DHL today announced that it has signed a long-term strategic network alliance with Transmile,the Malaysian air cargo carrier which it already uses for regional uplift. The initial five-year
agreement will allow DHL the flexibility to add new air services or upgrade existing serviceofferings to its customers.The alliance follows the recent confirmation by Pos Malaysia that it is considering selling its17.3% stake in the airline. But DHL officials were cited in news reports as denying that theexpress giant planned to acquire this stake.
Through the partnership, both parties will work closely on the strategic development of bothintra-Asia and inter-continental air services, to meet the booming trade within the region andbeyond, DHL said in a statement. The new strategic network alliance with Transmile will boost DHL’scurrent service offerings to its customers, and significantly strengthens DHL’s market-leadingposition in the region.
Currently, through guaranteed blocked space with Transmile, DHL’s customers already enjoy airconnections beyond Hong Kong to the United States, as well as to Asia Pacific countries such asIndia, Indonesia and Vietnam. DHL offers a direct, ten times weekly service out of Subang to andfrom DHL’s Central Asia Hub (CAH) in Hong Kong – DHL’s major hub in the Asia Pacific and a gatewayto China – operated by Transmile. The CAH, the largest facility of its kind in Asia, links DHL’scustomers in the region with DHL’s global network. Transmile, currently with a fleet of fourMD-11Fs, 10 B727Fs and four B737Fs, flies from Kuala Lumpur to regional destinations, includingJapan, China and India, and has fifth-freedom cargo rights in Hong Kong for its flights to the USAand India.
“The strategic alliance is an important step for both DHL and Transmile, as it offers usopportunities to tap on the growth of intra-Asia and inter-continental trade volumes to elevate thestrategic importance of Malaysia and other Asian countries in world trade,” said Scott Price, CEO,DHL Express – Asia Pacific.
“Our strategic alliance with DHL is a win-win scenario for both of us as we strongly believethat the alliance will be mutually beneficial to both DHL and us, with the main benefactors beingour customers as it will significantly enhance our value propositions to them,” said Tun Ling LiongSik, Chairman, Transmile Group Berhad.
The enhanced partnership comes shortly after the recent upgrading of DHL’s 2,200sqm gatewayfacility at Sultan Abdul Aziz Shah Airport in Subang, Malaysia. With regular, scheduled Transmileservices operating at the Subang facility, DHL’s customers in the Klang Valley gain a half-daydelivery advantage for shipments to Asia Pacific, Europe and the west coast of the United States,as well as extended pick up cut-off times of up to two hours. DHL has invested US$1.3 million inits new gateway at Subang.
