In the Express lake, the war on China is becoming more and more fierce

Abstract: In the Express Lake, the war on China is increasingly fierce. DHL North Asia Operation Center opened in Shanghai on July 12, the same day Shanghai Airport Group President Li De to reporters, the earliest in August this year, FedEx and Shanghai Pudong Airport is expected to sign a new

In the Express lake, the war on China is increasingly fierce.

DHL North Asia Operation Center opened in Shanghai on July 12, the same day Shanghai Airport Group President Li De to reporters, the earliest in this August, FedEx and Shanghai Pudong Airport is expected to sign a new "intercontinental" transshipment hub, coupled with UPS early years in the Pudong Airport built international transshipment Center, The international three major express delivery giants will be in Shanghai again.

Besides the scale of the Operation Center, the domestic Express license is also full of Mars.

DHL chief executive Peng said he was not worried about the threat posed by FedEx and UPS, which are applying for a domestic express business license. In his view, two competitors will not be able to obtain national licences, only in some areas of the operation.

Peng's assertion seems to coincide with the National Post Office. July 12, the State Post Bureau Director Majunsheng in an exclusive interview with reporters denied that the Federal Express and UPS issued a domestic license.

The Battle of the market

Once FedEx and Shanghai Airport agreement finalized, three international express giants will undoubtedly upgrade the degree of competition in China, from the layout of the war to a new round of close hand-to-hand combat.

The reporter learned that prior to UPS, FedEx and DHL's Asia-Pacific hub of their respective points of contact, there is no direct conflict. such as FedEx's Asia Pacific Operations Center in Guangzhou, ups of Asia-Pacific Operations Center selected in Shenzhen, DHL Asia-Pacific Operations Center is basically fixed in Hong Kong.

However, with the start of the DHL North Asia Operation Center, DHL also changed low-key posture, high-profile public in China a series of actions.

Peng to reporters that, in addition to the Pudong airport in the opening of the DHL North-Asia hub, the DHL supply chain is about to enable a large logistics hub in Hong Kong, DHL Global freight logistics in the Asia-Pacific region, a new operating hub is also about to open. In addition, at the end of December, DHL will further improve its Shanghai air transport bonded facilities.

This is the first time that DHL has entered China for more than 20 years, with such a dense and high-profile admission plan. DHL CEO Lin Lun also announced a follow-on expansion plan, saying that DHL will invest 132 million U.S. dollars in the next 2 years to deploy 8 DHL-specific aircraft to fly a strong business demand in Shanghai to North Asia, Europe and the United States routes.

In addition, DHL plans to further increase capacity between the North Asia hub and other Chinese cities and Taiwan. In fact, DHL in the Chinese market has long been invisible giants, Peng revealed that the current DHL revenue in China amounted to 4.2 billion euros, equivalent to 32.8 billion yuan, its business in China is UPS, FedEx and TNT three combined.

Therefore, when DHL announced the opening of a new operation center, it means that the large operation center needs more freight support, the Chinese market will be more intense food grab.

FedEx announced recently in Shanghai and Guangzhou, respectively, the use of a Boeing 777 cargo aircraft to serve the Chinese market. Both routes are 5 flights per week, from Tuesday to Saturday, by the Guangzhou and Shanghai direct FedEx in Cologne, Germany transshipment center.

In June, FedEx has just completed the expansion of its location at Shanghai Pudong International Airport Operation Center, thus further enhance the international cargo handling capacity. The Operation Center covers an area of 17375 square meters, more than the original area of nearly 50%, cargo sorting capacity of up to 9,000 per hour, compared to the previous efficiency increased by 50%.

License plate Puzzle

China Transportation Association, East China Working Committee Secretary-General Wang Lei, said the three big investors in China's investment, the market competition in China behind the white-hot, open up the domestic market, so that the international market connection, is their real purpose. Because of this, the acquisition of Domestic Express license plate is its access to the domestic market must path.

Compared to DHL through the joint venture with the Chinese and foreign companies to obtain the domestic express market management, FedEx and UPS are ready to operate as a wholly-owned Chinese market. May 25, the state Post office publicized two companies in the application for domestic Express business license. According to Dawa, vice President and secretary General of China Express Association, the domestic license will be given to UPS and FedEx sooner or later, and the state Post Office director Majunsheng the same acquiescence.

For the news, Peng does not seem to worry too much, he believes that DHL in the Chinese market is strong enough to do business is fully equipped with the necessary conditions, more than the other two rivals more abundant. But the current situation in China's domestic express market is not suitable for intervention, the international business can give higher profits, and provide its customers with greater value-added.

China Express Consulting Network chief Advisor Xu confirmed to reporters that the three giants, although operating in China for many years, the profit situation is not optimistic, is expected to be the worst annual loss of billion, can be said to be a loss to rob the market. DHL is a certainty, Peng told reporters, he believes that FedEx and UPS even obtain domestic express license, but also only in some areas of operation, will not get the national right to operate.

Dawa told reporters that FedEx and UPS licensing delays were approved, and two companies to expand the scope of business, FedEx and UPS were only prepared in Beijing, Shanghai, Shenzhen and other 8 cities and 5 cities to carry out domestic express business, but subsequently both companies have changed their attention.

Reporters from the industry learned that several major international express delivery giants have been in contact with a number of large private courier companies, to understand the operation of the company, although did not mention the purchase price, but seems to have been interested in the right time to be acquired. A large domestic private courier company executives to reporters that industry peers believe that the acquisition of a home sooner or later, once FedEx and UPS to get the Domestic express license, will soon start to buy a one of the four, the domestic network can immediately spread out, forming a domestic network and international network connection, then, EMS and Fung (Micro Bo) and so are unable to contend.

For such a prospect, Majunsheng says it is unlikely. "A four-pass, not to buy can be acquired." ”