DHL invests $750 million in new warehouse facilities

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)