DHL to Invest USD50m in development of business in Russia
DHL, the leading European express deliverer of mail and cargoes, is going to invest USD50 million in development of its business in Russia. According to General Director of DHL in the CIS, Frank-Eaves Underer, the Russian market is one of the most promising and rapidly growing in the world. Now its capacity is estimated at USD400 million and its annual growth exceeds 30percent. Along with this, Russia is the only country in the world where companies of the “big four” (DHL, FedEx, UPS and TNT) control less than a half of the market. For example, in the European Union countries their aggregate share approaches 80percent. According to analysts, not more than five large companies specializing in express delivery and logistics will remain in Europe in the future. To remain among them it is necessary to permanently broaden the range of offered services and to quickly conquer the markets of East European countries, first of all, Russia where there is no strong competition yet.
According to Underer, his company will invest the main part of money in Russia in creation of modern logistical infrastructure. In the next few years, DHL will build more than ten new customs terminals, logistic centers and warehouses for reception and transshipment of international and domestic cargoes. Two years ago, DHL preferred renting small premises in the airport of Sheremetyevo for its terminals and to hire subcontractors for transshipment of its cargoes. This enabled the company to confine its efforts to investments in training of personnel and purchase of equipment. Already in 2004, it was clear that it was impossible to carry out large-scale expansion on the Russian market without large investments in the infrastructure. That is why DHL had to increase investments. Since the beginning of 2005, the company invested more than USD25 million in three new terminals in Moscow, St. Petersburg and Samara. His sum equals the sum that DHL has invested in development of its business in Russia in the previous 20 years.
