Danzas, a once widespread name in the global transport industry, will henceforth only exist in history books. The last offshoot, Danzas AEI Emirates, has now been completely taken over by DHL. All branches in Dubai and the Emirates, 20 in total, will now be rebranded as DHL Global Forwarding.
DHL has held a 40% stake in Danzas AEI since 1995, as part of a Joint Venture (JV). The majority of 60% was held by the Arab Al Tayer Group, which belongs to the Investment Trading Group. Last week, DHL took over the joint company completely. Prior to this, the regulatory bodies fully approved the deal. Asked about financial details, the DHL speaker remained tight-lipped, saying only that both sides decided this move.
“Marrying the best of two worlds”
1,100 employees are affected by the transfer of ownership, however DHL Global Forwarding will take over all of them. “We do not expect any layoffs resulting from Al Tayer Group’s exit of the JV, as the work processes are well established thanks to the many years of cooperation between the two companies, spanning almost 30 years,” DHL GF told CargoForwarder Global.
Amadou Diallo, CEO of DHL Global Forwarding Middle East, and Africa (MEA), commented on the integration of Danzas AEI Emirates with these words: “We are proud to carry the Danzas lineage forward and build on its distinction as the leading logistics provider in Dubai and the Northern Emirates. This acquisition will allow us to marry the best of both worlds – DHL’s global expertise with Danzas’ local heritage, to foster innovation and sustainability, and create value for our customers, employees, and stakeholders.”
Focusing on project logistics
Further to this, the executive emphasized that the Danzas integration “will enable us to expand our reach and support the growth of the logistics business in the GCC, while enhancing regional competitiveness as an economic hub.” Local market experts forecast that the step cements DHL GF’s position as a leading provider of air and ocean freight, including road and rail services in the GCC States, and paves the way for the further growth of its logistics activities in the entire Gulf area as well as parts of Africa (MEA region). In 2022, DHL Group generated a revenue of €4,161 million in MEA. The company announced new initiatives in project logistics, which is an increasingly important growth sector, especially in the UAE, but also in Saudi Arabia.
Economic transformation
In a call with CargoForwarder Global, a DHL GF manager pointed to an ongoing industrial transformation in the Gulf States. In addition to the traditional oil and gas business, the region is increasingly developing into a trade, finance and logistics center. Both local and international companies are increasingly investing in renewable energies, wind and solar farms, he explained. This fast-progressing economic transformation spurs the demand for targeted transport services, notes DHL GF. A point that is demonstrated – for instance – by plans recently tabled by drone developer, Dronamics, to set up a drone delivery network across the GCC States in collaboration with the Emirates Post Group, centered in the UAE.
DHL GF also cooperates with Etihad Rail. In MAY23, both parties concluded a long-term agreement on the use of rail capacity. As part of a JV, the logistics group can utilize the rail capacity to conduct its main operations within the UAE.
Already at the time of this decision, the name Danzas no longer played any role.
