FRANKFURT Dec 10 Deutsche Post,, the
world No. 1 postal and logistics group, will invest 150 million
euros ($206 million) to double capacity at the European hub of
its express delivery business, it said on Tuesday.
The DHL Express division, which posted 14 percent growth in
third-quarter profit from operating activities to 263 million
euros, saw its European shipments grow 8.7 percent in January to
September this year.
"On the back of that we've had some moderate market share
gains," DHL Express Europe CEO John Pearson said, without
providing details. DHL Express competes with United Parcel
Service and Fedex Corp.
Asked to comment on Deutsche Post's plans to use drones to
deliver parcels in future, Pearson said the company had been
looking into the idea.
"I think it will be quite some time before you see the
mailman disappear off the streets of Germany and Europe to be
replaced by drones. It's an interesting idea. I think it has a
long way to go before it becomes a commercially viable
proposition," he said.
Deutsche Post DHL AG on Monday launched in Germany test
flights of a delivery drone, a week after Amazon.com Inc
said it was developing drones to deliver packages to
Deutsche Post executives said they were testing the drones
to deliver medicines in areas that are hard to reach.
Meanwhile, work on the new facilities in Leipzig will start
this month and the expanded warehouse with a new shipment
sorting system will be operational from the fourth quarter next
There are around 3,500 people currently employed in Leipzig,
processing about 90 percent of DHL Express shipments in Europe,
and the investment will create around 400 jobs.
Roy Hughes, Vice President for Network Operations Europe,
told reporters that while the sorting capacity was being
expanded, the company would continue using the current fleet of
aircraft before acquiring larger planes in the future.
($1 = 0.7289 euros)
(Reporting by Marilyn Gerlach and Matthias Inverardi; Editing
by Mark Potter)