The newly rebranded DPDgroup is maintaining strong overall growth in its country subsidiaries,with Eastern European countries playing an important role in its overall business, but the Russian
and Ukrainian markets have been impacted by the current political and economic situation.GeoPost president Paul-Marie Chavanne told journalists at a press conference in Paris this week:“When we look at Europe, there are three main big markets which are Germany, the UK and France,followed by Spain and Poland and the total of all the Eastern European markets. Each of the EasternEuropean countries including Slovenia, Slovakia, Czech Republic, Croatia, Serbia, Bulgaria, Hungaryand Romania don’t constitute an enormous market by themselves alone as opposed to Spain and Poland,for example. But taken together, all these markets form an important network.
“The growth we register in these countries is very strong exceeding double-digit growth ratesabove 10% for the last few years. In contrast to other providers who are often very strong in onecountry but not present in another, we have, as the only parcel provider, a homogenous networkwhich completely covers the whole of Europe. And this is a very big advantage.”
Asked about the company’s development in Russia and the impact of sanctions on business,Chavanne replied: “The economic sanctions against Russia have increased the pace at which the oilprices have dropped. This, in turn, is slowing down the growth of the Russian economy. SinceRussian citizens import an enormous quantity of products, the negative economic growth in Russiawill, as a result, negatively impact the consumption. This is likely to partially impact the parcelvolumes of imported goods by Russians in 2015, 2016, 2017.”
He explained that DPD has been growing in Russia by more than 15% over the last five years. Butthis growth already fell to 4% in 2014. “I don’t know what the growth will be in 2015,” hesaid.
As for the sanctions against Russia, Chavanne explained that DPD’s business is not reallyaffected by that. “The economic sanctions rather have an indirect impact on us through the negativeimpact on the growth in Russia.”
Regarding the CIS countries which surround Russia, he highlighted DPD’s networks in the Ukraine,Kazakhstan and Belarus. “Even though the revenues are rather small, these countries provide quite acomplete network each with quite strong parcels growth. In particular, the growth is strong inKazakstan and Belarus. But it is more complicated in the Ukraine where the activity dropped bypractically 50% since all the events that you know about.”
Asked about the main goals of DPDGroup’s subsidiary in Russia, Chavanne replied that the countryis an integral part of the company’s overall strategy in Europe, which will be applied in the sameway in Russia as in the other countries.
Regarding the CIS countries which surround Russia, he highlighted DPD’s networks in the Ukraine,Kazakhstan and Belarus. “Even though the revenues are rather small, these countries provide quite acomplete network each with quite strong parcels growth. In particular, the growth is strong inKazakstan and Belarus. But it is more complicated in the Ukraine where the activity dropped bypractically 50% since all the events that you know about.”
Asked about the main goals of DPDGroup’s subsidiary in Russia, Chavanne replied that the countryis an integral part of the company’s overall strategy in Europe, which will be applied in the sameway in Russia as in the other countries.
“We will continue our organic growth in the country. There are quite a few players in theRussian market and we will try to grow faster than the overall market. Moreover, we ask ourselvesif, one day, we could participate in the consolidation of the Russian market,” he concluded.
Meanwhile, DPD Russia last month unveiled the results of its environmental project‘Ecoavtomobil’ (eco vehicle) as part of which it has been testing eco vehicles on natural gas inMoscow and its surroundings over the last two and a half years transporting nearly 1,000 tons ofcargo as part of the company’s commitment to environmental protection.
In total, DPD Russia transported 984.9 tons of parcels and goods using alternative fuels. Around64,400 shipments were carried on two types of vehicles – Iveco and VW Caddy. These vehicles respondto the ecological standards Euro-5 and Euro-6. Methane has been used as the type of safe fuel thatmeets the standards. During the project, each of the vehicles covered 150,000 km while using 24,800litres of methane.
The company explained that the natural gas enables it to significantly reduce the amount ofharmful emissions coming into the atmosphere as the result of engine operations. As proven bystudies, the level of emissions generated through vehicles running on methane is 60% lower than isthe case with gasoline as the gases emitted through methane contain two to three times less carbonmonoxide, two times less nitrogen oxide and nine times less smoke effects. Methane is not only goodfor the environment, but also helps extend the engine life, DPD Russia stressed.
Although the price of methane is above other fuel types, the level of consumption is lower thanwith gasoline. This reduces the service costs and allows the company to maintain competitiverates.
“We plan to continue our project Ecoavtomobil,” Andrey Mayorov, DPD Russia, General Director,said. “Our company is committed not only to improve the efficiency of service, operating systems,quality and safety standards, but also to contribute to environment protection with everydaymeasures.”
