DHL India venture to set up freight exchange

Bahwan DHL Supply Chain (BDHL), a joint venture between Bahwan CyberTek (BCT) and DHL Supply Chain plans to create a freight exchange, reported The Hindu.

The 51:49 joint venture would be an intellectual property of BDHL, where the software for the exchange would be developed by Bahwan CyberTek and freight delivery would be handled by DHL.

This agreement is an extension of BCT's seven-year contract with DHL. As per the earlier agreement Bahwan DHL was formed principally to provide fourth-party logistics (4PL) services to Petroleum Development Oman (PDO). Bahwan DHL will manage PDO's primary logistics activities of cargo haulage and transportation.

The contract also provides a framework for Bahwan DHL to provide logistics services to PDO's contractors, under the banner of secondary logistics.

A new subsidiary BDHL will be created for setting up the freight exchange. Generally, the trucks that go with cargo to the delivery point return empty and to create optimum use of these trucks, BDHL has created this freight exchange. This exchange will set up an auction centre where in other cargo agents can bid and use the service.

Since it is an extension of the earlier agreement and involves only setting up an exchange, there will be no investment involved. But the revenue from this exchange would be shared in the ratio of 51:49, says S. Durgaprasad, director and chief executive officer, BCT.
(source:www.cargonewsasia.com)