Deutsche Bahn buys BAX Global

Apart from logistics services at home, BAX Global (2004 sales: ca. $2.4bn), known for its powerful blue-chip customers basis particularly in electronics and consumer durables, specialises in air and sea cargo deliveries covering 130 countries. It uses its own aircraft in North America and employs other carriers elsewhere. It also provides Supply Chain Management to a large extent.

Commenting on the deal, Deutsche Bahn AG Chairman Hartmut Mehdorn, said: "BAX fits exactly into our strategy and ideally supplements our logistics subsidiary Schenker. With these two companies, Deutsche Bahn will become one of the big international players in the transport and logistics business."

The combination of DB Logistics / Schenker and BAX will push up the annual trade volume of the logistics branch of Germany's number one passenger and freight rail operator to almost EUR15bn.

The acquisition will not only boost Deutsche Bahn's competitive edge in the North American markets, but will also strengthen its rank in the Middle East, the Asia-Pacific regions in general and China in particular.

Logistics consolidation

Dr. Thomas Held, CEO of Schenker AG, pointed out that with BAX, his company will gain an important portion of the air and sea transport business, which would be essential for meeting the growing demand for international supply chains. The position in the booming contract logistics business, too, would be strengthened.

Schenker AG has a staff of 39,000 at 1,100 locations. Total sales in 2004 was ca. EUR8bn.

The company is well represented in the United Arab Emirates and the other GCC countries offering a wide range of freight forwarding services in coordination with its local partners Airlink International U.A.E., Abu Dhabi, and Barwil Bahrein, one of the world's leading suppliers of port & marine services.