International air and sea freight business set to grow
Dachser’s Air & Sea Logistics division is set to expand. By the year 2011, the international logistics provider intends to create some 1,600 new jobs around the world in its Air & Sea division alone, opening 72 new branches and generating sales worth more than one billion euros.
At a press conference in Munich, the Dachser management spokesman, Bernhard Simon, and the managing director of Dachser Air & Sea Logistics, Thomas Reuter, explained the group’s strategy for expansion. The strategy is being implemented worldwide under the name GLOBAL, with the first stage to be completed by 2011.
Over the next five years, i.e. in the period to 2011, Dachser aims to increase sales in its air and sea activities from EUR 431 million today to more than EUR 1 billion. The company is setting the course for this rapid growth pace by investing accordingly. Bernhard Simon announced that Dachser is seeking to increase its Asian business from its current EUR 85 million to approx. EUR 300 million. In the period to 2011 the company puts European growth in its air and sea activities at just under 100%, which would boost European sales in that division to over EUR 600 million. In North and South America the company aims to raise its sales from EUR 21 million today to EUR 120 million by 2011. Dachser wants to generate around 70% of the additional sales with its own resources, i.e. via organic growth. For the remaining 30% of the targeted growth, the company has earmarked sufficient strategic funds to finance acquisitions and establish joint ventures.
The logistics provider will thus be expanding its global network, focusing on all the key markets in America, Europe and Asia. In its sea freight operations, the company will be moving ahead to create fuller integration with its overland activities. In air freight, meanwhile, its main goal is to increase volumes. ‘The number of employees in Air & Sea Logistics around the world will rise from approx. 1,100 today to some 2,700,’ says Bernhard Simon.
IT integration and closer links with European overland services
In integrating its non-European and European services, Dachser will be drawing on its established IT strategy. It is planning to invest and to further develop its own IT systems accordingly. The goal is to create a global system of Dachser processes.
In future, the company intends to link its air and sea services much more closely ’ and from a large number of key business locations around the globe ’ with its European overland network, achieving full coverage in the process. ‘The link between our intercontinental activities and our European distribution competence creates value for our customers. Here, we have adopted a one-stop shopping concept, providing the full range of logistics services from a single source,’ comments the head of Dachser Air & Sea, Thomas Reuter.
Next steps in Asia
With effect from 1 April 2006, Dachser is founding a new company under a joint venture with the Korean logistics provider MGI. MGI & Dachser Inc., in which both partners have a 50% shareholding, has 35 employees and is domiciled in the South Korean capital, Seoul.
Also with effect from 1 April, the Dachser group will be founding Dachser Shanghai Company Ltd. in China. The parent company is the Hong Kong-domiciled Dachser Far East Ltd., which has been well-established in China for many years. The new company has a so-called ‘A’ class licence entitling it to provide international forwarding services and warehousing services in the country, and to issue Chinese documentation.
The US and South America
Dachser is also expanding in the USA, Mexico and South America. New offices are to be opened at four or five airports in the USA, and Brazil is to be connected to the global logistics network. Dachser opened an office in Mexico City at the beginning of March 2006.
In Europe itself, Dachser plans to plug existing gaps in its Air & Sea Logistics operations, such as Sca