DHL to Invest over US$110Mln in China

10:47:55 AM | 2/27/2007

DHL will invest over US$110 million into its China business in the next few years. This continued investment will further strengthen its market leading position in anticipation of continued strong growth. This sum is in addition to the nearly US$1 billion that DHL has already invested in the Greater China region, which accounts for over half of its more than US$1.7 billion investment in Asia Pacific from 2001 to 2006.
 
This commitment to invest was highlighted by Dr Klaus Zumwinkel, Chairman of the Board of Management, Deutsche Post World Net, DHL’s parent company, during his visit to Beijing, China.
 
“Over the past twenty years, we have meticulously laid a strong foundation for our business in China and Asia Pacific by building a robust network infrastructure, both hard and software, for the express and logistics industry in this country. Our investments went beyond monetary value to include expertise, capability and knowledge transfer. We are committed to aintaining this momentum, and playing an active role in moving China and the region up the value chain of the logistics industry globally,” said Dr. Zumwinkel.
Dr. Zumwinkel also shared that DHL Express has successfully implemented its First in China strategy, which comprised a series of initiatives launched in April 2006, including building the US$24 million flagship DHL-Sinotrans Headquarter for its express operations and to increase the number of branches from the current 56 to 72 nationwide. DHL has exceeded that target, and currently has 73 branches in China, with the latest one being opened in Lhasa.
 
Just last month, DHL Global Forwarding, one of DHL’s business units providing air and ocean freight services, became the first international forwarder to obtain the CATA (China Air Transport Association) domestic airfreight license, allowing them to operate within 17 Chinese cities. That development further elevated DHL’s leading position in China as it became the first and only international express and logistics company with licenses to offer both Domestic Express and Domestic Airfreight services in China.
 
DHL has also ventured westward outside of the usual key economic areas, ahead of the competition, and established its presence in provinces such as Shaanxi, Yunnan and Sichuan. This is in line with the Chinese government’s plan of fostering greater economic development in the outer regions. DHL Express now has the most extensive geographic network, with direct operation in 73 cities across China. Its 16 new branches in 2nd and 3rd cities, as well as DHL Global Forwarding’s recently acquired 17 domestic airfreight licenses, will enable these cities to have access to key economic zones and beyond, fuelling the socio-economic growth of these provinces.
 
The investments have successfully positioned DHL as the total express and logistics service provider – one which has set the new industry benchmark in geographical coverage, network infrastructure, best-in-class service offerings, supply chain security as well as service excellence.
 
H.Ly