SNCF Geodis

2010

March - Geodis recently acquired Bertola to become a leading multi-business-line service provider in Italy.

Through this acquisition, Geodis is achieving critical logistics mass, doubling its storage area in Italy, where it already had 18 sites, and is gaining presence in Veneto, the country's second-most important logistics region.

With overall revenue of €400m and a workforce of more than 2,000, Geodis becomes one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contractual logistics, freight forwarding, and 4PL.

This new operation for external growth will enable Geodis to strengthen its position in several customer industries and to increase its expertise in Italy through Bertola"s customer portfolio, primarily made up of key accounts in sectors of strategic interest to Geodis (FMCG, textiles, and automotive).

Giraud is the third-largest road freight carrier in Spain, and a major player in France. It is also present in Italy and the UK. The acquisition is therefore an opportunity for Geodis to expand the geographic coverage of Geodis BM in Europe and also to increase revenue through a portfolio of loyal key accounts (automotive, retail and distribution, industry, etc.). The transaction will be concluded very quickly, after employees have been duly informed and after approval by the competition authorities, who are expected to rule on the acquisition by the end of the first half of 2010.

"For Geodis BM, this acquisition is an opportunity to build a true European network and to play a full role in the Group’s global end-to-end offering. With this new network, the revenue of Geodis BM will exceed €1bn, based on the expertise of its 5,000 employees," concluded Jean-Louis Demeulenaere, CEO of Geodis.

Speaking at the occasion, Jean-Louis Demeulenaere, CEO of Geodis, and Bruno Mandrin, Director of the Groupage Division, talked about the role and organisation of Geodis Ciblex, the Group's new "0-30 kg parcels" network.

This parcel service broadens the Group"s range of small parcel solutions, especially in e-commerce, health, optics, high-tech products and spare parts, sectors in which Ciblex plays a leading role. With a 700-strong workforce and more than 700 subcontractors, Ciblex is a specialised autonomous network able to manage late collections, up to 8 pm in Ile-de-France, for next-day deliveries before 8 am, 9 am, 10 am or midday, depending on the service required. The agreement will also round out the Geodis transport offering in Belgium.

French rail and logistics group SNCF has significantly ramped up its apparent push to try and become as important a player on the global logistics stage as German counterpart and rival Deutsche Bahn.

The group's Transport and Logistics Division business Geodis, which it bought earlier this year after previously being its main shareholder for many years (Ti Logistics Briefing, Briefing, April 7, and News, April 29), this week announced it had acquired IBM's internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi-year outsourcing contract.

Through that contract, stated Geodis, it would be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

"This agreement is strategic to reinforce Geodis' position among the world's leading logistics providers capable of delivering end to end solutions to its global clients," claimed Jean-Louis Demeulenaere, Geodis Deputy CEO.

"With this partnership, we will strengthen the skills and expertise required to service both IBM's and our existing and future clients' core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio."

Geodis said it was increasing its investments outside Europe and the new acquisition complemented the company's existing teams. "By leveraging IBM's employees in more than 50 countries across the US, Canada, Latin America, Europe and Asia Pacific, Geodis' service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion," it claimed.

Geodis said the IBM transaction, which was expected to close in the first quarter of 2009, was subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the EC (European Commission) of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.

SNCF claims that its Transport and Logistics Division is currently the fourth-largest transport and logistics operator in Europe, with annual revenue of €8.5bn.

2008

April - Directors of French international forwarder/logistics group Geodis have unanimously recommended that shareholders accept an offer for the company made by France's state railway company, SNCF, earlier this month, April 7, 2008.

In a statement, Geodis reported that its board of directors had met yesterday (April 28) to render a reasoned opinion regarding the tender offer initiated by SNCF Participations. It said the board had been provided with several reports. One, prepared by, financial advisors Lazard and BNP Paribas, concluded that the offer price was "in line with the results of the various methods used in order to determine the value of Geodis". A second, prepared by independent expert Ricol Lasteyrie & Associés, considered that the price offered was "fair for Geodis' minority shareholders".

Geodis said its board of directors believed the offer initiated by SNCF "would not adversely affect the interests of Geodis and those of its employees, and that such offer may provide the latter with better security and development perspectives than those which could arise from the status quo".

Regarding the situation of shareholders, Geodis said its board of directors had expressed an intention to tender their own shares to the offer, except the shares that must be held by each director, pursuant to the bylaws of the company, and "unanimously recommends that the shareholders of Geodis tender their shares to the public offer".

Geodis added that the contemplated timeframe of the offer (without taking into account any potential reopening of the offer) was:

• May 20, 2008: Decision of the AMF on the conformity of the offer.
• May 22, 2008: Opening of the offer.
• June 25, 2008: Closing of the offer.
• July 17, 2008: Settlement delivery.

April - France's state railway company, SNCF, looked set to become a major global logistics player following the announcement that it was to make an offer for the outstanding shares which it did not already own in French international forwarder/logistics group Geodis.

SNCF had for many years been Geodis' main shareholder and currently held 42.37% of its share capital and 45.79% of its voting rights. €135 per share was to be offered to the shareholders in cash, valuing the company at nearly €1.1bn. The offer represented a 79% premium based on the average price of Geodis' shares during March 2008.

As Geodis' management stated, the offer was part of a plan by SNCF to create an international multimodal operator in the field of logistics and transportation. Pierre Blayau, CEO of Geodis, would be in charge of implementing that plan.

SNCF's new chairman, Guillaume Pepy, also mentioned that his company was planning on buying another rail operator in the near future. The acquisition of Geodis by SNCF will bring about the company's renationalisation, undoubtedly bringing protests from the private sector.

However, French politicians see this as a necessary step to help SNCF rival its main European competitor, Deutsche Bahn, which had been highly acquisitive in recent years, for example buying up international forwarders/logistics providers Stinnes/Schenker and Bax Global.

