DHL Express sees revenue booster in Asia Pacific

DHL Express expects its express delivery business in Malaysia to record double-digit revenue growth this year, in line with forecasts for the rest of Asia Pacific. Its senior vice-president for South-East Asia Yasmin Aladad Khan said last year DHL’s operations in Asia Pacific performed “extremely well”. “We expect (revenue growth for) 2006 to be the same if not better than last year’s. This is because Asia Pacific is the engine to drive future growth in the global air cargo market, and South-East Asia, in which Malaysia is part of, is going to benefit from it,” she told a news conference after the launch of DHL Express (Malaysia) Sdn Bhd’s new facility at Sultan Abdul Aziz Shah Airport in Subang last week. Yasmin said DHL Express’ Malaysian operations have been growing at a double-digit pace in the last few years, given the improved economy and booming air cargo market. Last year, it handled 4 million shipments, or 16 million kg. On the Asian transport market, Yasmin said it is projected to grow by 83 per cent, from RM2.62 trillion today to RM4.86 trillion by 2020. “Asia will continue to lead the world air cargo industry in average annual growth rates, with the intra-Asian air cargo markets expanding 8.5 per cent per year. “Meanwhile, the express volume is expected to grow up to twice the rate of total worldwide air cargo,” she said. This year, the express delivery market in Asia Pacific is expected to grow by 12.5 per cent, driven by China, Japan and India.

China is one of the fastest growing markets in DHL Express’ global network and is forecast to be the company’s largest market in the Asia-Pacific region for the coming years. Yasmin said DHL Express’ business in China had been experiencing an annualised growth rate of between 35 per cent and 45 per cent in the past few years. In 2004, it grew between 50 and 60 per cent. “Today, the Asia Pacific’s contribution to DHL Express global revenue is 15 per cent. In 2004, total Asia-Pacific revenue was RM21.6 billion,” she added. Yasmin said DHL Express will continue to invest in Asia and Malaysia to respond to the needs of its customers. The new Subang facility was initiated in direct response to the needs of these customers, she added. With 10 times a week direct flights from Subang to its Asia hub in Hong Kong, using aircraft operated by local air cargo carrier Transmile Group Bhd, DHL Express’ customers in the Klang Valley will now enjoy a shorter time-to-market lead time, while pick-up cut-off time will be extended by two hours. These direct flights are in addition to the existing 60 commercial flights utilised per week out of the KL International Airport.