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DHL remains the strongest international logistics player in China

Deutsche Post DHL recently unveiled details about the company’s plans to build on its significant presence in the Asia-Pacific region and to further expand its competitive position in China.
By Patrick Burnson, Executive Editor
August 21, 2012

Deutsche Post DHL recently unveiled details about the company’s plans to build on its significant presence in the Asia-Pacific region and to further expand its competitive position in China.

While Asia-Pacific already accounts for almost 20 percent of the company’s DHL revenues today, CEO Frank Appel revealed the Group’s growth target for the next five years: By 2017, revenues generated in Asia-Pacific should contribute around one-third to the DHL top line.

“We are well positioned for prolonged profitable growth across the region,” said Appel.

Spokesmen noted that market position is based on major investments. With more than thirty years of experience in the market, DHL is the number one logistics brand in Asia. Its Express, Global Forwarding and Supply Chain divisions are the market leader in the international express, air freight and contract logistics businesses both in the region as a whole and in many of its most dynamic economies, including China. In combination with its strong ocean freight services, the company is well placed to capitalize on the expected acceleration of transport and trade of products within Asia, as well as between Asia and other emerging markets in the Middle East, Africa and Latin America.

The supply chain consultancy, Armstrong & Associates, ranks the company top among the leading 25 global freight forwarders this year.

The company’s market position is based on major investments in its infrastructure and services. Overall, DHL has invested more than $2.5 billion in Asia over the last couple of years in the development of products and services tailored to the needs of shippers.

Going forward, all DHL divisions will further invest in their leading service capabilities to underpin their dominant role in the centre of gravity for global trade: The upcoming opening of the DHL Express North Asia Hub at Shanghai Pudong International Airport creates the biggest express hub in Asia.

Representing an investment of $175 million, it will enable DHL to provide greater flexibility and even more reliability to its customers with guaranteed time-definite delivery to major cities in northern Asia and beyond. In addition, DHL Supply Chain will shortly open its state-of-the art MegaHub in Hong Kong, which will further enhance the company’s operational efficiency and its customers’ business flexibility by bundling four warehouses into one.

Lastly, DHL Global Forwarding will soon also inaugurate a new operations hub in the region as part of its efforts to further reduce transit times and save costs by consolidating shipments from customers in various Asian markets before exporting them to the rest of the world.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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