A listed company the majority shareholder is the SNCF group with 42.37% of the shares, the free float totals 40.53%.

2007

In 2006, Salvepar's interest in the Group was further reduced from 8.59%to 5.85%. Taking these transactions into account, the free float stood at 35.44% at 31 December 2006.

2006

Listed company.  SNCF (French Railways) 43.73%, AGF Vie 9.36%, Groupe Salvepar 8.59%, Geodis Mutual Fund 5.85%. 

2007

The Geodis acquisition of TNT Freight Management partly re-adopted its old brand name, Wilson, now being known as Geodis Wilson. This represented the merger of TNT Freight Management and Geodis Overseas, which was due to be finalised by the end of 2007. Geodis Wilson is the Freight Management division of the Geodis Group.

All activities within TNT Freight Management would be conducted under the Geodis Wilson brand, excluding a few subsidiaries that are still awaiting approval for the new legal name from local authorities. As part of the merger master plan, the company intends to re-brand Geodis Overseas, the existing air and sea freight subsidiary in the Geodis Group, to Geodis Wilson before the end of this year. The combination of the merger is a separate division of the Geodis Group. The net revenue of Geodis Wilson was about €1.7bn in 2006.

As a part of the Geodis Group, Geodis Wilson would be able to offer its global customers the services delivered by the other Divisions, (Groupage, Contract Logistics, Full Truckloads), with the support of Geodis Global Solutions which is in charge of the integrated offers.

Until 2006, the Group's internal organisation was based on the following geographical regions: France, Europe excluding France and Rest of the World (Asia, Africa and Mexico). In first-half 2007, Geodis changed its structure to reflect not only the acquisition of Wilson (ex TNT Freight Management), but also the robust organic expansion of its networks businesses. The new structure is based on the following four business divisions:

• Groupage
• Freight Forwarding
• Contract Logistics
• Full Truckload

2006

In November 2006 TNT N.V. announced that it had signed a deal to sell its freight management business unit to Geodis. The transaction had a value of €460m, cash and debt free.

The acquisition of TNT Freight Management (TFM), can be considered a strategic move for Geodis for a number of different reasons: 

1. It enables Geodis to double the size of its freight forwarding business (air and sea freight), which has become increasingly important in customers' demand for international logistics services. This is a high potential sector with extremely good prospects for growth.
2. Geodis and TFM complement each other, both in terms of geographical coverage and customer portfolio, which offers the new Group a whole host of opportunities for development.
3. The acquisition allows Geodis to redistribute its core business portfolio as follows: freight forwarding (35.6%), distribution - groupage & express - (35.5%) and logistics & transport (28.9%). 

The acquisition also gives Geodis the means to step up its international development and benefit from opportunities to grow.

It is the first major purchase by GEODIS for many years after a period when management focused on the turnaround of its business. Previously much of GEODIS' forwarding business had been undertaken in partnership with German operator Rohde & Liesenfeld. It is unclear how this relationship will be affected.

2005

Moving into Eastern Europe and Asia

In a bid to ensure the success of its customers' international strategies, Geodis Group has set up sites in Slovakia, Hungary, Romania, Poland, Czech Republic and the CIS. In Asia, they work in ten countries while a further ten are covered by exclusive partnerships.

Geodis Shenzhen a subsidiary since 2004 was one of the first non-Chinese logistics companies to obtain a "Permit A", which is essential for enterprises wanting to operate in the country and invoice independently for all services provided.

They also boosted their sales and marketing abroad with the creation of Geodis Solutions Asia, a cross-divisional entity that co-ordinates business development and logistics solutions design in the region.  These efforts have already begun to pay dividends as the company has signed contracts with Daimler Chrysler Malaysia, Morgan and Metro Levistone.

Reverse Logistics, a strategic platform for growth

The Group has been developing its expertise in this field particularly through its specialised subsidiaries such as Geodis Valenda (Automobile), Geodis Euromatic G2R (Hi-Tech), BM Pack Service (Chemicals) and its dedicated European sites, in Mainz (Germany) and Busnago (Italy).

The joint-venture created last in December 2004 with SITA strengthened Geodis' position, ranking it as one of the top European operators in Reverse Logistics today.

This strategy has begun to bear its first fruit: ERP (European Recycling Platform), a joint-venture founded by Braun, Electrolux, HP and Sony, entrusted Geodis with the design, implementation and coordination of its recycling operations for current and end-of-life products in France, the United Kingdom, Ireland, Spain and Portugal.

2005

Historic Freight Forwarding Strategy as TNT

TNT acquired major Scandinavian forwarding company, Wilson Logistics Group in 2004. The company paid in the region of SEK 2.35bn (€257m) and the deal was financed from cash reserves.

Wilson has a strong global freight forwarding network in 28 countries. With revenues of approximately €714m in 2003 and more than 2000 employees, the acquisition of Wilson will provide TNT with forwarding capabilities which it previously lacked.

It had been known for some time that TNT was looking to buy a forwarding company in order to provide clients with a comprehensive portfolio of logistics services. By doing so the company is following in the footsteps of DPWN which acquired Danzas, AEI and ASG as well as UPS which purchased Fritz in 2001. TNT is active in several vertical sectors which increasingly require global forwarding capabilities such as automotive and high tech.

2004

The strategy of Geodis throughout the late 1990s was to expand its capabilities and geographic scope though an extensive acquisition programme. These included Cavewood, United Carriers, Borghi, Vitesse, Extand and Zust Ambrosetti.

However the acquisitions were not as successful as the company had first hoped and the group started to make losses. This was in part due to the poor performance of individual operating units (such as United Carriers) and partly due to the lack of integration, which could have unlocked network value. This led to a number of disposals as the company sought to re-build its capital and focus around profitable units.

In 2002 Geodis launched the 'Horizon' project as a master plan for the whole group. Its goal was to redefine the company's offering, streamline related processes and re-engineer core business information systems accordingly by 2005. In effect this was an integration plan to bring together all the companies which it had acquired into what Geodis referred to as a 'federation'.

