Consultant Insight: DHL Supply Chain plays catch up with NTA acquisition

DHL Supply Chain, part of the Deutsche Post DHL Group, announced the acquisition of Mexico-based New Transport Applications (NTA) on Sept. 8, expanding DHL Supply Chain’s specialized logistics services further into the Mexican market. NTA specializes in pharmaceutical and health care logistics including transportation, storage, qualification and validation of facilities, packaging and cold-chain processes and freight forwarding services, according to its website. "This acquisition will further support DHL Supply Chain’s objectives of delivering superior value to our customers in the Mexican market,” Agustin Croche, president of DHL Supply Chain Mexico, said in a Sept. 8 release. “It will significantly bolster our footprint in a strategically important industry vertical for DHL globally, bringing together NTA's proven operational capabilities, know-how, and a team of health care experts." [caption id="attachment_69752" align="alignright" width="413"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] NTA serves about 80 customers and makes more than 165,000 specialized deliveries annually, distributing more than 43,000 tons of cargo per year. It also maintains commercial agreements with all major airlines in Mexico to serve stakeholders in the pharmaceutical product supply chain, including hospitals, sales representatives, pharmacies and patients. Pharmaceutical production in Mexico is forecasted to grow by 36% this year, according to the National Chamber of the Pharmaceutical Industry of Mexico (Canifarma). Furthermore, Mexico is the second-largest pharmaceutical market in Latin America and shares a border and free trade agreement with the U.S., the largest health care market globally, DHL Supply Chain noted in its release. In 2020, six generic drug makers — Dr. Reddy’s Laboratories, Cadila Pharmaceuticals, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma — signed a deal with the Mexican state of Hidalgo to set up a pharmaceutical cluster for production and logistics. The move was facilitated by the Indian Ministry of Commerce and Industry and is expected to help these companies penetrate neighboring Latin American markets. However, pharmaceutical trade between Mexico and the U.S. has not been relatively strong since 2019. U.S. air volume imports from Mexico in 2021, expressed in kilograms, declined almost 70% compared with 2019 and a 57.3% decline for the same period in terms of customs value, based on USA Trade Online data from the U.S. Census Bureau. U.S. air volume exports, also in kilograms, declined almost 29% but more than doubled in terms of customs value during the same period. Despite what appears to be lackluster trade between the U.S. and Mexico regarding pharmaceutical goods, NTA has international stations for exports for not only the U.S. but a host of other countries including Germany, Argentina and Thailand. Within Mexico, NTA has seven distribution centers and 25 delivery centers. It also holds several certifications including a Gold UPS Healthcare Carrier Certification by UPS Healthcare. Much of the pharmaceutical logistics activity in Mexico is done in and around Mexico City. The city has the largest number of pharmaceutical manufacturing facilities, accounting for 50% of all FDA and/or European Medicines Agency (EMA) approved sites in the country. The state of Morelos has the second-largest number of facilities and predominantly contains facilities with API chemical capabilities. DHL Supply Chain is playing catchup to UPS, which has been investing heavily in its pharmaceutical and health care services. UPS most recently acquired Italy-based Bomi Group, a multi-national health care logistics provider. DHL Supply Chain’s acquisition of NTA will not only provide an expanded presence in Mexico but also serve as a launch pad for further expansion in the Latin American market and growth in U.S. and Mexico cross-border capabilities. Globally, DHL Supply Chain Life Sciences has 150 facilities in 40 countries and 2 million square meters of warehousing space.

Consultant Insight: DHL Supply Chain plays catch up with NTA acquisition

Air Canada Cargo’s Berry joins CFS speaker faculty

MNG turns to A321Fs for growth

Related Posts

Challenge Group launches engine dolly at LGG

New de minimis executive action targets Chinese retailers

CVC willing to bump DB Schenker bid after losing to DSV

MNG turns to A321Fs for growth

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password