DHL Global CEO optimistic about the year ahead

Despite the impact of the rising Australian dollar, global logistics company DHL Express is optimistic about its operations in Australia.

Last year, DHL posted double-digit growth and continued to snatch market share from local competitors to take a 40 per cent stake in the Australian logistics industry.

Visiting Australia for the company’s annual Asia Pacific conference, DHL Express global chief executive Uwe Rolf Doerken said the local arm was in the process of rebuilding its Sydney hub development at Sydney Airport – the cornerstone of its current domestic activity.

Announced in June of last year, the DHL Sydney Airport Development, designed as a hub for Australia and the Oceanic region, cost DHL an initial $9 million and is on track for completion in the second quarter of this year.

Mr Doerken said the local investment, which also includes the upgrade of express logistics centre in Melbourne and other centres around Australia, forms part of company’s global strategy to expand aggressively into the Asia Pacific.

“The whole of worldwide DHL sees Asia as the pre-eminent growth region in the world, and that is why we are investing in particular in Asia Pacific,” he said.

Mr Doerken added that the company’s whole portfolio of Asia Pacific investments including Japan, Hong Kong, and China had cost a total of $US1.1 billion.

And according to the DHL head the investments are performing well.

“In Australia we have seen double digit growth last year and we are currently taking market share from competitors in an industry that is not going double digit,” he said.

“If you look back 10 years … we have clearly increased our market share at the cost of other market players.”

Mr Doerken said strength in the Australian dollar, which gained 34 per cent in value last year, had not significantly affected local operations in the short-term.

“Australia and Japan are two countries that have seen evaluation upwards against the US dollar,” he said.

“(But) the average Australia exporter seems to be still optimistic.

“I wouldn’t say it was a big challenge for Australia DHL now – the way that Australia dollar is now it looks manageable,” he said.

“But if it persists, it would be foolish to say it can’t have any affect.”

Mr Doerken gave a bullish out look for the global logistics industry and said in almost every part of the world, business was looking better.

“Previously it was about security… now it’s about how can you make more money in a growing economy.”