The first stage of the project brought about the development of standard products for the different core businesses, available in all markets in which the company was present, as well as keeping a number of country specific products. Processes and information systems were also mapped.

Whilst integrating the various companies it had bought there was little opportunity for further acquisitions, especially when management was focused on turning round the financial performance of the company.

Therefore instead of expanding its freight forwarding capabilities through acquisition like many of its competitors, Geodis decided to entered into a strategic alliance with German freight forwarder, Rohde & Liesenfeld.

One area in which it has continued to expand however has been Central & Eastern Europe in order to take advantage of the accession of the new states to European Union. The company now has operations in Poland, Slovakia, Hungary and the Czech Republic as well as in non-EU countries: Russia, Belarus, Ukraine, Romania.

Geodis" development strategy has not ignored Asia Pacific where it established Geodis Solutions Asia, a cross-divisional entity that coordinates business development and logistics solutions design in the region. It is also present in China.

Functionally Geodis has been developing its expertise in the reverse logistics sector, particularly through its specialised subsidiaries such as Geodis Valenda (Automobile), Geodis Euromatic G2R (Hi-Tech), BM Pack Service (Chemicals) and its dedicated European sites, in Mainz (Germany) and Busnago (Italy). It created in 2004 a joint venture with SITA, a leader in the management and treatment of current and end-of-life products.

On a corporate level perhaps one of the most important developments has been the increase in free float as Salvepar has reduced its holding from over 27% to just under 9%. SNCF, the French Railways, remains the largest shareholder with 44.7% of the total stock.

SCO

In December 2008, Geodis announced the acquisition of IBM Global Logistics now renamed Geodis SCO, IBM's global logistics management platform. This acquisition involved the purchase of 58 businesses in various countries. Since March 2009 Geodis SCO contributed negatively to Group operating profit in the amount of €12.6m. The acquisition contributed to a revenue increase of €531m. 

Geodis has now absorbed a €1bn/year business reinforcing its geographic coverage by integrating more than 1,200 people in 58 countries, 80% of them outside Europe.  

As IBM’s sole logistics service provider worldwide, Geodis controls inbound and outbound transport, manages customs issues for IBM servers, manages spare parts and reverse logistics. 

Source: Geodis

2007

At the end of January Geodis gave an early indication as to the state of the European freight industry in 2007 and prospects for 2008.

Headline revenue for the full year 2007 was up 26.4%, including its acquisition of Wilson from TNT, and 5.4% on a like-for-like basis. Management commented that the group's performance was lifted by a very strong third quarter and sustained growth in the fourth quarter. All business divisions contributed to the increase.

Geodis' groupage revenue (37% of the total) rose 5.3% compared with the previous year. Its French home market revenue experienced a 7.2% rise at €1,426m. Volumes continued to grow in the second half, while price rises, mainly from passing on higher diesel costs, also contributed to the increase.

The group's Euromatic division and groupage businesses in other European countries contributed €360.1m to consolidated revenue, down 5.2% compared with 2006. The decline was mainly due to the discontinuation of loss-making operations in Germany and a December strike by Italian road hauliers.

The freight forwarding division, including Wilson from February 2007, reported a doubling of revenue, helped by like-for-like growth of 10.3%. Asia saw revenue grow 32% like-for-like to €441m, whilst in southern Europe the division generated revenue of €663.9m, an increase of 8.7% like-for-like. Management stated that it considered the operational integration of Wilson now complete.

Contract logistics revenue for 2007 rose 4.4% on a reported basis and 4.1% like-for-like. The rapid expansion of automotive logistics business and the start-up of new contracts in the second half helped to lift revenue for the year to €832.7m.

Full truckload revenue, corresponding mainly to Geodis BM's road haulage operations, totalled €584.7m, unchanged from the previous year.

The results are a good sign for other European logistics operators in Geodis' peer group such as DSV, Schenker and DHL. They show that there is as yet very little sign of a consumer-driven slowdown. Geodis' comments about a solid fourth quarter offer encouragement that fears of a European recession on the back of US economic weakness are possibly being over-played.

In March 2007 Geodis published its annual results showing a big recovery in both profits and revenue growth. Revenue increased 5.3% over the year to €3.8bn, but operating profits increased 24.6% to €106.4m whilst net income increased by a third to €48.4m.

Cost cutting played a substantial part in the increased profitability of the company, with the previously loss-making business in Italy breaking even. In positive terms, Geodis' growth businesses were its transport activities - LTL, Express and Freight Forwarding.

The tough French road transport market was delivering growth, whilst Geodis Express activities were being helped by its new relationship with FedEx. Geodis was also experiencing growth outside Europe, particularly through its Freight Forwarding business, although the exposure to East Asia should not be exaggerated as it accounts for only €200m of revenue.

Contract logistics appeared to be doing less well with falls in revenue over the year and the company stating that both the core high tech and automotive sectors were doing poorly.

In announcing this year's results, Geodis' management restated a target of 40% growth in revenue by 2007 and a profit margin target of 4%. The revenue target will be helped by its purchase of TNT's Freight Forwarding operations in the last quarter of 2006, not included in these results.

With the acquisition Geodis became one of the world's top ten Freight Forwarders with combined revenues of €1.6bn. However what this will do for return on capital is unclear as Geodis paid a generous €460m to buy TNT's Freight Forwarding operations . 

The company does suffer from a lack of differentiation and lacks global presence compared to its bigger German rivals. Normally this might lead Geodis to be vulnerable to takeover - possibly from a group as openly acquisitive as Deutsche Bahn or even from a Private Equity group which could inject capital in order to expand through acquisition but this was unlikely to happen.

Geodis was still part owned by SNCF, the French state owned railway company and although SNCF may well be willing to sell its 44% stake in part or in its entirety, any buyer would have to be approved at the political level. The government has in the past opposed the sale of French businesses to acquisitive foreign rivals, majorly reducing the number of companies which could be interested.

