Tag: Asia

DHL confident of growing in tandem with Asia-Pac region

Posted by | Apr 17, 2007 | |

DHL’s logistics division will use its Singapore base to further develop its healthcare and life sciences and aerospace sectors, two areas which it sees chalking up attractive growth rates in the future.

With Asia-Pacific to contribute about half of global trade growth over the next few years and the growing consumer markets of China and India driving the region, DHL is confident of growing in tandem with the region as ‘forwarding grows, as trade grows’.

And with a significant part of life sciences production sites based here and about half the world’s aircraft orders projected to come from Asia, DHL’s logistics division hopes to expand in these and all other sectors it operates in the region.

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Indian government proposals may rip the courier bag

Posted by | Apr 17, 2007 | |

The Indian government wants to reserve the right to carry letters, book post and parcels weighing up to 150 gm for its postal department. Private courier operators may be allowed to service this sector, but they will have to charge five times the postal department’s tariff for the same articles. In a cabinet note on the proposed Indian Post Office (Amendment) Bill, 2007, the department of posts in the ministry of communications & IT has also said that in the case of urgent or exclusive mail services, courier companies will have to charge 2.5 times the Speedpost or Express Mail Services rates. The ministry expects to introduce the Bill in the Budget session of Parliament, scheduled to reconvene on April 26. Industry sources said the move would make private courier services uncompetitive, as their services would be significantly more expensive than that of the postal department. For example, if the postal department charges Rs 100 for a packet weighing less than 150 gm, private courier operators will have to charge a minimum of Rs 500 for the same package. A bulk of the mail carried in India and originating within the country weighs less than 150 gm. The draft bill, however, makes a concession from the government’s earlier plan, which sought to reserve all postal articles up to 300 gm for the postal department. Costly Parcel

Courier charges to go up 10% of courier company revenue will be earmarked for USO fund Competition Commission calls Bill anti-competitive Watchdog to be set up; TDSAT to settle disputes Courier industry size: Rs 7,000 crore Annual growth: 25% Competition Commission of India (CCI) member and acting chairman Vinod K Dhall said, “There is a major competition issue here. This sector does not require economic regulation.”

The Rs 7,000-crore courier industry, growing at 25% a year, has called the proposed move by the government retrograde. The government, however, is of the view that the move will help generate additional revenue for the central government. The bill also proposes to make the registering of courier companies mandatory. There are also provisions to allocate a part of the revenue of courier companies to a universal service obligation (USO) fund.

The draft Bill also seeks to set up a three-member Mail Regulatory & Development Authority to regulate the sector.

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Indian logistics market to touch euro 90b by 2015

Posted by | Apr 17, 2007 | |

At a time when the logistics industry in India is at a major inflexion point and international majors like United Parcel Services (UPS) and FedEx have started making their presence felt, DHL could not have waited any longer. DHL Exel Supply Chain & Global Forwarding CEO John Allan came calling last week. Attracted, no doubt, by the booming logistics market in India.

Riding on the increased investments in infrastructure, proposed phase out of Central Sales Tax (CST) and boom in the manufacturing sector, the organised Indian logistics industry is growing larger by the day. “We estimate the Indian logistics market to be around euro 33 billion. By 2015, we expect it to reach almost euro 90 billion at a compounded annual growth rate (CAGR) of over 11%, which is higher than the rate of growth of the Indian economy,” says Mr Allan.

He adds that in the next decade, there will be a substantial growth in the manufacturing segment, which will trickle down as opportunity for logistics companies. “There are two reasons why we see a major opportunity here. Firstly, India serves as a good base for manufacturing for exports like automobile components and pharmaceuticals so most of them are moving to India. Secondly, the size of the domestic market is itself getting larger.”

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Japan Post spinoff to take over mail-order sales business

Posted by | Apr 16, 2007 | |

The new firm that will manage the post office network of privatized Japan Post will take over mail-order sales operations handling local specialties, informed sources said Monday.

The new company, which will control some 24,000 post offices nationwide, will take over mail-order sales operations from Postal Service Center, an affiliate of Japan Post, the sources told Jiji Press.

Postal Service Center currently sells local specialties by mail order across Japan, a service known as “furusato kozutsumi,” with deliveries to customers made via Japan Post’s “Yu-Pack” parcel service.

The center receives some 7 pct of the prices of local specialty goods handled as fees under the service, launched in 1983.

In fiscal 2005 ended in March last year, the number of parcels handled under the service totaled 12.45 million, accounting for some 5 pct of overall Yu-Pack parcels. The service has 610,000 members.

The takeover is designed to smooth the way for the post office managing company to start broader catalog-based sales operations handling local specialty goods.

The post office company is one of the four firms which will be created when Japan Post is split up in October under its 10-year privatization process. The three other spinoffs are a savings bank, an insurance firm and a mail delivery service firm.

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DHL relocates regional operations in Singapore

Posted by | Apr 16, 2007 | |

DHL announced the relocation of the regional operations of its two logistics business units – DHL Global Forwarding and DHL Exel Supply Chain – to a single headquarters in Singapore to further enhance its internal efficiencies and strengthen its market leading position.

In Singapore, the Logistics Division regional headquarters has over 400 employees, entrusted with the responsibility to manage, monitor and expand DHL Logistics’ operations in the Asia-Pacific region spanning 25 countries. A major responsibility of the regional headquarters is to ensure that all 25 countries connect seamlessly within the network and its regional counterparts to increase transparency, flexibility and service efficiency for customers. The DHL Logistics Division in Singapore has a combined staff strength of 2,200 employees and over 20 dedicated facilities, including a Healthcare and Life Sciences Hub, which specializes in handling and supporting clinical trials, cold-chain management, hospital logistics, temperature-controlled and dangerous goods storage.

Over the past few years, DHL’s investments in Asia Pacific have totaled over USD 1.7 billion with a focus on the development of dedicated infrastructure, enhancements of existing hubs and gateways, technology, and the continuous expansion of DHL’s dedicated Air Network.

Singapore is also the Asia Pacific headquarters for DHL Express; employing over 1,500 people.

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