DHL completes strategic partnership transaction with Polar Air Cargo Worldwide

Staff -- Logistics Management, 6/28/2007

PLANTATION, Fla.—Express delivery and logistics service provider DHL said today it has completed the transaction to form a strategic partnership with Polar Air Cargo Worldwide Inc., a subsidiary of global air cargo services provider Atlas Worldwide Holdings Inc. 

Under the terms of this transaction, DHL Express will invest $150 million for a 49 percent stake and 25 percent voting interest in Polar Air Cargo Worldwide.

Last October, the companies initially announced they had formed a partnership designed to improve service for shippers using DHL Express that move freight between the United States and Asia.

And according to a statement issued by DHL and Polar Air Cargo, this partnership will enable DHL customers to secure long-term access to greater air capacity on Trans-Pacific air routes, as well as reduce transit times and increase delivery reliability on both sides of the Pacific. 

It also gives DHL guaranteed access to Polar Air Cargo’s aircraft capacity in key global markets for 20 years along with a potential revenue stream to Atlas Air Worldwide Holding companies of $3.5 billion. 

And DHL will also have access to additional available capacity from Atlas Air Inc, another subsidiary of Atlas Air Worldwide Holdings.

DHL Express Global CEO John Mullen said that this deal “shows that recognizing and responding to the needs of customers are a reiterative process,” adding that the company understands the “importance of broadening the scope of [its] service offerings to stay ahead of the curve in view of the increasing demand for cargo routes between Asia Pacific and the U.S.”

DHL, CA ink exclusive shipping deal
Earlier this week, DHL and CA Inc., a management software vendor and developer said they have signed off on a deal in which DHL will serve as CA’s partner for domestic and international door-to-door express and heavyweight transportation services worldwide.

CA said it made this deal, because it was looking for a single express and logistics provider that would provide its global supply chain—in more than 140 countries—with a single point of contact account management system for shipping processes.

Under the terms of the multi-year deal, DHL will oversee and manage the transportation of all CA shipments by connecting its five global distribution centers with its sales facilities.