Deutsche Post DHL, one of the world’s leading mail and logistics services groups, plans to invest US$132 million over the next two years to expand its coverage of intra-China lines, as well as intercontinental routes from China.
The investment will boost the company’s revenue in the Asia-Pacific region from 20 percent to 30 percent of its global revenue by 2017, a company official said yesterday.
“The potential for growth in Asia will be higher than that in the US and Europe in the near future,” Deutsche Post DHL chief executive officer Frank Appel told a media briefing on his first visit to Taipei.
Despite the sluggish global economic sentiment this year, the group’s revenue in the Asia-Pacific region still showed double-digit annual growth in the first six months, evidence supporting Appel’s view.
The greater China region has been one of the most important markets for DHL, following the group’s launch of its biggest express hub in Asia — the US$175 million DHL Express North Asia hub at the Shanghai Pudong International Airport — last week, Appel said.
Therefore, the company plans to invest a further US$132 million to add eight dedicated aircraft to serve high-demand routes in China, as well as those between Shanghai and North Asia, Europe and the US over the next two years.
DHL Express chief executive officer for the Asia-Pacific region Jerry Hsu (許克威) said the investment plan would proceed in stages, with routes between Shanghai and major North Asian cities scheduled to be launched by the end of this year at the earliest.
The investment plan will further drive up the company’s service quality in Northern Asia, including in Taiwan, Hsu said.
“The launch of the hub in Shanghai will lead to earlier delivery from Taiwan,” Hsu said. “This may help the company expand presence in Taiwan.”
As for the investment plan in Taiwan, the shipping company said it planned to expand its number of warehouses in the near future to deal with higher demand in the company’s supply chain unit, with possible building locations including Taichung and Taoyuan’s Guanyin (觀音) Township.
The group’s revenue totaled 52.8 billion euros (US$64.7 million) last year, up 2.8 percent from a year earlier, a company statement showed.