DHL to put in more funds in Philippines

Belgium-based express and logistics firm DHL Express has committed to continue investing in the Philippines despite concerns raised by some foreign investors in the wake of the controversy surrounding the Ninoy Aquino International Airport Terminal 3 project.

German airport operator Fraport AG has filed an arbitration case with the World Bank’s International Center for Settlement of Investment Disputes against the Philippine government. Fraport is seeking compensation worth $425 million for the investment it has made in the yet-to-be-opened Naia 3.DHL Asia Pacific chief executive John Mullen said in an interview yesterday that the raging controversy would not deter the firm from making additional investments in the country.

“Investment and industrial arguments happen in every country in the world among investors, customers and suppliers all the time,” he told reporters.

He added that DHL would not make any significant investment in a certain country without first conducting extensive research on the policy climate there, particularly those that would affect the company’s operations.

“Before we make an investment, we do our very best to make sure that we look at all the issues and the risks. Usually, we get it right, but we make some mistakes too. It’s just part of the business,” he said.

Mullen said DHL only knew about the Naia 3 controversy through articles that company executives read in local newspapers. Despite these stories, the company was still keen on continuing to invest in the country.

DHL has infused around $32 million in the Philippines over the past two years to further enhance and expand its existing network in the country.