DHL Thailand to undergo major capacity expansion
DHL, the world’s leading air delivery and logistics provider, plans to boost its Thai operations with major capacity expansion of its depots nationwide and the construction of a new warehouse and distribution centres.
Herbert Vongpusanachai, managing director of DHL Express, said the company’s capacity would be more than doubled to serve business expansion over the next five to 10 years. Presently, the available capacity at its depots in Bangkok, Phuket and Nakhon Ratchasima are almost fully utilised.The company expects to handle more than 130,000 tonnes of goods sent this year in express, air and ocean freight.
Through more than 1.6 million shipments in those areas, business has grown in excess of 20% this year. The same level of growth is projected for next year with an anticipated 14-16% increase of the country’s two-way international trade on the back of economic expansion of 6-8 Mr Herbert said.
Mr Herbert declined to give the exact amount but said the outlay was part of DHL’s 45-billion-baht, five-year investment plan for the Asia-Pacific region starting in 2004.
The Thai expansion plans for next year follows the recent opening of Thailand’s largest air express facility at Don Muang International Airport and seven new service facilities including the first EDI (electronic data interchange) centre in Lamphun, two new warehouses, and a service centre on Rama III Road.
DHL is the biggest air express provider in Thailand, holding more than 50% of the market in terms of shipments. Other major players are TNT Express, FedEx, and UPS.
The company, which operates more than 520 flights per week for both inbound and outbound air express and air freight services, uses Thailand as one of its six Asia-Pacific hubs.
With Deutsche Post World Net acquiring the parent company in April, DHL’s Thailand operations were restructured to include the local operations of DHL Danzas Air and Ocean, the world’s largest air freight operator which is owned by the German company.
Wolfgang Richt, managing director of DHL Danzas Air and Ocean, said the company, which now has a replacement parts centre, would invest in warehouse and distribution hubs over the next two years.
The expansion plans were made under the assumption that the Thailand would become an automobile hub as the industry opens up under the Asean Free Trade Area (Afta).
The new facilities will be in the Laem Chabang deep-sea port in the eastern seaboard to be close to some automobile manufacturing facilities, Mr. Richt said.
Apart from the automotive industry, DHL expects significant growth in the electronics, garment and fashion sectors in Thailand. Liberalisation of world trade, partly through free-trade area (FTA) agreements, will help drive the air express as imports and exports increase, he added.
