* Will study re-entering French, UK domestic parcel delivery
* Sees global express market growing 5-6 pct/yr in 2011-2020
* Sees global air freight forwarding market growing 2-3 pct
(Adds CEO comments, rewrites first paragraph, adds detail and
By Marilyn Gerlach
FRANKFURT, May 27 Deutsche Post is
aiming for a global expansion of its parcel delivery business
and wants to become world No. 1 by 2020, its CEO said, betting
on a boom in the delivery of parcels ordered from websites such
as Amazon.com Inc.
Like other postal companies, Deutsche Post is benefiting
from the rapid growth in online retail sales, seen doubling in
Europe from 2012 levels to around 323 billion euros ($438
billion) by 2018, market research firm Mintel forecasts.
Already the world's biggest postal and logistics group,
Deutsche Post aims to replicate that position in parcels and
Chief Executive Frank Appel told the company's annual
shareholders' meeting it would consider re-entering European
markets it had exited, such as France and Britain, as well as
growing further afield.
"We want to apply our successful German parcel strategy in
other countries," in Asia and the Americas as well as in Europe,
he told the meeting on Tuesday.
"We intend to remain the number one in Germany and expand
our position. We also intend to become the global number one in
this business by 2020," Appel added.
Deutsche Post currently makes about three-quarters of its
revenue from its DHL logistics units, comprising express
courier, forwarding and supply chain services. The rest comes
from mail and parcels.
The company holds a 42 percent market share of Germany's 8.2
billion euros ($11.2 billion) parcel delivery market and
competes with DPD, majority-owned by France's La Poste
; Hermes, owned by Germany's Otto group; United Parcel
Service ; FedEx ; and General Logistics System of
Britain's Royal Mail Group.
TIME WILL TELL
According to UPS's website, it is the number one in the
United States, delivering 4.3 billion parcels and documents last
year, and has a daily delivery volume of 16.9 million items.
Responding to questions, Appel said Deutsche Post's DHL
express courier business had exited domestic delivery in some
countries in Europe such as France and Britain because of the
substantial losses it had racked up there.
"We will now examine whether it makes sense to enter again
these markets," he said, adding: "Time will tell whether we want
to have our own activities or whether we will offer them
together with partners."
DHL sold its domestic parcel delivery units in France and
Britain in 2010 and in Romania in 2012. In 2009, following tough
competition with UPS and FedEx, as well as the effects of the
global financial crisis, it closed its air and ground domestic
business in the United States to focus on international
Appel's presentation charts on Tuesday showed Deutsche Post
expects annual growth rates in the German parcel market at
between 5 and 7 percent from 2011 to 2020.
During the same period it expects global annual growth rates
in the international express market at 5 to 6 percent, air
freight forwarding at 2 to 3 percent, ocean freight forwarding
at 4 to 5 percent and contract logistics at 5 to 6 percent.
($1 = 0.7325 Euros)
(Editing by Mark Potter and David Holmes)