DHL Supply Chain earmarks €350m for Southeast Asia network

DHL Supply Chain plans to invest EUR350 million in Southeast Asia over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.

With this investment, DHL Supply Chain will increase its current 1.6 million square meters of warehouse space in Southeast Asia by 25 percent, or 400,000 square meters. This is part of a series of strategic investments by DHL Supply Chain over the past year, which have already added up to EUR1.35 billion globally. These included investments in infrastructure, hiring and development, as well as automation, digitalization and sustainability in India, Latin America and Southeast Asia.

“Companies are looking at diversifying their supply chains. Southeast Asia, with its efficient work environment and effective trade agreements such as the China-ASEAN FTA, stands to benefit the most.

“These are strategic investments we take – despite the generally softer market environment – because we invest in the future growth of our business and strongly believe in the strategic expansion and diversification of our regional businesses,” said Oscar de Bok, CEO, DHL Supply Chain.

The company added that it will continue to develop its warehouse management systems (WMS) and introduce technology in selected markets, such as auto-stores, automated storage and retrieval systems (ASRS) for pallets and large goods, and automated guided vehicles (AGVs).

“We are not just increasing our capacity, but we are building logistics centers that can cater to future demand for our customers through robotics and sustainability initiatives,” noted Javier Bilbao, CEO, DHL Supply Chain Asia Pacific.

For example, he highlighted the upcoming fifth facility in Penang – PLH5, which will feature state-of-the-art automated pallet storage and retrieval system and goods-to-person robotics technology to handle small parts picking.

Looking ahead, the contract logistics unit shared a broader strategy to nurture talent and meet evolving customer demands in automation, digital analytics, electric vehicle (EV) handling, reverse logistics, and solution design. It also plans to double its EV fleet in Southeast Asia over the next five years.

DHL Supply Chain is also championing sustainability in the sector as it committed to having carbon-neutral facilities for all new buildings, like what it has done in its facilities in Singapore and Malaysia.