Tag: Asia

Taiwan, China urged to launch direct mail

Taiwanese and Chinese mail operators on Wednesday called on their governments to allow direct mail delivery across the Taiwan Strait soon.
“It takes five days to send an ordinary piece of mail from Taipei to Beijing because the mail has to go through Japan or Kong Kong,” said Huang Shu-chien, chairman of the Taiwan Postal Association and vice president of Taiwan’s state-run Chunghwa Post Co.

Huang, along with other senior postal officials and company executives from the two sides, made the appeal at a seminar during his visit to Beijing.

Taiwan and China, which split during a Chinese civil war in 1949, began allowing mail to be delivered between the two sides through a third place in 1979.

Huang noted that there are no technical problems with bypassing a third location to directly deliver mail between Taiwan and China, but he said it requires negotiations to solve the issue of direct transportation.

“The opening of direct mail delivery would halve the time and money,” Huang said.

Wang Yuci, deputy head of the State Postal Bureau of the People’s Republic of China, also urged both sides to grasp the historic opportunity to enhance and expand cooperation in the area of postal services and to soon make possible direct cross-strait mail delivery.

Taiwan-China relations have been improving since Taiwan’s new President Ma Ying-jeou, who favors closer ties with China, took office in May.

Taiwan opened itself to more Chinese tourists and the two sides launched direct weekend cross-strait charter flights in July.

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DHL invests USD 210m on central Asia hub

DHL has invested a total of USD 210 million to expand its Central Asia Hub capacity in Hong Kong, which is scheduled to be completed by 2013.

DHL in a statement said that the company has completed its USD 110 million Central Asia Hub expansion, which has doubled its size to 35,000 sqm and is expected to handle 40 million shipments this year.

It said with the expansion, the highly automated facility has a throughput of 75,000 pieces per hour (pph) of flyers and conveyable shipments, an increase of 114 per cent compared to the 35,000 pph throughput capacity before the expansion.

DHL said currently, over 60 per cent of express cargo processed by the facility is intra-Asia Pacific shipments and is expected to continue to grow alongside rising intra-regional trade.

With over 40 per cent market share and USD 2.2 billion invested in the region, it said the facility will provide the core backbone to further enhance its services and extend its market-leading position in the Asia Pacific.

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DHL set to offer tailor-made services to retail, pharma and IT

DHL plans to restructure its high growth Asia-Pacific operations to provide customised solutions through an integrated structure for sectors as varied as retail, pharma and IT, as growing demand underscores business needs to avail logistics services under one roof.

DHL Global Forwarding, part of the DHL group, has realigned the Asia-Pacific region into two buckets — North Asia Pacific and South Asia Pacific — for greater customer focus.
The North Asia Pacific region covers Greater China, Japan and Korea, while the South Asia Pacific covers the South East Asia region, South Asia (including India) and the South Pacific (including Australia). Through this restructuring DHL hopes to provide better customer service, accommodate future growth and focus more on distinct regional priorities.

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UPS to build new Asia hub

The US express service provider United Parcel Service is investing USD 125 million in a new intercontinental airfreight hub in Shanghai (China). The approximately 100,000 sqm facility is scheduled to go into service in November. Over and above this, the CEP service provider wants to start construction work on a USD 180 million hub in Shenzhen (China) for intra Asian flights. This platform should be finished by 2010 and replace UPS’ existing facility in the Philippines. UPS anticipates that it will generate 40 pct of its sales in international traffic in 2010. At present the figure is 25–30 pct. UPS has also announced that it is acquiring a logistics company in China, but it is still remaining tight-lipped about the rumours concerning its supposed USD 20 billion offer for TNT, Europe’s second largest CEP service provider.

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Integrators change course as clients go for ocean transport

This summer, FedEx opened two new gateways on the US West Coast for traffic entering its home market from Asia by ocean vessel. The integrator’s trade networks unit created gateway offices at the ports of Seattle and Oakland for traffic that moves in consolidations to the US and after breakdown is fed into the domestic FedEx network.

The focus on waterborne traffic is indicative not only of the weakness of the US economy and the impact of high oil prices on supply chain costs and strategies, it also shows a change in strategic thinking at FedEx.

Fred Smith said that FedEx was reviewing its strategy in order to position itself better to deal with an expected change in the way how its clientele was doing business. He outlined a new situation, where reliance on aircraft for shorter hauls is diminishing further. Increasingly, customers are cutting back on premium services.

The integrators remain bullish about their international express package business, particularly in Asia. FedEx and UPS are due to open their new Asian hubs in Guangzhou and Shanghai respectively this year.

Elsewhere in Asia, UPS bought out Korea Express’s share in their joint venture to assume full control of its express business in Korea.

According to some unconfirmed reports, FedEx is about to take a giant leap to boost its strength in the market, particularly on intra-European and Asia-Europe trade lanes. The integrator is allegedly seeking to acquire TNT. Both sides declined to comment on what they described as “speculation”.

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