DHL Express plans to invest more than EUR 100 million in its highly profitable Asia Pacificbusiness next year to extend its regional market leadership, according to CEO Asia Pacific, Scott
Price. The operator is also looking into developing a road network in South-East Asia.Outlining the Asia Pacific strategy at the DHL Express analysts’ conference on December 4,Price listed some of the major planned measures in the region next year. He revealed that DHLExpress would spend EUR 27 million out of a total planned EUR 233 million for its new North Asiahub, which will be located either in Shanghai or Incheon (Seoul), and would buy its Singapore hubinfrastructure.
Infrastructure investment in Asia will cover:
* North Asia Hub (Phase I) – EUR 27 million (Total: EUR 233 million)
* Singapore Hub Purchase – EUR 20 million
* Korea Incheon Gateway- EUR 17 million
* Japan Osaka Expansion – EUR 7 million
On DHL Express’ Asia air network, Price disclosed that there would be new dedicated DHLflights in South-East Asia, India and China. Aviation-related investment in Asia next year isplanned to include:
* New dedicated routes – EUR 13.3 million
(BKK-SZB-SIN-BKK, KUL-MAA-BLR-KUL, BKK-DAC-BOM, CHN-HKG-CHN, PVG-KIX-PVG)
* Blue Dart – EUR 11.8 million (lease EUR 11 million)
* Asia Pacific – US & Dedicated Service – EUR 33.1 million
Price stressed that DHL Express is investing in the ASEAN region (South-East Asia andIndoChina), and revealed that the operator is looking into developing a road network in the region.The South East Asia Road Express network had “excellent business potential” as a “low-costproduction system” but he stressed that any large investment at this stage would be “premature”. Inparticular, the road infrastructure in the region needed further improvement, he noted.
Price also told analysts that DHL Express aimed to increase its Asia Pacific revenues by15-18% in 2007 and indicated a further improvement in EIBT in the region and slight operatingmargin rise next year.
