DHL Express, the express delivery unit of Deutsche Post, could finalise a contract with the Shanghai Airport Authority to build a hub for its regional operations.
Li Derun, executive vice president of the airport authority, has said that “negotiations with DHL for a Shanghai hub are ongoing”.
There is hope that the parties will be able to sign an agreement before the end of the year, Reuters reported.
Read MoreA million people in the express service industry could be out of work in China if a draft proposal revising the Postal Law is passed by the National People’s Congress. It will give China Post’s express arm EMS (Express Mail Service) the sole authority to handle documents weighing under 150 grams, effectively forcing most domestic express companies to shut down as 90 percent of their business is derived from handling such small items.
Domestic freight forwarders as well as foreign express operators expressed their discontent with the draft during a meeting last month with Dong Chaojie, deputy division director of the Legislative Affairs Office (LAO) of the State Council and Da Wa, director general of the Department of Industrial Administration of the State Post Bureau. Attending the meeting were executives of 16 domestic companies as well as representatives from the big four foreign operators – DHL, TNT, FedEx and UPS.
Read MoreFedEx’s buy-out of its local partner should take its China business to new heights. FedEx Corp, a US delivery company, joined the movement in January, when its courier arm, FedEx Express, announced it would spend USD400m to buy out the 50per cent stake held by its China joint-venture partner of the past seven years. Included in the deal was the latter’s nationwide domestic delivery network. The same month FedEx broke ground on a USD150m project to build its Asia hub at Guangzhou’s brand-new Baiyun airport, the biggest and busiest airport in south China. When completed in December 2008, FedEx’s new base will handle 30-35 flights daily in and out of Guangzhou, linking 24 cities across Asia in the company’s network to the US and Europe.
Read MoreShanghai, South China’s major air logistics hub, moved slightly ahead of Tokyo in September as the city from which forwarders are making the most air cargo bookings on Unisys-operated Cargo Portal Services (CPS). Tokyo forwarders had previously led as early adopters of CPS, so this change demonstrates that their performance can be replicated elsewhere.
The 5 top cities generating the most CPS air cargo bookings after Shanghai were Tokyo, Toronto, Hong Kong, Beijing and Los Angeles. Unisys had reported on Tokyo’s previous top position in April 2006 (see http://www.unisys.com/about__unisys/news_a_events/04288654.htm).
“These results demonstrate the value of a global multi-carrier booking portal like CPS and the willingness of forwarders, especially in Asia and North America, to make bookings electronically,” said Christopher Shawdon, vice president and partner, Logistics Solutions at Unisys.
Read MoreLooking to bolster its market share in Asia’s booming cargo transport market, logistics giant DHL today inaugurated a new USD3.6 million plant in the Waigaoqiao Bonded Logistics Zone (WBLZ) in Shanghai. The new plant, which will function as a logistics centre, forms part of DHL’s USD315 million investment strategy for China, and brings the firm’s current investments in the country to USD30 million.
DHL Global Forwarding will also invest an additional USD20 million in China over the next few years to boost the company’s network infrastructure, human resources development, and range of products and services.
The new plant brings the number of facilities DHL operates in the WBLZ, which is China’s largest bonded logistic zone, to nine.
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