The consolidated financial statements of June 30th 2007 will include 5 months of TFM results.

In France, annual growth was supported both by high volumes in Groupage (LTL) and Express in the last quarter of 2006 and by air and sea freight forwarding business. The reduction of volume in contract logistics in the high tech industry and the slowdown of automobile production partially offset these sources of growth.

In Europe, annual revenue increased by 3.2%. According to management, Italy turned the corner in 2006, showing positive growth. At the same time, development of new contracts in Eastern Europe and Germany continued. Trends of the prior quarters in high-tech contract volumes weighed on revenue in Benelux and the United Kingdom.

Source: Geodis

2007

Performances were very uneven across the division in terms of both growth and profitability.

Whereas Groupage in Europe saw revenue decline in 2007, Groupage in France continued to enjoy sustained revenue growth of 7.3%, mainly due to:

• Further growth in volumes, particularly in the first half of the year
• The full-year impact of new contracts, especially the FedEx contract
• Price adjustments in France following the sharp increase in diesel prices and the cost impact of adapting the Express transport plan to new speed limits applicable to the types of vehicle used.

Owing to these effects, Groupage in France generated revenue of €1,426m, up €96.9m from the previous year. Profit from ordinary activities in France, corresponding to the Calberson network and France Express, stood at €61.0m, representing an operating margin of 4.3%. The 2007 figure was stable with respect to the €60.9m reported in 2006. Operating margin was down compared to 2006 due to new contracts start-up costs and the cost impact of adjusting the transport plan to new speed limits.

In a continuation of the previous year's trend, Groupage in Europe reported a profit from ordinary activities loss of €20.6m for revenue of €286.1m compared with a loss of €17.8m for revenue of €288.9m in 2006.

In Spain, the loss amounted to €9.7m for revenue of €78.6m. Local managers were replaced during the first half of the year and a restructuring plan was implemented in the second half. Most of the major operational difficulties concerned the Barcelona branch.

In Italy, revenue was down by 3.4% due to the impact of the Italian transport workers' nationwide strike in December. Despite the strike, a less pronounced loss of €4.6m was reported in 2007, versus €6.0m in 2006.

In Germany, the Groupage business was terminated on 31 December 2007 after generating a €2.6m loss in 2006 and a €2.9m loss in 2007 for revenue of €8.2m.

While the Euromatic specialised distribution network saw a bigger €5.7m loss in 2007 (€3.4m in 2006), the business seemed to be on the way to recovery, with a smaller loss reported in the second half than in the first.

Source: Geodis

2007

• Further growth in volumes, particularly in the first half of the year
• The full-year impact of new contracts, especially the FedEx contract
• Price adjustments in France following the sharp increase in diesel prices and the cost impact of adapting the Express transport plan to new speed limits applicable to the types of vehicle used.

Source: Geodis

2007

• The consolidation of Wilson over the eleven months from 5 February 2007 gave a material boost to Group operating profit.
• The initial impact of synergies arising on the new network’s creation added roughly €3m to operating profit.
• The 10% like-for-like increase in revenue and the elimination of loss-making facilities in Asia raised the operating profit level of Geodis’ Asian subsidiaries.

Source: Geodis

2007

Source: Geodis

2008

Group revenue amounted to €25,188m in 2008, for an increase of €1,628m compared to 2007. The 7% increase was attributable for €375m to the external growth of the Transport and Logistics division (primarily the 2008 acquisitions of Rohde & Liesenfeld, ITL, Oughtred & Harrison and the consolidation of Wilson over 12 months). 

The organic growth of the other divisions breaks down as follows:

• Infrastructure and Engineering: €282m, 6%
• Local Transport: €427m, 7%
• Passenger France Europe: €553m, 8%.

Current operating profit stood at €980m.

Group revenue amounted to €23,691m for 2007, an increase of €1,733m compared to 2006. The 8% increase is attributable for €806m to the acquisition of Wilson and for the remainder (+ 4.3%) to increased activity in the various divisions:

• Passenger France and Europe: + €348m, + 6%;
• Local Transport: +€214m, + 4%;
• Transport and Logistics: + €1,049m, + 16% (+ €243m excluding Wilson revenue);
• Infrastructure and Engineering: + €87m, + 2%.

Source: SNCF

2008

Acquisitions in 2008 (Rohde & Liesenfeld, ITL, Oughtred & Harrison) and 2007 (Wilson) highlighted the Transport and Logistics division results. These acquisitions contributed €375m in revenue.

Excluding the Group structure impact, revenue was stable (increase of €24m, or 0.3%):

• Global Offering: growth was driven by the acquisition of R&L.
• On a constant Group structure basis, activity increased by 2% due to growth over the first three quarters of the year, before posting a decline in the fourth quarter because of a net deterioration on the economic front. The decline involved all businesses and particularly Parcel Delivery, Freight Forwarding and the iron activity of STVA.
• Rail Transport: the €133m decline in SNCF Freight traffic revenue over the last quarter was partially offset by the consolidation of ITL (€35m) and the organic growth of Naviland Cargo (€16m).

2007 was marked by sharp growth in activity and a major improvement in the results of the Transport & Logistics strategic division.

Geodis' contribution to Transport & Logistics revenue totalled €4,782m, up 26%, and breaks down as follows:

• the consolidation of Wilson as from February 2007 representing €806m,
• continued development of international flows,
• sustained French domestic flows in Parcel Delivery and Express activities,
• strong sales momentum in Eastern European countries.

•  Asian subsidiaries: growth in revenue at the same time as the removal of loss-making centers,
• Eastern European countries: new contracts in the automobile industry,
• closure of the loss-making site in Russia and improved use of logistics agreements in Hungary,
• Bourgey Montreuil: appropriate repercussion of cost increases (diesel).
• SNCF Freight and TLP subsidiaries

• the automobile sector where the group gained market shares, including STVA abroad,
• the rail-road combined transport sector, whose appeal is evident at SNCF Freight, Naviland Cargo and Rouch Intermodal,
• greater leasing of vehicles and rolling stock (early impact for SIBELIT),
• various European markets (development of France Wagons' customers).

