DHL forecasts 100 per cent jump in regional express business in five years
Drawing on an unprecedented region-wide analysis (six markets: UAE, Kuwait, Qatar, KSA, Bahrain and Lebanon) by global consultants AT Kearney, the Deutsche Post World Net (DPWN) subsidiary forecast that the current Euros 218 million (AED 1.1 billion, US$291 million) Middle East express market will grow to Euros 400 million (AED 2 billion, US$533 million) by 2010. DHL currently has nearly 50 per cent of the express market and with its own growth rates exceeding 20 per cent a year is confident of an increasingly impressive slice of the cake.
The express sector, predominantly the fast-moving documents and parcels end of the wider logistics and freight industry, is one of DHL's core markets. In an exclusive media preview of the AT Kearney figures in Dubai today Phil Couchman, DHL's Regional Director for the Middle East, said: 'We are extremely pleased with the results of the consultants research.
DHL, the region's dominant logistics and express operator, today released figures that reveal its Middle East express business could double in the next five years on the back of runaway growth that far outstrips world averages.
'We believe that we are the dominant player and now we have the figures to prove it. Yet it represents only one strand of our business.
'We remain confident that we will continue to grow organically at the present rate, which is in excess of 20 per cent year on year, which will allow us to further invest in our network and services provision.
'We have not ruled out further acquisitions as one route for taking our expansion further and I can confirm this remains on the agenda where and when appropriate opportunities arise.'
DHL has firm plans to further invest in its air and road network to capitalise on its strengths as the market expands. Its seven-aircraft fleet of 2002 is up to 17 at present and it will shortly take delivery of three new 747s. Its land network now has more than 600 vehicles. Its road fleet, which numbered just seven trailers in 2002, now has 44.
In fact DHL has a multi-layered growth strategy that includes acquisitions but which will also see it capitalise on its Bahrain and Jebel Ali hubs and invest further in its other regional centres to build market share and further strengthen the brand.
It is actively pursuing new relationships and extending those that exist with postal authorities. Its relationship with Deutsche Post, not only through the network but also the expertise that exists within the group gives it a head start in its efforts to consolidate and build on its market leading position. Its aim remains to be the carrier of choice for national mail services such as Empost in the UAE and the postal authorities in countries such as Saudi Arabia, Kuwait and others in the region.
Mr. Couchman said, 'DHL was the first of the big global integrators to enter the region 25 years ago and brought the network and the brand name along. Now the region's time has arrived and we are ready to seize the moment. We are no longer talking about potential alone, even though remains a big consideration with our operations in Iraq and Iran yet to get fully into their stride.
'What we have is real achievement built on the strength of our brand, our impeccable reputation, the options offered by a well-organised global network through DPWN, and the ability to provide a seamless global freight and express service through our partnership with Danzas.
'The global industry trend of converging express and freight is the most interesting development in the Middle East industry and one that can only benefit a truly global operator such as DHL.'
About DHL Express
With annual revenues of nearly €22 billion in 2003, DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source.
DHL offers expertise in express, air and ocean freight, overland transport and logistics solutions, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. Over 160,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations.
DHL is 100 per cent owned by Deutsche Post World Net.
For further information, please contact:
Nic Labuschange
ASDA'A Public Relations
Exclusive Affiliate of Edelman PR Worldwide in Middle East and North Africa
Dubai, UAE
Tel: +971 4 3344550
Fax: +971 4 3344556
