LONDON: Royal Mail parcel delivery subsidiary GLS has partnered with DB Schenker Logistics for the Europe-wide distribution of freight and parcel traffic.

GLS, with one of the largest ground-based, deferred parcel delivery operations in Europe, provides services to 37 countries tBD GLShrough a combination of wholly-owned and partner companies.

Germany, France and Italy, GLS' main markets, accounted for around 70 percent of its £1.65 billion revenue in 2014 with 94 percent from deferred parcels business.

Beginning January 01, 2016 DB Schenker will handle pallet-based traffic for GLS in Germany while the parcel company will begin deliveries for the DB subsidiary.

"Freight customers are increasingly requesting parcel services", said Rico Back, (left of picture) CEO of the GLS Group. "GLS already works together with many freight companies and networks, including DB Schenker Logistics on a national level. By signing the cooperation agreement, we have extended our cooperation to include the European economic area."

DB Schenker said the deal with GLS was prompted by plans to offer parcel services for corporate customers in Europe under its own brand to complete its land transport product portfolio.

Ewald Kaiser (right of picture), board member of Schenker AG for Land Transport, explained: "Driven by e-commerce, the European parcel market offers excellent growth opportunities. In addition, the expansion of the product range meets the constantly growing customer demand for an all-in-one solution."

Rico Back added that while GLS has its own freight network in Belgium and the Netherlands, "we also have customers in other countries who would like to send freight or pallets through us. Therefore, the non-exclusive cooperation under which DB Schenker Logistics will handle part-load consignments is an ideal solution for our customers."