Source: SNCF

2010

The SNCF Geodis division strengthened its organisation around its three primary businesses, freight forwarding/logistics, rail freight and rail freight fleet management: 

• the Supply Chain Optimisation (SCO) division, arising from the acquisition by Geodis of IBM Global Logistics, that started up on 15 March 2009;
• the Akiem business, locomotive leasing and management firm;

• acquisition of 3 parcel delivery and express agencies from the Mory group (1 June 2009);
• acquisition of businesses from the parcel delivery and express firm Cooljet (1 October 2009);
• acquisition of 2 logistics firms in Italy, SCRI and Sincrolog (mid-May 2009);
• acquisition of Giraud's activities involving Eastern countries and the steel industry.

• increase in the investment in Novatrans from 39.91% to 96.39% (1 November 2009);
• Veolia Cargo Germany, Netherlands and Italy (30 November 2009). 

• Groupage and express
• Freight forwarding - air and sea transport services
• Logistics - local storage, high added-value services, reverse logistics
• Road - transport of full loads
• Global coverage

These services are delivered worldwide every day by operating entities grouped into three main units:

1. Geodis - comprising six business lines (freight management, groupage and express, contract logistics, full- and part-load road transport, logistics and transport of finished vehicles, management and optimisation of the supply chain)
2. Freight transport by rail (rail companies, combined transport and rail services)
3. Asset management (long-term leasing of wagons, tankers, containers and train engines)

The Geodis group is divided into 5 core business division:

• Geodis Calberson - Groupage and Express
• Geodis Logistics - Contractual Logistics 
• Geodis BM - Road division
• Geodis Wilson - Freight Management Division
• Geodis Global Supply Chain Optimisation

The integration of Geodis has inspired a reorganisation of the Transport and Logistics division into 4 centres:

• Geodis - offering integrated logistics operator in 120 countries
• STVA - vehicle logistics specialists
• rail transport - including Fret SNCF (SNCF Freight)
• asset management - taking care of wagons and locomotives

Thanks to Geodis, the Business Unit has become a worldwide network using a variety of modes of transport, including:

• road (31% of business)
• rail (28% of business)
• sea (16% of business)
• air (10% of business)

The Transport and Logistics division is focusing on big international clients. In 2008, has obtained rail license in the UK via Fret Europe UK and in Poland via ITL Polska.

2010

Geodis Wilson, the Freight Forwarding Division of Geodis since November 2008, has an integrated network spanning 50 countries and 6,000 employees. Its offering includes air and sea freight forwarding, management of major industrial projects and customs solutions.

It manages and oversees a range of freight forwarding operations for air, sea and sea-air freight, combined with track and trace tools and value-added services. The integrated solutions are tailored to the specific needs of shippers in each sector: pharmaceuticals, consumer and retail goods, high-tech, aviation, automotive, oil and gas. Value-added services include: bonded transit platform, controlled temperature transit platforms approved for health products, KPI management, consulting etc.

Geodis Wilson also provides turnkey solutions for international projects and industrial projects (installation of offshore pipelines, relocation of industrial plants, out-of-gauge transport and more).  They also provide consultancy services and full management of global flows for companies of all sizes.

The freight forwarding division, including Wilson from February 2007, represents approximately 35% of consolidated revenue with a doubled freight forwarding capacity. During 2007 Geodis Wilson replaced it's network of agents, establishing it's own presence in the United States, South America, India, Australia and New Zealand. The Geodis Wilson network operates directly in 41 countries and has 5,000 employees. The group is split into six geographical regions- Scandinavia, Central Europe & the Middle East, the Americas, Southern Europe & Africa, Northern Asia and Southern Asia and the Pacific (Including the industrial projects businesses). The groups Headquaters is located in Amsterdam, it's strongest geographical regions are those of Asia and Scandinavia.

2010

Geodis Calberson has a network of 154 sites covering 25 countries in Europe, and employed approx 11,600 staff in 2009. Its offering is based on a wide range of services: groupage, express, parcels, part and full loads and specialist distribution. These services rely on four distinct networks:

1. Geodis Calberson - groupage
2. France Express - domestic express transport
3. Geodis Euromatic - specialist distribution Parcel network - with the acquisition of Ciblex, this service meets the needs of e-commerce, as well as the sectors of health products, optics, advanced technology and spare parts.

2008

2010

In 2009, Geodis Logistics employed 5,300 employees across 200 sites, with 3m sq m of warehouse space.

Up to 2008 the contract logistics division achieved strong growth in France, the Benelux, the Eastern Europe countries and the automotive and reverse logistics sectors. The division reported revenue of €832.7m, an increase of 4.4% on the 2006 result.

2010

Geodis BM, the road division of Geodis, is based at 77 sites in France and across Europe, has 350,000 sq m of warehouse and logistics space, a fleet of 6,000 vehicles and employs some 4,000 staff (including 2,500 drivers and 600 in logistics activities).  Its fleet includes: 1,700 tractors, 400 rigids and 3,100 semi-trailers (including 800 tankers).

The company has a sector-based organisation structure to target individual business sectors, the five divisions are: retail, chemicals-gas, automotive, industry and press.

Its focus for 2010 is on three main areas:

1. road and combined transport,
2. corresponding logistics, and
3. 3PL flow management.

• Geodis BM Multimodal, from transport to combined - Geodis BM has since 1 January 2010 brought its customers a new combined offering.  Geodis' road division provides its customers with a fleet of swap bodies and a structured transport plan.
• In 2010, 60% of the fleet will be equipped with onboard IT systems enabling better monitoring of CO² emissions.
• Investment in R&D has two main innovation areas: flow logistics (warehouse management, cross-docking, local logistics, etc.) and road transport (public transport management, recurring activities, 3PL flow management, delivery tracking, route optimisation, onboard IT, etc.).

