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DHL eCommerce and CTT Expresso have formed a groundbreaking strategic partnership aimed at maximizing growth potential in the e-commerce and parcel market in Spain and Portugal, which together form the fourth largest market in Europe. The collaboration aims to create the most comprehensive pickup and delivery network in Spain and Portugal. To this end, the companies will establish specialized joint ventures.
(Bonn) In Portugal, CTT Expresso acquires the DHL eCommerce business and will henceforth process and deliver DHL eCommerce’s parcel volumes. In Spain, each partner focuses on a specific area: DHL eCommerce will concentrate on the B2B business, while CTT Express, the Spanish unit of CTT Expresso, will focus on the B2C business. This will create a highly efficient network for parcel processing and last-mile delivery that enhances the customer experience across the Iberian Peninsula.
“Today, we have laid the foundation for our customers for a unique market access and pan-European expansion potential. Significant growth is expected in e-commerce on the Iberian Peninsula in the coming years. Our investments and collaboration create a powerful network that improves service quality and reliability in both the B2B and B2C segments, aiming to achieve 1 billion euros in revenue from the joint business. By leveraging the individual strengths of CTT and DHL eCommerce, this partnership makes us the first choice for growth-oriented e-commerce companies and retailers,” said Pablo Ciano, CEO of DHL eCommerce.
“CTT and DHL eCommerce share common values, as both belong to companies with a long tradition in the parcel and logistics sector, where quality and reliability are always the focus. By combining our strengths on the Iberian Peninsula, we create real added value for our customers and become the partner that the booming e-commerce trade needs. Additionally, CTT Expresso will accelerate its growth and optimize its market reach through collaboration with DHL eCommerce in Spain and the integration of DHL eCommerce in Portugal. This strengthens our position as the fastest-growing provider of e-commerce logistics on the Iberian Peninsula,” explains João Bento, CEO of CTT – Correios de Portugal.
Network with 20,000 Service Points
With a network of 20,000 service points (PUDOs), 22 hubs, and 257 depots in Spain and Portugal, as well as more than 1,000 parcel stations under the Locky brand, CTT Expresso is one of the leading parcel delivery companies in Portugal and the fastest-growing in Spain. DHL eCommerce is particularly strong in Spain with over 3,000 service points, seven hubs, and 73 depots. The integration of the two networks will increase convenience for customers, as they will be able to drop off and pick up parcels at parcel stations or service points of both partners in the future. There are also plans to expand the joint out-of-home network in the coming years by establishing 10,000 new parcel stations. Furthermore, the collaboration will provide optimal solutions not only for domestic but also for international e-commerce companies by leveraging DHL eCommerce’s European network and expertise in cross-border parcel shipping.
Subject to Regulatory Approvals
The new partnership will operate under the independent brand names “CTT Express, a partnership with DHL” in the B2C segment and “DHL, a partnership with CTT Express” in the B2B segment. The agreement and the described partnership are subject to regulatory approvals. The transaction will only be executed after receiving clearance in accordance with the relevant merger control requirements.
Photo: © DHL / Image Caption: João Bento (left), CEO of CTT – Correios de Portugal and Pablo Ciano, CEO of DHL eCommerce at the contract signing
