DHL to expand in China through Sinotrans-Exel deal
Chinese logistics firm Sinotrans has sold its stake in Exel-Sinotrans Freight Forwarding Co. to DHL for USD 90 million, further expanding DHL’s reach in the Chinese logistics market.
The Exel-Sinotrans Freight Forwarding joint venture was establishing in 1996, according to a statement released by Sinotrans. The move is DHL’s latest expansion in the Chinese market. DHL in November announced it was spending USD 137 million to build a logistics hub in Shanghai.
In a recent interview with Purchasing, Tom Stanton, supply chain analyst at AFMS in Portland, Ore. said DHL is competing fiercely with U.S. rivals FedEx and UPS for market share in the Chinese market. “All three are investing heavily in China,” Stanton told Purchasing. “Each are developing better hubs and delivery services in the market. They are competing and serve a number of cities and are branding to the local Asian customers as well as the multi-nationals in Asia.”
Purchasing will do a deep-dive on the Asian logistics market in its January issue.