2010

The role of the Supply Chain Optimisation Division is to optimise the supply chain of international customers, in part or in full by implementing a management solution and calling upon partners whenever necessary.

This new offering is based on the integration of global solutions at each stage of the supply chain and for each geographical region, by a partner selected to provide a service with the best guarantees of excellence and competitive performance.

It is based on a network of 1,500 employees in 50 countries worldwide, a Control Tower for all operations, management of more than 500 sub-contractors and €1.5 billion in transport and logistics purchases.

2010

March - Geodis Wilson has opened a new airfreight office in Dubai.  In the first of three service developments this year in the United Arab Emirates, global forwarder and logistics services provider Geodis Wilson has opened a new airfreight office in Dubai to support increasing demand for this service mode as well as its advancing sea-air product.  Based in Dubai's busy Cargo Village, the new office will employ 22 people.

2009

The secure platform, dedicated to national and European express, was located south-east of Lyon, next to the A46 motorway. The site covered an area of 12,000 sqm with 168 gates and could process and sort 2,400 parcels per hour.

The platform would provide daily lines to many destinations throughout Europe as well as enabling next-day delivery before midday to 36,000 cities in France, with 90 daily departures.

"Through this investment, Geodis Calberson and France Express confirm their commitment to strengthening their leadership in Express for the manufacturing sector," said the Vice-President, Groupage Division.

Geodis Wilson already meets the demands of oil and gas, engineering, drilling and engineering procurement contractors (EPCs) based in the Houston area, providing a one-stop shop for transport management by truck, barge, air and ocean, as well as offering order expediting, customs brokerage, storage and inventory functions, materials management and distribution.  It serves as a national center of excellence for the US and will service projects through other areas, including the eastern seaboard and Pacific coast.

Essential in serving this sector is provision of an industrial packing capability, which Geodis Wilson’s Industrial Projects Division meets through its own 65,000 sq ft (6,000 sq metre) packing and temporary and long-term storage warehouse close to Houston Airport, complete with two acres of outside area for marshalling heavy plant and project equipment. Supplementing this facility, a mobile packing team will service projects at the docks where necessary.

In tandem with the technical and commercial capabilities required, the division also provides the wider expertise and support now demanded, ensuring control of infrastructure at both ends of the operation.

Geodis Wilson sees further potential development in the industrial projects activity, which has been strengthened by the acquisitions of TNT Freight Management and Rohde & Liesenfeld, attracting raft of new clients worldwide. Revenues have doubled over the past three years and further expansion is anticipated over the next five years.

The Geodis Group

Groupage

The Groupage division offers three different services: domestic groupage, letters and parcels (in cooperation with La Poste) and international groupage (consolidate shipments of 3 tonnes or less). Within this division the main brands include: Calberson, Bernis, United Carriers, Cavewood, Dusolier, France Express, MG Transport, Teisa, Walbaum, Züst Ambrosetti. Geodis has improved its relative position on the market and strengthened its status as the market leader for this business in France.

Full truckloads

This division deals with the transportation of miscellaneous full loads (Automotive, Press & Airfreight, Bulk Distribution, Chemicals and General Cargo) with operating units in France, Italy, Germany, Belgium and the Netherlands. Its main brands include: Bourgey Montreiul, Sceta Transport and Van der Laan. The pursuit of net sales gains, in particular in its General Cargo and Automotive activities, contributed significantly to a net sales growth of 3%.

Logistics        

The division, which includes Dutch-based Vitesse and Italian Borghi, works for clients from a wide range of industry sectors. It offers services in the inbound, outbound and after sales logistics sectors.

Overseas

The Overseas division is the freight-forwarding unit of Geodis. It recently entered into a global alliance with Rohde & Liesenfeld, a German freight forwarder of a similar size. Geodis during 2003 set up a subsidiary in Indonesia, following agreement with its local partner. The Group's unprofitable and non-strategic logistics operations in Argentina and International Freight Forwarding operations in Mexico were discontinued in 2003. In March 2003, Geodis sold in full its stockholdings in Züst Ambrosetti Far East to the Dachser Group. 

Geodis is mainly a French focused business with over 69% of its revenues generated in France. The Geodis Group is split into six seperate operations which deliver its products and services:

• Geodis BM
• Geodis Calberson
• Geodis Logistics
• Geodis Vitesse
• Geodis Wilson
• Geodis Zust Ambrosetti

Geodis BM

Activites

Full and part truck loads, transport on request, dedicated transport, rentals, direct flows or flows via platforms, distribution and inter-site/Europe rounds.

Key Figures

• 4,000 employees
• Network of 77 operational sites in France and Europe
• Five divisions
• 350,000 sq m of warehousing capacity
• 1,700 tractors
• 400 rigids
• 3,100 semi-trailers (including 800 tankers)
• Activity in the following sectors Chemicals, General Cargo, Mass Distribution, Press and air market, Automobile.

Subsidiaries

• In France : Begey, Beugniet, Foissin, Schuhler & Nestra, Sotrago, Telf, Transeurochem, Transnord.
• Abroad : Belgitrans , Road Flight Systems, Van Der Laan Transport B.V, Bm Deutschland, Bm Espana, Bm Italia.

Geodis Calberson

Activities

Groupage and Express, national and international focused in France.

Key Figures

• 204 branches
• 9,750 Employees
• 4,500 Vehicles
• 28m shipments annually
• Activity in the following sectors: Automotive, publishing, equipment, cosmetics, FMCG, printing, IT, multimedia, healthcare,sport and leisure, wines and spirits, mail order.

Calberson's Main Subsidiaries

Geodis m.g.transports, Geodis Walbaum, Geodis Dusolier Calberson, Geodis MPL

Geodis Logistics

Activities

Global logistics, coordination of procurement flows for distribution: inventory management, order picking, JIT production line deliveries, kitting, customisation, assembly, cross-docking, after-sales management / Europe.

