DEUTSCHE TELEKOM LOGISTICS CONTRACT VALUED AT $900 MILLION
Danzas AG, the logistics subsidiary of German transportation giant Deutsche Post AG, said it will take in about 1 billion euro ($900 million) over the next five years from German communications company Deutsche Telekom AG under a 12-year logistics contract.
Deutsche Post and Deutsche Telekom agreed early this year to outsource to each other management of their respective logistics and communications operations. In return for the Telekom deal, Deutsche Post is giving Telekom a contract to manage the post office’s communications needs.
The Telekom business is a huge boost for Danzas, which labeled the agreement one of the largest logistics deals ever signed in Europe. Danzas has taken control of all of Telekom’s logistics facilities and shipping employees. It has formed a new company, Danzas Telelog, in Hamburg to handle the business, including warehousing and materials management services.
Danzas Telelog will manage more than 2,200 former Telekom employees working out of eight centers to oversee the movement and storage of various goods, from cable drums to electrical components. Deutsche Post chairman Klaus Zumwinkel has said Deutsche Post will use its work with Deutsche Telekom and the German army to pilot new logistics programs, including supply chain financing and technology services.