicating around 65,000 sq. ft. of warehouse space to Toyota. Services include goods receiving, inventory control, pick & pack, special handling of hazardous material and order preparation. The carmaker plans to supply all Mexico-based dealers from the location
http://www.kn-portal.com/
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