Key Figures

• 6,000 employees
• 150 European platforms
• 3m sq m of wareshousing capacity

Main Subsidiary

Geodis Logistics Euromatic

Geodis Vitesse

Activities

European and national groupage, global logistics, supply chain management, air and sea freight activities focused in the Benelux countries.

Key Figures

• 1,000 employees
• 13 sites
• 90 vehicles
• 11,000 sq m for cross docking
• 284,000 sq m of warehousing capacity
• 6,400 customers

Geodis Wilson

Formerly Geodis and TFM's network coverage is predominantly based in Europe, with an historical focus on Scandinavia through TFM's roots as Wilson Logistics. Geodis had a much more Southern European focus, which leads to a more balanced coverage. 

Both companies had a presence in Asia Pacific across the region. TFM gave Geodis a much greater presence in Australasia and both companies had operations in China. Although it has operations in this growth market, it lacks the scale which many of its competitors possess.

TFM gave Geodis much needed presence in the US and the Latin American region. TFM had offices across the US including the West Coast.  It has also added presence in Brazil, which has a large potential market.

Geodis Zust Ambrosetti

Activties

National and European groupage, air and sea freight activities, logistics, multimodal services focused in Italy.

Key Figures

• 57  national distribution sites
• 11 warehousing sites totalling approximately 1m sq m
• 1,200 employees.

TNT Freight Management Business Overview 2006

TNT established their global freight management capabilities in 2004 with the acquisition of Wilson a freight management business comprising primarily of air and sea freight transportation.   

Prophetically freight management was described as an "attractive standalone business which had economic resilience.”   

In general, freight management operators do not own assets to provide transportation services because they acquire cargo space from airline and shipping firms. The asset-light profile of freight management provides flexibility to adjust to changes in volumes.  

They expected that the addition of freight management capabilities and expertise would enable them to offer knowledge, skills and value added activities to a larger potential customer base while at the same time providing existing customers with a broader service offering. 

At the time the acquisition of Wilson was seen as a major step in TNT becoming a global freight management company and Wilson was re-branded into TNT Freight Management as of July 2005.  

The global network operated from 130 offices in 28 countries with a significant presence in the Nordic region.  They had planned to continue to grow their freight management capabilities organically and increase the density of their operations in the Americas and Asia.  

TNT Freight Management Nordics 2005

In this region (Sweden, Denmark, Finland and Norway) they offered, in addition to air and sea freight services, services tailored to the demands of the marine industry.  They provided freight management services to sailing fleets, shipping companies and ship management companies.  The global fleet of merchant and cruise ships is expanding, which combined with limited shipyard capacity, provides opportunities for freight management operators with marine industry experience.  

They had a broad client base including customers in the automotive, airline, consumer goods, electronics and marine industries.  TNT Freight Management had a significant presence in Sweden and Denmark, which they believed are markets dominated by a few global freight management companies.  The majority of their business is in exports, however, air and ocean import volumes from Asia, particularly China, were strong in 2005. 

TNT Freight Management Europe 2005

In this region (Europe excluding Nordics) they offered sea-air combined services in addition to air and sea freight services.  The sea-air combined service was a time saving and cost saving transport mode for import shipments from 14 countries in the Far East and South-east Asia.  This mode of transportation was faster than sea freight and less costly than airfreight.  They had a broad client base including customers in the automotive, pharmaceuticals, consumer goods, electronics and marine industries. 

Airfreight from Asia continues to increase, which had also resulted in growth in the sea-air service.  Business with several large new customers was started in 2005. This new business had complex traffic flows involving suppliers in multiple European countries. Competition in this region came primarily from freight management companies with large global networks.  

TNT Freight Management Asia/Pacific 2005

The operations in this region were primarily related to air export. Volume growth from China was a significant factor in 2005, and this trend was expected to continue.  New business was obtained from customers in the pharmaceutical and consumer goods industries. They received a trading licence for their Shanghai office that allowed it to arrange shipments directly with air and sea carriers rather than through agents.  They were continuing to pursue trading licences for other areas within China. 

TNT Freight Management Americas 2005

2010

July - The European Commission (EC) approved, in accordance with the EU Merger Regulation, the acquisition by Geodis of sole control of Giraud, an international road freight group.

In a statement issued last week, the EC said it had concluded that the transaction "would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it".

The EC explained that Geodis was a global logistics chain and goods transport operator active mainly in France. It was a subsidiary of SNCF-P, a holding company which managed SNCF's shareholdings, particularly with regard to rail freight transport, combined transport, freight wagon hire, resource management and port handling. Giraud was an international road freight group active in commissioning freight forwarding, logistics and road freight services in Europe.

"By the notified transaction, Geodis aims to acquire sole control of the four areas of the Giraud group's activity (Central and Eastern Europe, steel industry, northern Europe and France, and southern Europe). There are no significant overlaps between the parties' activities," stated the EC.

"The proposed transaction will result in a vertical relationship between, on the one hand, SNCF's rail freight transport services and, on the other, Giraud's land‑based freight forwarding activities (including freight forwarding by rail and road).

"The Commission has examined the effects of the proposed transaction and confirmed that there would be no incentive for SNCF to restrict access to its rail transport services following the merger because Giraud specialises in commissioning road transport, and because there are strong competitors in the freight forwarding sector who are important clients of SNCF."

April - Geodis' acquisition of French parcels company Ciblex, announced on 17 March, was closed on 22 April, with Ciblex becoming an integral part of the Groupage Division of the Geodis group. Ciblex will provide the Group's new "0-30 kg parcels" network.

The parcel service would broaden the Group's range of small parcel solutions, especially in e-commerce, health, optics, high-tech products and spare parts, sectors in which Ciblex plays a leading role. With a 700-strong workforce and more than 700 subcontractors, Ciblex was a specialised autonomous network able to manage late collections, up to 8 pm in Ile-de-France, for next-day deliveries before 8 am, 9 am, 10 am or midday, depending on the service required. The agreement will also round out the Geodis transport offering in Belgium.

