[photopress:dhl_increases_effort_1.jpg,full,alignright]Over the next few years the German air express and logistics giant DHL will invest more than $110 million in China. The investment will be used to expand infrastructure, including more transport vehicles and service center equipment, and for training its employees.
Klaus Zumwinkel, board chairman of Deutsche Post World Net, which is DHL’s parent company, announced all of this during his latest North Asian trip.
DHL is considering setting up a North Asia hub in either Shanghai Pudong International Airport or Incheon International Airport in South Korea.
Scott Price, CEO of DHL Express Asia-Pacific, said an announcement on which airport is selected will be made by the second quarter of this year. He said, ‘There is still one last filter of analysis to do. It is a very close race between the two airports.’ DHL currently has a Central Asia hub in Hong Kong and South Asia hub in Singapore.
The company’s United States rivals, FedEx and UPS, both have plans to build regional hubs in China. FedEx, previously based mainly in the Philippines, will launch a new Asia-Pacific hub in Guangzhou Baiyun International Airport in 2008.
UPS signed a memorandum of understanding with Shanghai Airport Group last year to establish the UPS International Air Hub at the Pudong airport.
China is one of DHL’s fastest-growing markets, accounting for 25% of its revenue in the Asia-Pacific and 10% of its global sales.
Source: China Daily