DHL opens vital logistics center<\/p>\n
Fitri Wulandari, Hong Kong<\/p>\n
Leading express and logistics company DHL opened on Wednesday
\nits largest center for air express cargo in the Asia-Pacific to
\ngain more from the fast-growing intratrade in the region.<\/p>\n
John Mullen, DHL Express chief executive officer for Asia-
\nPacific, said the firm had recorded impressive growth in the
\nregion over the past several years and the US$100 million new
\nCentral Asia Hub facility was expected to further boost the
\nfirm's business expansion in the region.<\/p>\n
\"DHL has been experiencing strong double digit growth in the
\nAsia-Pacific region over the past five years. Intra Asia-Pacific
\ncargo volumes accounted for half of the total DHL Express revenue
\nin 2003.<\/p>\n
\"Recognizing the potential of the logistics market in Asia,
\nDHL has been pursuing a growth strategy. The construction and
\noperation of the new Central Asia Hub is an extension of this
\nstrategy,\" Mullen said in a media briefing.<\/p>\n
Located in Hong Kong International airport, the facility
\noccupies 18,200 square feet (21,770 square meters) of land and is
\ncapable of handling 440 tons of air cargo express daily and
\n20,000 shipments per hour in 2004. The new hub is in addition to
\nDHL's existing five hubs in Bangkok, Seoul, Singapore, Sydney and
\nTokyo.<\/p>\n
Mullen did not give details about how much the hub would boost
\nthe company's growth or revenue, but DHL registered a total
\nrevenue of 22 billion euros in 2003, almost 50 percent of which
\ncame from the Asia-Pacific region.<\/p>\n
According to the Boeing World Air Cargo Forecast, trade within
\nAsian states will grow at an average of 8.4 percent a year, which
\nis faster than the growth between Asia and North America (7.5
\npercent) and between Asia and Europe (7 percent). Express volume
\nwithin the Asia-Pacific region is expected to grow up to 50
\npercent this year.<\/p>\n
The choice of Hong Kong to serve as the company's largest hub
\nis mainly based on its strategic location as shipments can be
\nmade, on average, within four hours to major cities in the Asia-
\nPacific.<\/p>\n
\"When it comes to connectivity, Hong Kong is second to none.
\nAlready, over 60 percent of express cargo processed by the
\nCentral Asia Hub are intra Asia-Pacific shipments.<\/p>\n
\"It clearly reflects the important role that Hong Kong plays
\nas a conduit for international and intra Asia-Pacific trade,\"
\nMullen said.<\/p>\n
The hub is also expected to increase shipments to the
\ncompany's key market, China, where DHL continues to register an
\nannualized growth rate of between 35 percent and 45 percent over
\nthe past few years.<\/p>\n
In the first half of this year, DHL, which is fully owned by
\nDeutsche Post World Net, increased its business in China by
\nbetween 50 percent to 60 percent. More than 70 percent of DHL's
\nshipments to and from China are made through Hong Kong.<\/p>\n
The hub will also support expansion of the company's dedicated
\nair network which currently serves 25 destinations in 16
\ncountries.<\/p>\n
In the first half of this year, DHL added Ho Chi Minh City and
\nJakarta to its Asia network. It plans to add up to 4 cities into
\nthe network in the second half of 2004.<\/p>",
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"sponsor": "Okusi Associates",
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