March - Following the acquisition of Giraud's Steel division and Central and Eastern Europe division in July 2009, Geodis had entered into exclusive negotiations to buy its two remaining divisions, Northern Europe and Southern Europe (full and partial truckload road transport). The company said this would allow it to expand its European coverage, particularly in Spain. Giraud was the third-largest road freight carrier in Spain, and a major player in France.

Geodis commented that the transaction would be concluded very quickly, after employees had been informed and after approval by the competition authorities, who were expected to rule on the acquisition by the end of the first half of 2010.

"Giraud's corporate culture is close to ours," said the director of the Geodis Road division. "It has a centralized organization, strong culture of operational excellence and management tools that are similar to ours. These factors, along with our successful experience with the Steel division and Central and Eastern Europe division, augur well for a successful integration."

"For Geodis BM, this acquisition is an opportunity to build a true European network and to play a full role in the Group's global end-to-end offering. With this new network, the revenue of Geodis BM will exceed one billion euros, based on the expertise of its 5,000 employees," concluded the CEO of Geodis.

In addition in early March Geodis SA announced the acquisition of BSL Bertola Servizi Logistici S.p.A. Based in Pavia, Italy, BSL provides warehousing and logistics services to the consumer goods, textiles and automotive industries. Bertola provides contract logistics services from its base in Veneto, Italy. Terms were not disclosed.

March - Geodis acquired Ciblex, France's fourth-ranked groupage operator and a specialist in small parcel express delivery. Geodis said that it was pursuing several objectives through the acquisition.

It wished to:

• Reinforce its position in the parcel service, a market that had developed considerably over the last few years mainly with the growth of e-commerce in which Ciblex was a leading operator.
• Develop its technical expertise specific to parcel processing, relying on an independent network of more than 700 service providers.
• Improve its value-added services offer that met the needs of the Group's customers mainly in the sectors of e-commerce, healthcare, optical, high tech and spare parts.
• Complete the Geodis transport network in Benelux.

The director of the Groupage/Express division, said: "I would like to welcome the Ciblex teams, who share the same values, quality of service and respect of commitments, which are vital for our customers."

The deputy CEO of Geodis, concluded: "I am very pleased with this acquisition, which is part of our strategic priorities and enables us to enrich our global European service offering with specific expertise that will attract our international customers."

2008

December - SNCF had significantly ramped up its apparent push to try and become as important a player on the global logistics stage as German counterpart and rival Deutsche Bahn.

The group's Transport and Logistics Division business Geodis, which it bought earlier this year after previously being its main shareholder for many years announced it had acquired IBM's internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi-year outsourcing contract.

Through that contract, stated Geodis, it would be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

"This agreement is strategic to reinforce Geodis' position among the world's leading logistics providers capable of delivering end to end solutions to its global clients," claimed Geodis Deputy CEO.

"With this partnership, we will strengthen the skills and expertise required to service both IBM's and our existing and future clients' core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio."

Geodis said it was increasing its investments outside Europe and the new acquisition complemented the company's existing teams. "By leveraging IBM's employees in more than 50 countries across the US, Canada, Latin America, Europe and Asia Pacific, Geodis' service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion," it claimed.

Geodis said the IBM transaction, which was expected to close in the first quarter of 2009, was subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the EC (European Commission) of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.

SNCF claims that its Transport and Logistics Division is currently the fourth-largest transport and logistics operator in Europe, with annual revenue of €8.5bn.

June - Geodis Wilson, the forwarding division of French European logistics group Geodis, strengthened its growing business in the UK with the acquisition of Oughtred & Harrison Shipping. Geodis Wilson said that the move would boost its ocean export business and extend its global network coverage in China and Benelux.

O&H Shipping was an air and sea freight forwarder with almost 100 employees, mainly based in northern England, but also in Belgium and China. Serving more than 1,900 customers, O&H would deliver about £35m (€44m) to the Geodis group's net sales.

"The O&H acquisition is an important step in our long term growth ambition and strengthens our presence in the market," commented Geodis Wilson. "The eventual merger of our two companies brings us closer to achieving our objective of being a top five freight management company in the UK. Both from a geographical and from a functional point of view, there are no essential overlaps, which will lead into a straight integration process that will be completed within the next 12 months."

According to Geodis Wilson, the combined businesses at current trading will generate over £90m (€112m) in net sales. Together, it added, they had 290 employees based in 14 locations across the UK. 

2007

October - Geodis expanded its freight forwarding capabilities through the purchase of its German partner Rohde & Liesenfeld (finalised in January 2008).  Rohde & Liesenfeld had both a sea freight and air freight business with sales of €270m. Its largest business was in Germany, but it had significant exposure to South America, South Africa and Australia.

Geodis bought a stake in Rohde & Liesenfeld worth €13m in 2002 and paid a further €77m to purchase the rest of the company.

With the purchase of Wilson from TNT, Geodis indicated its intention not only to increase its exposure to freight forwarding but also to expand business outside of France through acquisition. Clearly the acquisition of Rohde & Liesenfeld is part of that strategy. It would also contribute to Geodis' CEO, Pierre Blayau's target of increasing revenue to over €5.5bn by 2008.

This new purchase pushed the 'Freight Management' proportion of Geodis business to over 40%. However its freight management business was still smaller than that of Ceva/EGL or Expeditors, let alone the sector leaders such as DHL or Kuehne + Nagel. However, it re-emphasised that Geodis' ambitions lay in competing with the big diversified Logistics Service Providers.

The German freight forwarder does have a slightly different profile to Geodis. It was heavily engaged in project cargo business for the oil, gas and mining sectors, which were areas that had provided lucrative opportunities to other freight forwarders, notably Panalpina.