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One intriguing aspect of Roadferry’s acquisition by DSV is the opportunity that it offers Palletline for European distribution. Roadferry was a major shareholder in Palletline and also operated its Northern hub; that shareholding has now transferred across to DSV. The company was due to announce its European strategy this year, but this has  now been put on hold, pending discussions with DSV. Although both sides are at pains to stress that no deal has been done yet, it would be a surprise if Palletline did not use the ready-made European platform that DSV can offer.

Kevin Buchanan, managing director of Palletline, says: “We need to see what could be accomplished between the two of us.” Buchanan says that the network could have refused the transfer of its shares from Roadferry to DSV if it had felt the deal was bad for the network: “We were fully consulted ahead of the deal and we see it as a positive move and look forward to developing a long-term partnership with DSV.”

Rene Falch Olesen from DSV insists this is not the start of a takeover of Palletline, but adds: “It is a segment that we have been looking at for some time; Palletline is the right network for us and the right concept. “If it is looking to expand into Europe then one of the ways it can do that is to use our available resource and systems,  however that is up to Palletline” The situation is similar to that at Pall-Ex where it uses Kuehne + Nagel for a large proportion of its European distribution and also handles K+N’s pallet traffic in the UK.

Previously DSV was using Palletways for its small consignment distribution in the UK, however now it is effectively a shareholder in Palletline and also operating its northern hub and distribution to Northern and Southern Ireland, it will have much closer ties to a network. Additionally DSV utilises the Hazchem Network for its small hazardous consignments – in which Palletline is a small shareholder.

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DSV, the Denmark-based global transport company that this week bought UK operator Roadferry, has reported turnover of DKK34.9bn (£3.4bn) in its 2007 accounts. Pre-tax profits were at DKK1.5bn (£150m), a 5.5% increase on the year before. The Road division saw turnover hit DKK22bn (£2.2bn).

The firm says 2007 was a successful year in which it continued with the integration of the Frans Maas business that it bought in 2006, this integration is now complete everywhere except France and Germany. Even without Frans Maas the existing business saw organic growth of 3.4%, it says. 2008 revenue will be broadly in line with that in 2007, although pre-tax profit is forecast to increase slightly to DKK1.9bn (£190m).