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Deutsche Post DHL targets Asian expansion

Wednesday, July 11th, 2012

Deutsche Post DHL declared its intentions today to expand significantly its international business in Asia and become a “centre of gravity for global trade”.

Speaking at a press conference in Shanghai, the global logistics giant’s chief executive, Frank Appel, said that by 2017 the DHL business would see the proportion of its revenues from Asia grow from almost 20% to more than 30%.

DHL has invested more than $2.5bn USD in Asia over the past two years.

The company is about to open a new $175m DHL Express North Asia Hub facility at Shanghai Pudong International Airport, which it says will be the biggest express hub in Asia.

DHL Supply Chain is also about to open a new MegaHub facility in Hong Kong that will bring four warehouse facilities into one.

A further new operations hub is set to be inaugurated by DHL Global Forwarding in the region soon, to act as a consolidation point for shipments in various Asian markets before export to the rest of the world.

The company said it is now in a position to capitalise on an expected uptick in trade within Asia and between Asia and the emerging markets in the Middle East, Africa and Latin America.

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

China

The DHL chief spoke particularly of his company’s plans to support international shippers in China, where international express and supply chain activities contribute EUR 4.2bn to the company’s overall Asian revenues.

Appel said logistics played a key role in the development of the Chinese economy, ensuring efficient international trade.

“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,” he said.

“As a pioneer in the Chinese express and logistics market, we will be capitalising on the massive opportunities this country of superlatives is offering.”

Source: Post&Parcel/Deutsche Post DHL

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