French express parcels operator Geodis Calberson is aiming to triple its European business overthe next few years to reduce dependence on its home market, a top executive told CEP-Research.
Acquisitions could be on the agenda, too.The operator, which is the ‘groupage express’ division of SNCF-owned Geodis, will open severalnew branches, deepen its European partnerships and extend its European products, Jean-PierreAllhoff, Commercial Director European Networks, said in an interview at the recent transportlogistic trade fair in Munich.
At present, Europe represents only about 13-14% of Geodis Calberson’s €1.8 billion annualrevenues but this percentage should more than double to 30% by 2015 and represent an overalltripling of the business size, he revealed. “By 2013 we want to post €2 billion in revenues and by2015 €2.5 billion. We want to have 30% international business. We must be at 30% by 2015,” hedeclared. This would give the operator non-French revenues of about €750 million compared to onlyabout €250 million at present.
The operator is already growing well internationally this year with higher volumes, Allhoffsaid. The European subsidiaries in Italy, the UK and Benelux have volume increases of 15% so farthis year. Geodis Calberson,with some 36 million annual shipments, accounts for about 36% ofoverall Geodis revenues.
The operator’s European growth strategy is based around a combination of network expansion anddeeper partnerships, Allhoff explained. European shipments of express subsidiary France Express aredelivered through the Net Express Europe alliance, which also includes the UK’s City Link, Spain’sSeur, Bring Express in the Nordics and smaller specialists. “Net Express has existed for 15 years.The network is healthy and growing,” he declared. The ‘Eurofirst’ service for heavier multi-pieceshipments is provided through the company’s own branches and separate partners for othercountries.
In terms of own network expansion, Geodis Calberson plans to open up to six new terminals in theUK in the next three years to broaden its presence in the market. In the Benelux, it will open anew centre at Villefort, close to Brussels. In Italy, the company last year acquired a domesticdistribution firm, Ribi, with five depots.
Asked about potential acquisitions in view of the growth ambitions, the Europe chief responded: “ We will look at opportunities. (But in) countries like Germany and central Europe we will focus onpartnerships.”
In terms of products, Geodis Calberson wants to develop a European pallets service. “We want tobuild up a European pallets business for the automotive, healthcare and industrial goods sectors,”Allhoff said.
In its home French market, Geodis Calberson has strengthened its business significantly with therecent acquisitions of express firm Ciblex and temperature-controlled transport firm Cooljet. “These were significant acquisitions to broaden our offering,” he confirmed. The core businesses didnot cover these segments. France Express offers twice-daily nationwide deliveries of items up to2kgs while Calberson provides non-guaranteed next-day deliveries of parcels and largershipments.
Ciblex filled a gap in the express offering with a service for next-day deliveries of items upto 30kgs by 10:00. “We did not have this in the past,” Allhoff said. Ciblex will use the NetExpress Europe alliance for international deliveries in future, he confirmed.
