- DHL strongest international logistics player in China
- Additional hubs further improve unique service capabilities
- Asia to contribute one-third to global DHL revenues by 2017
- CEO Frank Appel: “DHL is a pioneer in the country of superlatives”
Deutsche Post DHL, the world’s leading postal and logistics group, unveiled details about the company’s plans to build on its unparalleled presence in the Asia-Pacific region and to further expand its market-leading 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. “Over the past three decades we have established a second to none platform in the Asian markets, which sets the foundation for the continued success of our DHL divisions”, Appel stated today at a press conference in Shanghai. “We are well positioned for prolonged profitable growth across the region.”
Outstanding 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 clear 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 company’s outstanding market position is based on major investments in its infrastructure and services. Overall, DHL has invested more than US$2.5 billion in Asia over the last couple of years in the development of products and services tailored to the needs of its customers. Going forward, all DHL divisions will further invest in their leading service capabilities to underpin their dominant role in the centre of gravity for global trade: The upcoming opening of the DHL Express North Asia Hub at Shanghai Pudong International Airport creates the biggest express hub in Asia.
Logistics plays a key role
Representing an investment of US$ 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.
As China has been and will remain the main engine for both regional and global economic growth for years to come, the company has put particular emphasis on the development and expansion of its business in this important country. As a result, at over EUR 4.2 billion, revenues in China already represent more than half of DHL’s total Asian revenues. And the company is set to grow further from its market leading position: “Logistics plays a key role in the dynamic development of the Chinese economy. It is an essential component in ensuring both efficient international trade flows to and from China and the effective functioning of such a complex economy”, Frank Appel said.
“We are committed to retaining our market-leading position here by helping international players to be successful in China as well as supporting Chinese fast-growing enterprises on their international growth path. As a pioneer in the Chinese express and logistics market, we will be capitalizing on the massive opportunities this country of superlatives is offering.”