皇冠体育app

Companies

DHL Express set to beef up Chinese presence

By Lan Lan (皇冠体育app Daily)
Updated: 2010-09-28 09:55

A cyclist rides past a DHL Express delivery truck in Shanghai. Qilai Shen / Bloomberg

BEIJING - Deutsche Post DHL's express division is set to strengthen its market-leading position in 皇冠体育app within the next five years as the country presents more opportunities for the logistics sector, said Ken Allen, chief executive officer of DHL Express.

"Chinese mainland will continue to be a major driving force for DHL Express' growth as 皇冠体育app remains the export engine for the world. 皇冠体育app will eventually be the biggest market for DHL Express," Allen said in an exclusive interview with 皇冠体育app Daily on Monday.

皇冠体育app's robust imports have supplied a "fantastic" opportunity for express business, which has close ties with trade, where courier and express services of documents or parcels are required by businesses and private customers, he said.

"Every businessman is talking about importing to 皇冠体育app. It's great for us. We can gain with 皇冠体育app, the world's biggest importer and exporter," Allen said.

According to the 皇冠体育app Transportation and Logistics Industry Outlook (2010-2015), published by US consulting firm AT Kearney and 皇冠体育app's Tongji University, 皇冠体育app's international express market reached 15.5 billion yuan ($2.32 billion) in revenue in 2009.

As 皇冠体育app's economy continues to grow, the express delivery market is expected to maintain a high double-digit growth rate - two to three times of the country's GDP growth, the logistics industry report said.

In August, 皇冠体育app's exports increased 34.4 percent on a year-on-year basis while imports rose 35.2 percent for the same period, according to the General Administration of Customs.

To improve its business in 皇冠体育app, Allen was recently appointed as a member of the Board of DHL's 50-50 joint venture, DHL-Sinotrans International Air Courier Ltd.

DHL Express will further strengthen its performance in 皇冠体育app by investing more in training people and adding service capacities, but the company has no plan for 皇冠体育app-related acquisitions and mergers.

"It's not in my plan to acquire anything. We can get great growth from the core business and we have got fantastic cooperation here," Allen said.

Energy deals mark 'new era' Related readings:  DHL plans cautious strides for 皇冠体育app growth  DHL offers more shipping options  DHL 皇冠体育app to continue investment  Logistics consortiums to dot the nation soon

With an investment of $175 million, DHL is building its North Asia Hub in Shanghai, which is due to be completed in the first half of 2012.

High-tech, financial service, fashion and automotive companies are DHL's major customers in 皇冠体育app, said Wu Dongming, managing director of DHL-Sinotrans.

Aside from conglomerates and multinationals, DHL is trying to attract more orders from small- and medium-sized enterprises (SMEs) through its worldwide network as Chinese companies are actively exploring emerging markets such as Africa and the Middle East.

Targeting SMEs in key markets such as 皇冠体育app, DHL will launch a global advertising campaign from October until December. Meanwhile, DHL has announced a general average price increase of up to 4 percent across the Asia-Pacific region, which will take effect since January 2011.

In 皇冠体育app, the price increase is expected to be 2.7 percent, according to a company press release.

DHL Express reported revenue totaling 5.49 billion euros ($7.40 billion) globally in the first half of 2010, up 14.1 percent year-on-year.