Deutsche Post CEO Frank Appel yesterday clearly downplayed interest in entering or expanding inforeign mail markets due to the postal market decline and poor profitability prospects.
Addressing the World Postal Business Forum at Post-Expo, he said: “The likelihood that we willsee Posts running businesses abroad is pretty limited. The industry is shrinking, profits areshrinking, so why should we invest?”
This was a change of view since Deutsche Post had been more interested in foreign domestic mailmarkets in the past, he confirmed.
German newspaper Handelsblatt reported earlier this month that Deutsche Post is interested inDutch mail company Sandd, which is up for sale, and several other private European private mailfirms, including French operator Adrexo and DX Services in Britain.
On the issue of cooperation with other postal operators, Appel commented that DHL “candefinitely” work with other European Posts for B2C parcel deliveries. DHL managers recently saidthat they are trialling B2C deliveries in Austria and Switzerland in cooperation with the localpostal operators.
Appel also predicted there would be further consolidation in the logistics sector in response toincreasing customer demand for a wide range of services but stressed Deutsche Post had no plans foracquisitions in this sector.
Addressing future trends, the Deutsche Post CEO said logistics suppliers would probably have tocollaborate in future to provide services in ‘mega-cities’ in view of increasing restrictions forenvironmental reasons. “I have no doubt that traffic into cities will be restricted. If we want totruck goods to shopping malls, then we need to find new ways. Governments will ask for combinationsof logistics companies working together. This will be a challenge for logistics firms.”
Outlining the findings of Deutsche Post’s recent survey of trends in 2020, Appel said climatechange and new customer demands for more convenience will be two major trends. In response,logistics companies would have to offer smart solutions to simplify the lives of customers.
