DHL to open five more branches

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)