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Photo: Deutsche Post – dhl

dhl Supply Chain will acquire 100% of the Glen Cameron Group, an Australian logistics company specializing in road freight and contract logistics.

Glen Cameron Group, which operates a fleet of 1,000 trucks and trailers and employs more than 820 people in Australia, said the acquisition would “strengthen dhl‘s position in the growing Australian road freight market and create the One of the largest logistics companies in the country with total revenue exceeding A$1 billion (US$694 million)”.

dhl Supply Chain Australia and New Zealand CEO Steve Thompsett explained that the acquisition will increase dhl Supply Chain’s shipping capacity in the region for an undisclosed amount.

“This is a unique opportunity to add more high-quality shipping services to our warehouse and shipping solutions in Australia,” he said. “We look forward to providing a more comprehensive transportation service.

“dhl is known for having a strong warehouse base, and through this acquisition we will strengthen our offering through four services – Domestic National General Freight, Domestic National Express Freight, Professional Services and Contract Logistics Shipping.”

Loadstar Premium Australia-based columnist Mr Joy suggested securing road freight capacity could be the main driver of the deal. “It’s kind of weird — if dhl wants to expand its parcel coverage, why would it buy a contract logistics business instead of a carrier with a large national network?

“Unless it shifts from network to focus on contract logistics? dhl talks about general freight and express freight, but what I see this purchase doing is providing the ability to undertake those activities.

“dhl may buy Glen Cameron to gain access to drivers, trucks and trailers. In this way it can (largely) control its fate in terms of cost management (and access to capacity), given subcontracting Carriers face losses if fuel prices continue to rise and a temporary cut in fuel excise duty expires in September,” he added.