DHL invests $750 million in new warehouse facilities

JAKARTA (JP): Courier company DHL Worldwide Express has for the past year invested at least US$750 million in constructing new warehouse facilities in Jakarta and Bandung, a senior officer of the company said on Monday.

DHL's senior Technical Advisor Mike Fitzpatrick said the new Jakarta warehouse is worth some $450 million and the one in Bandung, which will be operational in July, is about $300 million.

"The costs involved in the investment include the development of the up to 3,000-square-meter warehouse, wide office space and a high technology handling system," Mike said on the official launch of the company's new service "Europe First".

Country marketing manager Soraya Rudianti said that DHL has a good business in Indonesia and it does shipments of various export goods.

"Examples of finished goods shipped through DHL are textiles, foot leather, wooden products and handicrafts. We also do product samples of other finished goods for export," She said.

"Since the crisis, we've received increased orders from oil companies operating in Indonesia who send machinery spare parts to Europe for repair," Fitzpatrick chipped in.

DHL will stay optimistic about Indonesia's economic recovery and plans to have other new warehouses in Batam, Medan and Tangerang soon dependent on the country's export growth, Fitzpatrick said.

He added that DHL has also committed spending another $1 billion within the next five years for facilities expansion in Indonesia.

Fitzpatrick added that the company also wants to assure businesses in Indonesia that the economic conditions are recovering.

DHL is trying to increase its business share in exports to Europe from the current 25 percent to 35 percent with Europe First, according to Mike.

"The air express market for export to Europe is showing strong potential growth," he said.

Following the company's success in increasing shipment from Indonesia to the United States with "USA First" (launched in December last year), the company is now introducing its improved service to Europe, he said.

As with the USA campaign, Europe First promises customers speedy and cost effective service, including a pledge that the package would be delivered within 24 hours.

DHL has operated in Indonesia for 20 years in partnership with PT Birotika Semesta. It currently has 70 branches throughout Indonesia and employs 700 people. (udi)