DHL, UPS target Latin America growth
DHL Express and UPS plan to invest more in Latin America this year to grow their business in the region and partly compensate for the impact of the slowing US economy.
Roger Crook, CEO DHL Express International Americas, told Chilean newspaper El Mercurio that the company planned to invest about USD 70 million in Latin America during 2008 and aimed to grow about 12 pct. Plans include two new offices in Chile but he did not disclose further details of the investment.
A significant proportion is likely to go to Mexico, however, in view of DHL’s plan to spend USD 112 million there over the next five years. Crook said early last year that DHL would invest USD 80 million in the region and was aiming for 15-20 pct growth in 2007.
Meanwhile, UPS, which during 2006-07 invested USD 7 million on 15 new operation centres to extend its Mexican network to 35 locations, is opening a further eight centres in the country this year, according to Mexican newspaper El Financiero.
Rubén Medina, UPS international sales manager, told the newspaper that despite the US economic slowdown, the operator’s Mexican exports grew by 5 pctin the final quarter of 2007. UPS will also aim to win more business among manufacturing companies along the Mexican border and SMEs this year, he added.
Mexico is the largest market in Latin America for UPS which has five daily flights from Mexico City to five different US airports. UPS has invested USD 39 million in Mexico since launching operations there in 1989, the newspaper said.
