Tag: China

DHL sees strong growth in China despite increased competition

Deutsche Post AG’s DHL unit still expects to grow sharply in China despite increased competition from rivals such as United Parcel Service, chief executive Klaus Zumwinkel told WirtschaftsWoche. In an interview to appear in Thursday’s annual China edition, Zumwinkel said 300 Chinese cities are now part of DHL’s delivery network. ‘None of our competitors can offer such a broad range of products and services across this wide geographic area,’ Zumwinkel said in the interview. ‘DHL is the market leader in China by a wide margin. It will not be easy to catch us.’

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Japan Post, ANA to tie up international distribution

Japan Post will make its way into international distribution services by joining hands with All Nippon Airways Co, sources said Thursday.

The two will announce their alliance at 3 p.m., the sources said.

While last week’s enactment of postal system privatization laws has allowed the postal entity to launch international delivery services, it has no international distribution networks or know-how.

Japan Post has chosen to tie up with ANA, which has such a network and international business expertise, the sources said.

Japan Post, at present a public corporation, and ANA, Japan’s second-largest airline, expect to set up a joint venture for international delivery services in Asia including China, they said.

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DHL to set up logistic management school in China

DHL has announced plans to set up its own training institution in China. As well as forming part of the company’s plans for expansion on the fast-growing market, the move will allow DHL to find and keep qualified staff. DHL plans to grow by between 35 and 40 per cent in the coming years in China, but has revealed problems when it comes to finding qualified managers.

The DHL Logistic Management University is therefore to be opened in Shanghai. In the coming year, the university will offer 40 courses for 7,500 students from DHL. Employees of DHL in other areas of Asia, such as South Korea, will also attend the university. Later, the university will open its doors to non-DHL employees. Employee fluctuation levels are high in China, but DHL hopes that the university courses will encourage staff to remain at DHL, as well as providing it with qualified managers.

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DHL: China to yield 75 percent of Asia sales in 5 years

China will account for as much as three quarters of DHL Express’s Asia-Pacific revenue in five years, up from more than 45 percent now, a senior executive said on Thursday. Asked about China’s contribution to Asian revenue, Jerry Hsu, DHL’s president for Greater China and Korea, told Reuters: “Hopefully, we will (have) at least 70 to 75 percent five years down the road. We have over 45 percent currently”. DHL, the express subsidiary of Deutsche Post World Net, expects revenue there to grow by more than half this year on top of 50 to 60 percent growth last year. “If GDP grows 8 to 9 percent, international express is going 30 to 40 percent, and we always aim to equal or grow faster than the market,” said Scott Price, DHL’s Asia-Pacific chief executive. DHL posted 3.4 billion euros (USD4.1 billion) of revenue in Asia in 2004, versus more than 24 billion euros worldwide, according to the latest figures provided in materials on Thursday.

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