The Logistician - Vol 37

Thursday, 26 September, 2002

The official newsletter of the Logistics & Supply Chain Management Society.
http://www.lscms.org

- Danzas strengthens global air freight position
- PSA extends reach
- Persatuan Logistik, Selangor dan Kuala Lumpur
- Name change for MITSUI OSK
- Lufthansa reports healthy profits half-year profits

Danzas strengthens global air freight position

DANZAS Group, the logistics subsidiary of Deutsche Post World Net, increased its worldwide market share in air freight exports to 6.2 per cent this year compared to 6 per cent in 2000, the company stated.

It remains first in its class in Europe with a 10.3 per cent market share and is top in North America with an 8.2 per cent share in the market whilst holding third place in Asia/Oceania with 4 per cent market share.

The basis for these worldwide comparisons among providers of air freight services are the figures published by IATA (International Air Transport Association) and by CNS (Cargo Network Services) in the US.

Danzas said air freight volumes and carrier rates were lower in the first half of 2002 than in the comparable prior year period. Some improvement in trend was noted towards the end of the first half of 2002. The company said half-year results for the entire group were gratifying. The company said it anticipates more improvements in the second part of the year barring any unforeseen circumstances.
 
PSA extends reach

PSA Marine, subsidiary of Singapore's PSA Corp, has announced it is to acquire a 20 per cent equity stake in Mermaid Marine Australia, the Australian-listed operator of offshore support vessels, for A$7.04 million (US$3.9 million) and six million stock options.

The move reinforces PSA's expansion from its home-based terminal operations into the offshore oil and gas business, which Mermaid Marine services through a fleet of vessels and supply bases.

"As PSA Marine grows into a global marine company, we need to extend geographically and in our spread of businesses," said V Sivarajan, managing director.

"We have core competency in marine operations for the offshore oil and gas industry," he also said.

"This partnership expands our service offering and our scope of operations. We are glad that we have found in Mermaid Marine a partner with a good strategic and business fit."

Under the acquisition, Mermaid Marine will issue 23.48 million new shares to PSA Marine plus a two-tranche option, a PSA announcement said.

Persatuan Logistik, Selangor dan Kuala Lumpur

With immediate effect, The Logistics & Supply Chain Management Society will no longer be supporting Persatuan Logistik, Selangor dan Kuala Lumpur based on reports that Reshma Yousuf d/o Ghulam Yousuf who was installed as Chairman and a few other associates are under investigations by relevant parties and Malaysian governmental authorities.

We wish them a successful outcome and encourage all members of the public to cooperate with the relevant authorities by coming forward with any information they might have that could prove relevant.

Name change for MITSUI OSK

MITSUI OSK Lines (Asia) Ltd, the regional headquarters of Japan's MOL inter-modal shipping company, has changed its name to MOL (Asia) Ltd as part of the liner division's global and corporate identity branding campaign.

MOL Asia will continue to operate out of Hong Kong, the regional headquarters since 1998, where it manages the container liner operations, including logistics and other related businesses, the company said.

MOL first opened a representative office in Hong Kong in 1901, and Mitsui OSK Lines (HK) Ltd was established in 1971. Four years ago, the office became the regional headquarters and was renamed Mitsui OSK Lines (Asia) Ltd.

Lufthansa reports healthy half-year profits

Europe's second largest airline posted a profit of 332 million euros against 105 million euros in the year-earlier period, way above analysts' forecasts of between 192 million and 233 million euros. Revenues were up 4.7% at 8.2 billion euros.

The carrier still posted a net loss of 27 million euros for the first half but this was an improvement on the 43 million euros deficit in the same period a year ago.

Lufthansa said full year operating profits will be "at least" 500 million euros after taking into account "all identifiable risks". This compares with a forecast of 400 million euros in June. If the German economy picks up in the second half, the result could turn out to be even better, the company said.

"Despite the sluggish economic climate and the aftermath of the terror attacks, we performed outstandingly and thus strengthened our leading position in international competition," said Juergen Weber, chief executive.

Lufthansa is the latest major European carrier to report a significant financial turnaround in both passenger and freight operations, in sharp contrast to the heavy losses besetting the U.S. airline industry. KLM Royal Dutch Airlines, Europe's fourth largest carrier, almost doubled second quarter operating profit while British Airways, the market leader, tripled profits in the second quarter.