Tag: Thailand

Express and logistics giant DHL expects to grow more than 10 per cent a year in Thailand following the opening of its new facility at Suvarnabhumi Airport, The Nation reports.

DHL has spent USD22 million (Bt805 million) on the logistics hub inside the airport’s Customs Free Zone, which – at more than 12,000 square metres – is five times larger than its previous facility at Don Muang Airport.

DHL has been expanding its network and capacity throughout Asia, and the Bangkok hub has been designated the gateway to Indochina, said Scott Price, DHL’s Asia-Pacific chief.

With economies growing and exports surging, Indochina’s logistics business is poised for increased growth, Price said.

He said neither the political situation nor the baht’s appreciation had had an effect on DHL’s expansion in Thailand.

The Bangkok hub will boost service efficiency and speed up cargo processing. It has the capacity to handle more than 23,000 pieces per hour and more than 6 million shipments a year and will employ more than 200 workers.

DHL, a leading international express and logistics company, has invested 825 million baht to develop its regional logistics hub at Suvarnabhumi Airport.

It was five times larger than DHL’s former facility at Don Muang International Airport, he added.

Maximum handling capacity had also increased 30% to more than 23,000 shipments per hour (15,000 documents and 8,000 parcels) or six million shipments per year, noted Mr Price.

He expected 65% of shipments at the new facility to be delivered within Asia-Pacific and 20% to be transported between Europe, the Middle East and Asia. The rest would move between the United States and Asia.

Indochinese countries have seen healthy economic growth in the last decade. For example, trade value between Thailand and other countries in Indochina had increased 40% to 190.30 billion baht in 2005 from around 135.93 billion baht in 2004, said Mr Price.

He said DHL expected to enjoy a two-digit growth rate in Thailand again this year as the political situation and the stronger baht had not affected its businesses.

DHL would continue to invest in infrastructure improvement in Thailand in order to retain its market share of 50% in the local market, said Mr Price.

The market value of the logistics industry in Asia-Pacific is expected to grow to 47.58 trillion baht in 2020 from 25.62 trillion baht at present.

Asia would continue to lead the global air-freight industry with an average annual growth rate of 10.8% and air-express volume would double in comparison to other kinds of air transport in 2020, said Mr Price.