NZ Post and DHL look to improve links with Asia
Smaller New Zealand businesses could be doing a booming online trade with China through new services being developed between the two markets, says New Zealand Post’s joint-venture partner DHL.
Last year, Deutsche Post-owned DHL entered a joint-venture partnership with state-owned New Zealand Post — now called Express Couriers Limited.
Scott Price, chief executive of DHL Express Asia Pacific, said they were already looking at how to improve links between New Zealand, Asia and Australia.
For example, through “bulk break” — which ships container-loads of goods before dividing them and on-shipping within the destination country, saving costs and customs.
The import express service would allow New Zealand companies to buy over the internet from Chinese companies but to order collection though New Zealand and pay in Kiwi dollars.
“I know a lot of Japanese companies have put quite a bit of manufacturing into China and I think the same opportunity exists for New Zealand companies to either procure or manufacture in China, whether that’s high tech or any industry,” Mr Price said.
At the time of DHL’s 50:50 joint venture, NZ Post’s courier business was valued at between $160 million and $180 million, with DHL paying half of that subject to a final price adjustment after June 30 earnings are released.
For the last few years, DHL has been on a massive global-expansion plan.
It has taken on US giants FedEx and UPS by securing a stake in No 3 player Airborne Inc.
It is also planning to invest $US1.4 billion ($NZ1.97 billion) expanding into Asia, including a $US273 million investment in China through a joint venture with Sinotrans and infrastructure development, a $US163 million purchase of Indian courier company Blue Dart Express and a $US400 million in a joint venture with Cathay Pacific and Air Hong Kong to buy eight new air-freight planes.
Deutsche Post chairman Klaus Zumwinkel described China — with which New Zealand starts free-trade talks later this month — as the company’s “growth engine”, with its business there growing 50-60 per cent last year.
The link-up was a win-win situation for New Zealand Post and for DHL, he said.
