DHL to open five more branches
JAKARTA (JP): Courier company PT Birotika Semesta/DHL Worldwide Express plans to open five new branches in the country's major cities in the next two years to support its growing business here.
The company's senior advisor, Mike Fitzpatrick, said that DHL had allocated around US$6 million in new investment to finance the expansion projects.
The new branches will be opened in Pekanbaru, Makassar, Timika, one of Irian Jaya's major towns, Solo and Yogyakarata, he said, adding that the expansion plan would also include the improvement of warehousing facilities in Batam, Semarang and Denpasar.
"Many companies from those cities have allocated their export packaging to our company," he said, adding that DHL also planned to upgrade computers, packaging machines and other equipment in many branches, to support its growing Indonesian operations.
Fitzpatrick said that DHL hoped to complete the expansion program by the end of 2002.
He said that the expansion plan reflected the company's optimism about the long-term prospects of Indonesia's export performance.
According to the Central Bureau of Statistics (BPS), national export earnings rose 27.3 percent to US$62.02 billion in 2000, from $48.67 billion in 1999.
Although analysts estimate that this year's exports will decrease, due to the impact of the global economic slowdown, many courier companies are upbeat that the growth will continue.
Fitzpatrick added that his optimism was also supported by the fact that DHL had recorded a 7 percent increase in revenue during the first quarter of this year compared to the same period in 2000.
"With such good signs, we're optimistic of achieving 6 percent or 7 percent in revenue growth this year," Fitzpatrick said, but was reluctant to provide DHL's income figures.
DHL, which commenced operations in Indonesia in 1973, has a customer base of about 10,000 importing and exporting companies.
They are served by DHL's 81 branches and 311 vehicles in the country. Air freight is transported through local airlines such as Garuda Indonesia Airways, Merpati Airlines, Bouraq Airlines and Mandala Airlines.
For overseas deliveries, DHL serves its customers from Jakarta, Balikpapan and Denpasar branches by utilizing international airlines, including Singapore Airlines, Cathay Pacific and Qantas Airways.
Balikpapan's branch commenced direct delivery to other countries last month, while the Denpasar office has provided the same service since the middle of this month.
The company also opened two weeks ago a direct delivery flight from Jakarta to Johannesburg via Singapore, to carry the country's export commodities into Africa, particularly textile and footwear products.
Citing research conducted last year, Fitzpatrick also said DHL controlled between 50 percent and 52 percent of the market share. (05)