DHL 2002 Annual Report Download - page 72

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71
Corporate Divisions
LOGISTICS
Outlook
We expect to see new revenue and income potential in the Solutions Business Unit,
as manufacturers and retailers in most sectors of industry are increasingly focusing
on their own core activities. This means that parts of the logistics supply chain will
be outsourced to service providers to an even greater extent. Since procurement,
production and sales are all becoming increasingly global in their nature, the demand
is for logistics providers who can offer their customers value added services and
also follow them into new markets. Our focus on key sectors such as automotive,
textiles/fashion and electronics/telecommunication allows us to offer our customers
best-practice solutions; at the same time, by bundling our express and logistics
activities, we are also able to provide them with global logistics solutions on an even
wider scale than before.
We are forecasting that ocean freight volumes will increase at a higher rate than
global GDP. We also expect prices to increase as against fiscal year 2002. In the light
of the escalating conflict in Iraq, it is difficult to make estimates of future price and
volume trends on the air freight market. For the time being, we expect volumes to
remain essentially unchanged, with the possibility of a slight increase in the second
half of the year.
In terms of individual regions, we expect the further expansion of activities in
the Asian region in particular to provide new momentum for both ocean and air
freight. China and India are the particularly promising growth markets in this region.
In our opinion, our strong positioning gives us every opportunity to expand our
overall market position. At the start of 2003, for example, we formed a joint venture
in India in cooperation with Lemuir, which allows us to offer air and ocean freight
services, as well as warehousing and domestic distribution, to customers across the
whole of India.
In the Eurocargo Business Unit, which will be included in the EXPRESS
Corporate Division for reporting purposes from 2003, we believe that there is growth
potential in the area of road and rail transportation to and from Eastern Europe.
However, forecasts for Western Europe are rather muted; we expect the key German
market in particular to stagnate.
All in all, customer requirements for overland transportation are also increasing.
As well as fast service, customers are looking for providers who can offer IT expertise,
an international presence, and the ability to help them with planning and designing
logistics processes. We consider ourselves to be well-equipped to meet these demands
in conjunction with the other Group units. We are aiming to slightly outperform the
market in 2003 in terms of overall growth.