Magazines Archives - 2009 August

DHL builds more facilities in Asia to tap potential
Story 13 - Logistics

GLOBAL logistic group Deutsche Post DHL is continuing its expansion in Asia with the opening of its domestic transportation hub in Shanghai, China, last June. Despite a drop in the region’s cargo volume, Deutsche Post DHL’s CEO, Frank Appel, stressed the group’s commitment to Asia, “particularly China”, where a “smaller reduction or even slight growth” in the contract-logistics sector has been detected.

Appel predicted: “This is the last economic crisis where China is impacted by reduced demand from the US and E urope. Ten years from now, the domestic market will be so large that the impact on the Chinese economy will be much smaller.”

Equipped with loading and crossdocks, the new 25,000sqm Shanghai facility at the Kangqiao Industrial Park provides storage, multi-modal transfer and data management around the clock, the group stated. Plans are under way to open up to 10 such hubs in major Chinese cities by year-end.

“The launch of DHL Eastern China Domestic Transportation Hub in Shanghai reflects our continued confidence in China and commitment to be the best integrated logistic-solutions provider,” said Appel.

“We are confident that this new hub will enhance our competitive edge, ... enabling DHL to continuously meet and exceed our customers’ expectations.”

Victor Mok, executive vice-president of DHL Supply Chain Greater China, added: “Our customers are growing in [the Chinese market], which is one of the fastest-growing for DHL. China is no longer only a production base — and we are not just moving things for exporters but also supporting domestic consumption.”

With its fleet of 1,500 vehicles, the company will provide “a full suite of domestic services”, including national line-haul, inter-regional distribution and inner-city delivery services, said Paul Graham, CEO of DHL Supply Chain Asia-Pacific.

Meanwhile, the group has set up DHL Global Forwarding (DGF) Vietnam Corporation with Vietnamese partner Oriental Logistics. A sum of US$10 million will be invested to expand the new company’s services over the next five years.

“Oriental Logistics will contribute about 51% of the investment cost, while the rest [will be funded] by DHL,” said Amadou Diallo, CEO of DHL Global Forwarding South Asia-Pacific.

“DGF Vietnam will offer ... the full range of logistic and supply-chain services available anywhere in the world. Together with DHL Express and DHL Supply Chain, DGF will provide a onestop- shop service for customers in the country,” he added.

Later this year, the DHL Fashion and Apparel Center for Excellence will also be launched in Vietnam. A first for the group in South-east Asia, the centre will provide customers in the region with solutions and services developed by industry experts. “This industry contributed nearly US$2.6 billion to Vietnam in the first four months of 2009 alone”, with the annual export figure projected at US$9.5 billion, Diallo stated.

“Despite the economic slowdown, the sector is predicted to grow 5% for the year which demonstrates some degree of resilience, compared to other sectors,” he maintained.

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