Tag: DHL

DHL, the logistics unit of Germany’s Deutsche Post AG, said Thursday it plans to invest USD50 million in South Korea to expand facilities. The investment is mainly aimed at increasing DHL’s logistics facilities at Incheon International Airport, 40 kilometers west of Seoul, which is the main gateway to South Korea, the company said in a statement. DHL’s head of Asia-Pacific operations, Scott Price, said in the statement that part of the investment will be used to upgrade its service center in the nation’s southern port of Busan.

DHL plans to invest about USD50 million to boost capacity and improve service in South Korea.

The bulk of the investment will go toward expanding its current DHL Express facility at the Incheon International Airport, said Scott Price, chief executive for DHL Express in the Asia-Pacific region.

“DHL will also invest in the upgrading and expansion of its service centers, including technological innovation and more than 100 new vehicles, in Korea,” the Korea Times quoted Price as saying. Price was in Inchon to participate in the International Transport & Logistics Fair 2006 at BEXCO.

DHL’s investment plan complements the South Korean government’s vision of establishing Inchon as a preferred logistics hub to serve the region, he said.

According to the Ministry of Construction and Transportation, air-cargo volumes between Korea and the neighboring region has increased by an average annual rate of 30 percent, led by freight traffic between Korea and China.

“Our commitment in Korea is largely driven by customer needs arising from the steady flow of trade volumes into and out of South Korea,” Price said.

The existing DHL Express facility in Inchon is operating beyond capacity. DHL has to expand its existing 2,000 square meter facility to meet projected growth estimated by Incheon International Airport Corp. 7 million tons of air cargo by 2020.

DHL’s infrastructure development plans involve the consolidation of existing service centers and upgrading of other facilities to offer customers enhanced operational and service capabilities.