As fast as you can

The big news on the express deliveries market this year was the acquisition of Messanger Service Stolica SA by the world's largest package delivery company, UPS.

"Stolica's network and capabilities will further strengthen UPS's ability to manage customers' business needs in a very dynamic and exciting European market," said the president of UPS Europe, Wolfgang Flick.

More options

"Our combined service offering will even better position UPS to support companies of any size with shipment requirements into, within and from Poland," Flick commented when the purchase of the Polish messenger service was completed back in May.

Company sources are keen to highlight how the acquisition offers Polish customers a much broader access base to UPS's global delivery system and a wide range of international services.

Group leader

But the competition isn't too worried about the acquisition. "For us the acquisition of Stolica by UPS means less competitors on the express delivery market, which can be considered a positive thing," the general director of Masterlink Express, Rafał Nawłoka, said.

He added, however, that it is hard to talk about ways of competing with the enlarged UPS as it has not announced its strategic and development plans yet.

Small companies, for which express deliveries are the main source of income and that specialize in local deliveries or deliveries for certain clients, will not be able to compete against powerful foreign companies. "There are still a few Western logistics companies, which haven't entered the Polish market yet - and I think a lot can happen on the market especially taking the liberalization process of Poczta Polska into account," Nawłoka said.

Playing catch-up

The market has experienced rapid growth since the early 1990s, however no official figures regarding its value and market shares of main players are available due to the lack of a fixed definition of an express delivery and the fact that many companies offer both express deliveries and traditional transport and spedition services. Consequently company estimates tend to differ.

Out in front

According to DHL Express estimates, in terms of value of deliveries DHL Express is the market leader with 28.5 percent of the market share, while UPS (together with Stolica) follow with 25.6 percent. GLS Poland and Masterlink Express are almost tied at 11.6 percent and 11.5 percent of market share, respectively. Masterlink has estimated the market shares for both domestic and international deliveries for 2004. 

Business benefit

Poland's entrance to the EU has benefited the express services providers significantly. "The lack of customs, better  transport times, and lower costs in comparison to air deliveries have greatly increased the competitiveness of international road transport services," Nawłoka explained.