DHL confident of growing in tandem with Asia-Pac region
DHL's Singapore logistics division will use its Singapore base to further develop its healthcare and life sciences and aerospace sectors, two areas which it sees chalking up attractive growth rates in the future.
With Asia-Pacific to contribute about half of global trade growth over the next few years and the growing consumer markets of China and India driving the region, DHL is confident of growing in tandem with the region as 'forwarding grows, as trade grows'.
And with a significant part of life sciences production sites based here and about half the world's aircraft orders projected to come from Asia, DHL's logistics division hopes to expand in these and all other sectors it operates in the region.
Optimism in growth prospects for Asia formed the backdrop for the world leader in the express and logistics industry yesterday as it officially opened the new premises for its logistics division's regional headquarters at The Gateway Tower on Beach Road in Singapore.
DHL Logistics has just emerged from an extensive integration exercise following the acquisition of British logistics group Exel by parent company Deutsche Post in a 3.7 billion (S$11.14 billion) deal in September 2005.
The regional operations of DHL Global Forwarding and DHL Exel Supply Chain were relocated to a single headquarters in Singapore, to further enhance internal efficiencies. This was a manifestation of how successful the integration has been, said John Allan, DHL Logistics' global CEO, who was here to join Minister of State (Trade & Industry) S Iswaran at the opening ceremony yesterday.
Mr Allan described the integration of some 160,000 employees at 2,250 sites worldwide into the merged entity as the 'biggest this century' in any industry.
He added that the group is on target to benefit from the 220 million euros in synergies it expects with the harmonisation, and service quality has improved across the board with the group being able to provide customers the entire value chain from one source.
The DHL group turned in 40 billion euros in revenue last year, handling 1.5 billion shipments and serving 4.2 million customers at 120,000 destinations. DHL's logistics division, the global leader in the air and ocean freight and contract logistics industry, accounted for over 22 billion euros, or about 55 per cent of DHL's total revenue.
Just last year, DHL Exel Supply Chain invested in a Life Sciences Hub here, specialising in handling and supporting clinical trials, cold-chain management, hospital logistics, temperature-controlled and dangerous goods storage.
'We recognised Singapore as a major pharmaceutical and life sciences hub for South-east Asia,' said Humberto Florez, CEO (Asia-Pacific) of DHL Exel Supply Chain. DHL is already looking at further expanding its Changi facilities to meet the increasing supply chain demands from the region.
'In Asia, the healthcare industry is growing at an accelerating pace to support an ageing population base.
'With increasing public demand for high-quality drugs and medical services, healthcare and life sciences companies are facing new challenges – particularly in the logistics and supply chain management sectors,' Mr Florez said.
DHL has invested over US$1.7 billion in the region in recent years building dedicated infrastructure, hubs and gateways, and the continuous expansion of its air network and application of new technologies.
DHL's logistics division alone employs 2,200 staff working at 20 facilities across Singapore, while its express division employs another 1,500 people.
