This page contains a Flash digital edition of a book.
FBJ


FREIGHT BUSINESS JOURNAL ISSUE 2 2012


Europe's best multimodal newspaper


For news updates visit www.fbj-online.com


Pallets page 20: Pall-Ex presses on in Europe p.20⁄ Faster to Germany p.22 UPS’s TNT purchase to be first ‘global’ express merger


UPS has agreed to buy rival carrier TNT Express for about €5.16 billion, slightly more than the initial €4.9 billion offer rejected by the Dutch-based operator earlier this month. TNT’s executive and supervisory boards said they would unanimously intend to support and recommend the offer. While the four global express giants – UPS, TNT, FedEx and DHL – have acquired many companies in the past, including important national and regional players, this would be the first merger between two of the main global players. It would reduce the number of global players to three.


In a joint statement, the two companies said the merger would


create “a global leader in the logistics industry with more than €45 billion ($60 billion) in annual revenue and an enhanced, integrated global network.” and the two companies’ strengths would complement each other. (DHL’s total annual revenue for 2011 was about €53bn while for FedEx it was about €30bn or $39m.) Integration of TNT Express’ intra-Europe road freight network would expand UPS’s logistics solutions there and would deepen UPS’s existing position in fast-growing regions such as Asia-Pacific and Latin America. At the same time, TNT Express customers would “benefit from


UPS’s unparalleled access to the North American market, as well as access to its logistics solutions, such as global freight forwarding and distribution capabilities.” UPS added that the purchase would deliver around €400


to €550 million in “pre-tax cost synergies” in about four years’ time. The transaction would accelerate its growth, increase its geographic diversity and significantly enhance its ability to serve its customers’ complex global logistics needs. With the purchase, around 36% of the combined group’s revenues will be generated outside the US compared with 25% currently. With a combined network and enhanced IT platforms,


customers will have access to deeper product capabilities and broader reach through the expanded geographies served, giving them more choice and flexibility to support the growth and globalization of their businesses. The combination also will offer


A French high-speed parcels train headed for London on 20 March to demonstrate the possibilities of a planned European network. Full story page 3


A Bto


bySEA Northern Europe’s Leading Liner Shipping Network


+44 (0)1469 552600 DFDSSEAWAYS.COM/FREIGHT


Ireland page 25: Dentressangle reshapes logistics p.25/Shannon Airport p.29


And then there were three NEWS


employees greater opportunities to be part of a global, growing and respected business, the statement added. UPS also said that it recognised the expertise of TNT Express’


leading road freight network in Europe and would “create a meaningful centre of excellence for marketing, sales, and operations in the Netherlands.” In a press conference to announce the deal, UPS chairman and


CEO Scott Davis said that integration of the two companies would cost around $1bn and take about four years. The process promised to be “complex and long,” he added. Many aspects of the merger have yet to be decided. UPS


indicated that, ultimately, there would probably be a single brand name and that would be UPS, but the process would be a long one, they said. They also indicated that UPS’s existing Cologne hub would be the merged operation’s ultimate long-haul air hub for Europe, but that there could still be an important role for the TNT facility at Liege, Belgium.


Is it a bird, is it a plane? No, it’s a freight train


Customs problems brewing in Brussels


Yearsley gets into forwarding


Quality will cost says Maersk


Speeding through Southampton


FEATURES Equipment Corner


IT Apparel


Recruitment Freight Break


thinking for 25 years


Speak to the freight software experts today call +44 (0)115 938 0280 or email sales@forwardcomputers.co.uk www.forwardcomputers.co.uk


K9890_fbj 60x270-aw.indd 1 06/09/2011 09:49 7


13 15 18


38 39 40 43 44


New Liverpool box terminal in 2015


All change in container shipping...


6 2 63 Daily Crossings


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44