GeoPost, La Poste’s CEP express parcel holding, will continue to build up a worldwide network ofpartnerships, ventures and subsidiaries to grow its intercontinental business and offer a
competitive alternative to the four integrators, Intercontinental CEO Wolfgang Lehmacher toldCEP-Research in an exclusive interview.Alongside its European expansion, GeoPost has been gradually building up its worldwideactivities in recent years through a combination of selective acquisitions and joint ventures underthe DPD brand and international operational partnerships. It now offers worldwide delivery to 230countries. Revenues and volumes for the intercontinental business are not disclosed, however.
“Our main ambition is to strengthen our position as the world’s domestic express parcelspecialist through a focused strategy and a flexible mix of owned infrastructure and partnercapabilities,” explained Lehmacher. “Following our success in Europe, GeoPost has chosen to expandthrough a collaborative partnership-based business model, which offers all stakeholders significantbenefits. We are committed to strengthening our global capabilities by continuing to focus on theneeds of the local markets and customers – this is the main driver of our success, both in Europeand around the world.”
The German-born manager, CEO GeoPost Intercontinental since December 2005 and also a GeoPostboard member, is responsible for all GeoPost entities outside of Europe, encompassing Russia / CIS,Turkey, East Asia, Middle East / South Asia, Africa and the Americas, and is responsible for theglobal expansion of the group and its worldwide network. He previously held senior positions atGeoPost’s European subsidiaries and earlier worked at TNT Express.
In order to offer worldwide distribution for European customers, GeoPost initially set up aninternational linehaul air network through a strategic partnership with Air France-KLM and thelatter’s express subsidiary SoDExi, in which it has a 25% stake. Local distribution is provided bypartners or subsidiaries. This ‘asset-light’ strategy combines low capital investment with theadvantages of local expertise and capabilities through strategic partners, allowing GeoPost tofocus on customer relationships and IT services such as global track-and-trace, Lehmacherexplained.
“Our global presence now extends to most major high growth markets around the world,”Lehmacher said. “The intercontinental network is being built around GeoPost’s strategic investmentin SoDExI, in conjunction with our JV partner AF-KLM, to provide linehaul solutions that link ourEuropean stronghold to our strategic presence across the world. The intercontinental air linehaulsare being supplemented by regional networks built around partnerships with key local players, suchas IBC and ARAMEX. These partners will provide regional linehauls as well as gateways in keycountries. And they perform the deliveries where we ourselves do not have our own presence.”
In Asia, GeoPost has set up DPD-branded operations in China, South Korea, and has cooperationagreements with Japan Post and Vietnam Post. Two significant partnerships were sealed in the regionthis year. “Mid-2008, GeoPost entered into cooperation with the Qantas-owned Asia network operator,DPEX, since then the GeoPost network partner for this region. We have also formed a partnershipwith Continental Carriers in India in 2008 which is important for our development in one of thehighest growth areas in the region. Our owned operations in China and Korea continue to grow anddevelop according to plan,” Lehmacher said. The company also opened an East Asia regional headoffice in Hong Kong in November.
Elsewhere, GeoPost has formed a strategic partnership with Turkey’s Yurtici Kargo, which isalso the GeoPost partner in Russia, Ukraine and Kazakhstan. In the UAE, a joint venture has beencreated with the Kanoo group, while in South Africa there is a joint venture with The Laser Group.GeoPost also opened up two new point-to-point routes this year (Paris – Miami and Hong Kong –Delhi).
Despite the poor economic outlook, GeoPost is optimistic about further growth in trade withemerging markets such as Asia and, increasingly, with Eastern Europe. “In light of the recenteconomic developments, our priorities have not changed as we are very well positioned and ourbusiness model has proven successful,” Lehmacher said. “The current economic climate requirescompanies, more than ever, to stay on top of costs while improving their competitive advantage. Webelieve that our approach is the most innovative way to create a competitive and collaborativeexpress parcel network. This is especially so in volatile times, as companies seek to optimisetheir value chain in order to free valuable resources that can be used to focus on their corebusiness.”
GeoPost will continue to optimise its network in the short term, while extending its networkcapabilities in BRIC states in the longer term, Lehmacher said. “We will continue to enhance theperformance of the global network and services by leveraging our partnership with AF-KLM and addingnew direct, point-to-point links, mainly into Europe.”
The product portfolio of ‘day-probable’ DPD Classic parcels and ‘day-certain’ and ‘time-certain’ Express parcels could be supplemented by new offers. “The successful initiation of animportant inbound project from Asia to Germany shows the potential for intercontinental trade, withparcels handled both within the GeoPost standard set-up and through customised solutions withdirect flights to key destinations in Europe.” Lehmacher added.
