DHL to invest in growing regional Asian footprint
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DHL Supply Chain has announced it will invest more than EUR 70 million in growing its regional footprint in Thailand, Vietnam, Cambodia and Myanmar by 2020. The first and only logistics company to acquire an operational business license in Myanmar since last month, DHL Supply Chain already benefits from a position of market leadership in Thailand and Vietnam, and will concentrate on Cambodia next for further growth opportunities. Over the next three years, the company plans to build new facilities, expand its fleet of trucks, and invest in new technology, creating an additional 5,000 jobs in the four countries.
“Asia-Pacific is one the most important regions for DHL Supply Chain being accountable for a significant share of our revenues in 2016. Consumer, retail and tech industries drive these developments becoming evident in increased amounts of new and extended contracts. Being already the market leader for the region it is fully natural for us to foster our commitment in the region and remaining a reliable partner,” comments John Gilbert, CEO DHL Supply Chain.
Regional footprint in Thailand, Vietnam, Cambodia and Myanmar
“According to Kasikorn Bank research [1], Thai Land Transport and warehouse market value in 2017 growth is expected to be around five to seven percent.”
DHL’s investment will also serve the wider needs of a growing Thailand, and an economy which is expected to return to accelerated growth. Government investment in mega projects i.e. infrastructure, EEC, airport expansion plans and so forth are attractive elements for foreign investors in Thailand. According to Kasikorn Bank research [1], Thai Land Transport and warehouse market value in 2017 growth is expected to be around five to seven percent. Kevin Burrell, CEO, Thailand Cluster, DHL Supply Chain Thailand explains, “With the technology and innovation that we invest in warehouse and transport operations in Thailand, coupled with our ability to deliver integrated solutions for customers, we are striving to drive enhanced value, which in turn acts as a strong differentiator for us in the market.”
DHL Supply Chain Thailand also recently completed a move to new premises located in Bangkok’s business area. The company already benefits from a reputation of being the Number 1 in contract logistics in Thailand and DHL’s nationwide network comprises of a combined warehouse space of approximately 650,000 sqm across more than 70 facilities, supported by 10,000 dedicated employees. Working as a beneficial extension to its crucially important human talent, DHL has also employed intelligent systems in both warehouse and transport operations such as in automation and robotics, unmanned vehicles, vision picking, transport control tower and telematics.
Kevin adds, “DHL provides sector-specific services across the entire supply chain, encompassing warehousing management, transportation for various business types, expertise in end-to-end supply chain solutions and full management services. DHL Supply Chain provides globally standardized, cost-efficient, high-quality and innovative solutions. We are committed to supporting customers by delivering exceptional operational services and innovation across Thailand’s entire supply chain, helping the country to become the premier logistics center for Southeast Asia. We will continue to consolidate and support markets in which we lead, namely Thailand and Vietnam, and invest in markets where we aim to lead such as Myanmar and Cambodia.”
Questions & Answers
Q.What is the total investment DHL Supply Chain plans to make in these four Asian countries?
What is the total investment DHL Supply Chain plans to make in these four Asian countries?
DHL Supply Chain plans to invest more than EUR 70 million in Thailand, Vietnam, Cambodia, and Myanmar. This investment will span over the next three years, focusing on new facilities, fleet expansion, and technology.
Q.Which industries are driving the increased demand for logistics services in the Asia-Pacific region?
Which industries are driving the increased demand for logistics services in the Asia-Pacific region?
The consumer, retail, and tech industries are driving the growth in demand for logistics services in the Asia-Pacific region. This is evident through the increased amounts of new and extended contracts DHL Supply Chain is securing.
Q.What initiatives is DHL taking to enhance its operations and services in Thailand?
What initiatives is DHL taking to enhance its operations and services in Thailand?
DHL is investing in technology and innovation for warehouse and transport operations in Thailand. This includes using intelligent systems like automation, robotics, and vision picking, along with a recent move to new Bangkok premises.
Q.What are DHL's specific goals for market leadership in the four named countries?
What are DHL's specific goals for market leadership in the four named countries?
DHL aims to consolidate its market leadership in Thailand and Vietnam. It also plans to invest in becoming a market leader in Myanmar and Cambodia, using its recent operational license acquisition in Myanmar.