Appel Discusses DPWN's Prospects in China

CEO Frank Appel has implied that DHL Express has 40 pct of the Chinese international express market and that his principal interest is in expanding the German global logistics group’s business in that country.

Speaking to journalists in the city of Chonqing whilst accompanying the German foreign minister on a trade delegation to China, Appel discussed a number of the issues which have thrust his company into the headlines on both sides of the Atlantic. He continued to dodge questions about redundancies at the DHL hub in Wilmington, Ohio, following the company’s recently-announced restructuring of its US operations but stated that land transport business in North America was profitable. He also described himself as “not in any haste” on the issue of the Deutsche Post Bank sale, despite rumours that a number of offers have already been received and that a deal might be agreed within a few weeks.

Appel was more forthcoming about his company’s prospects in China, where he implied that DHL Express had a market-leading position. When journalists suggested that DHL Express controlled roughly 40 pct of the international express delivery market in China he replied that “what is being mentioned isn’t totally wrong”. He went on to say that he “saw no essential need to expand the company’s market share” in the cross-border express business.

Appel said the rate of growth for China’s express market would decrease but it would remain in the double-digit area. “Whether we’ll have growth of 20 pct, 30 pct or 40 pct is hard to say but we’ll be in the double-digit area.” Appel added that he expected the company to open an air hub facility in Shanghai by 2010.

However, it is in logistics that DPWN sees the most business development potential where China is concerned. Appel said the Chinese logistics market was highly fragmented but offered even more growth opportunities than express. The problem for the company was finding the right sort of partners in order to pursue that growth.