DHL kicks off China priority strategy
DHL announced its China Priority strategy in Beijing, a move coming as the country, with a growth rate of 50-60% in 2004, has become the fastest-growing market among DHL's global networks.
Deutsche Post World Net (DPWN), parent company of DHL, will further elevate DHL's capacity in China through heavier investments, revealed DPWN chairman Dr. Klaus Zumwinkel.
Under the strategy, DHL-Sinotrans, its China joint venture, will inject up to USD 24 million in constructing the DHL- Sinotrans building as one of several big steps, bringing DHL's total investment in the Greater China region to more than USD 900 million.
The building will be located in Beijing Economic- Technological Development Area, studded with multinationals, and cover a total floor area of over 40,000 square meters.
It will boast first-class office environment and integrate multiple advanced functional centers, including a national training center, a 5,000-square-meter call center, a 260-square- meter information center, an express center, a task center and a national quality control center.
The building, expected to come into operation in 2007, will further promote the company's industrial edge for air and ground tasks.
The construction of DHL-Sinotrans building is a strong evidence of DHL's commitment to China market and enables the joint venture to become the most important element for Brussels- based DHL's Asia-Pacific market and even its network worldwide, said Jerry Hsu, president for DHL's Greater China and Korea.
DHL-Sinotrans is also going to enlarge the number of its branches from the current 56 to 72 by the yearend aiming to maintain its leading market share of 40% in China's express market, via consummating service network and speeding infrastructure construction.
Along with the establishment of presence in western China's Xinjiang Uygur Autonomous Region and Tibet by the end of 2006, DHL-Sinotrans will see its network cover all the capital cities in the country.
It now owns four port operation centers and seven direct- transportation port operation centers in the country, as well as 500-plus commercial scheduled flights each week, extending services to as much as 318 domestic cities.
In addition, its four effective express special airlines enable it to closely connect China's major commercial cities to overseas markets.
On April 17, DHL and its China partner, China National Foreign Trade Transportation (Group) Corporation (Sinotrans), revealed in a high profile that it would enhance their partnership. The China Priority strategy is the very proof of their determination on the issue.
On the contrary, DHL's global rivals including TNT and UPS had terminated their partnership with Sinotrans and independently operate their businesses in the country, which highlights DHL's cooperation with the Chinese express and logistics giant.
China gave nod to foreign players' independent operation of international express businesses last December, pursuant to its WTO commitment. It thus drew rampant surmises over the "marriage" between DHL and Sinotrans.
The announcement crushed up those surmises. Wu Dongming, managing director of DHL-Sinotrans, said that both DHL and Sinotrans are satisfied with their achievements over the past 20 years and what they are interested in is how to better their partnership.
Jerry Hsu also told journalists that the joint venture is successful and thus it is not necessary to change the current shareholding structure. He added that DHL's target is to continue cooperation with the Chinese shareholder, the country's leading provider of logistics services.
(USD 1 = CNY 8.01)
From www.nanfangdaily.com.cn, Page 1, Monday, April 24, 2006 [email protected]
