DHL Express launches Rp-17-billion service center and gateway
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International logistics company DHL Express, part of Deutsche Post’s DHL Group, launched a service center and a gateway worth Rp 17 billion (US$1.26 million) to support its business operations in and out of Batam, Riau Islands, on Monday.
DHL Express decided to expand its business in Batam given its potential as the third-largest city in Sumatra, well known as an industrial area, an emerging transport hub, and part of the Indonesia-Malaysia-Singapore golden triangle.
“This new investment could improve our network in Indonesia that consists of gateways in Balikpapan, Batam, Denpasar, Jakarta, Medan and Surabaya,” Sean Wall, executive vice president of network operations and aviation of DHL Express Asia-Pacific said.
The new facility has the capacity to handle 2.4 million kilograms of cargo and process up to 150,000 shipments per year. About 26 people work in the 972-square-meter facility, with three certified employees for handling dangerous goods.
The company claimed that the facility was launched at the right time because the government is considering whether to make Batam a special economic zone for companies that are involved in aircraft maintenance, repair and overhaul.
“With the potential of Batam being opened as a special economic zone for the aviation industry, DHL’s investment will be able to support the growth of the aviation industry in Indonesia,” Ahmad Mohamad, senior technical advisor of DHL Express Indonesia, said.
Questions & Answers
Q.What is the primary purpose of DHL Express's new investment in Batam?
What is the primary purpose of DHL Express's new investment in Batam?
The new service center and gateway are intended to support DHL Express's business operations for cargo moving both into and out of Batam. It aims to enhance their existing network across Indonesia.
Q.What factors led DHL Express to choose Batam for this expansion?
What factors led DHL Express to choose Batam for this expansion?
Batam was selected due to its status as Sumatra's third-largest city, its reputation as an industrial area, and its emerging role as a transport hub. It is also part of the Indonesia-Malaysia-Singapore golden triangle.
Q.What capacity does the new Batam facility offer for handling goods?
What capacity does the new Batam facility offer for handling goods?
The facility can process up to 150,000 shipments annually and has the capacity to handle 2.4 million kilograms of cargo. It spans 972 square meters and employs 26 staff members.
Q.How might the new facility benefit from Batam potentially becoming a special economic zone?
How might the new facility benefit from Batam potentially becoming a special economic zone?
If Batam becomes a special economic zone for aircraft maintenance, repair, and overhaul companies, DHL's investment will be well-placed to support the growth of the aviation industry in Indonesia.
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