Friday, August 25, 2017

German Logistics Giant Investing Heavily in South East Asia

DHL Expands Facilities and Fleets in Region for Future Growth
Shipping News Feature
ASIA – DHL Supply Chain will invest more than €70 million in growing its regional footprint in Thailand, Vietnam, Cambodia and Myanmar by 2020. DHL Supply Chain already benefits from a well-established position in Thailand and Vietnam, and will concentrate on Cambodia and Myanmar, 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. John Gilbert, CEO DHL Supply Chain, commented:

"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."

DHL says its 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 like infrastructure, the Eastern Economic Corridor (EEC), and airport expansion plans, to name a few, are attractive elements for foreign investors in Thailand, and according to Kasikorn Bank research, Thai Land Transport and warehouse market value in 2017 growth is expected to be around 5 to 7%.

DHL Supply Chain Thailand also recently completed a move to new premises located in Bangkok's business area and its nationwide network now comprises of a combined warehouse space of approximately 650,000 square metres across more than 70 facilities, employing more than 10,000 people. 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 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.

"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 centre 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."