DB Schenker has announced that it is pursuing a strategic relationship with Estes, a full service North American transportation solutions provider. Under the proposed deal, DB Schenker will transfer the management of its domestic ground transport network to Estes’ customized solutions division, which is a  provider of ‘business-to-business’ and ‘business-to-consumer’ high-value domestic distribution solutions. This move represents the final phase of DB Schenker’s realignment of its Domestic Transportation operations, initiated in July 2011.

“The relationship with Estes allows us to further capitalize on additional economies of scale and expertise to offer a broader, higher quality domestic transportation offering to our customers in terms of reach, speed, and reliability. The expanded capabilities that accompany this realignment of services will enhance our ability to provide our customers with value added, seamless, and integrated transportation solutions,” said Heiner Murmann, CEO, Schenker, Inc.

DB Schenker is one of the leading logistics providers in the Americas with approximately $3 billion in revenue, more than 200 locations and in excess of 10,000 employees. The company is globally ranked #2 in air freight, #4 in ocean freight and #5 in contract logistics. Estes is a fast growing provider of domestic transportation solutions serving the NAFTA region, Puerto Rico, Hawaii, and Alaska employing more than 13,500 people. The arrangement envisioned by DB Schenker and Estes will leverage the strengths of both parties.

“We are very excited about this strategic relationship with DB Schenker. We feel that Estes will enhance what is already a high-quality service for DB Schenker’s customers and expect that this relationship will further accelerate growth for both companies,” said Estes’ president and CEO Rob Estes.

Approximately 500 positions at DB Schenker in North America (roughly five percent of its workforce) will be impacted due to this realignment. However, affected employees will be provided with opportunities to pursue alternate employment both at Estes (as the company builds up its infrastructure to service the additional Schenker volumes) and at other business units within Schenker. DB Schenker expects the transition to be completed by the end of February 2012.

“We will make every effort to help our employees transition to other opportunities either within DB Schenker or with other partners including Estes. Even with this realignment, DB Schenker has added more positions due to the growth in other business units than it has reduced,” Murmann said.