DHL Express, the Middle East market leader, is expecting good growth in the booming region in thefuture thanks to expanded domestic services, higher demand for road transport, and synergies with
DHL Global Forwarding and DHL Supply Chain, regional director Phil Couchman told CEP-Research in aninterview.DHL Express is successfully defending its high regional market share, including of about 43%in the Gulf Cooperation Council (GCC) market, despite more intensive competition, he said at thisweek’s World Mail & Express Logistics Middle East, Africa & South Asia conference in Dubai.
“We are growing very quickly,” Couchman said. The express operator was growing at about 20% ayear in the Middle East region compared to slightly lower market growth rates, he noted. But hepointed out that costs were rising fast, particularly in Dubai, due to higher salaries and localliving costs as well as more expensive fuel, meaning that price rises taking cost increases andinflation into account were necessary.
Outlining DHL Express’ growth strategy for the region, he said: “We will be focusing more onsmall businesses, on the financial services sector and local companies.” The domestic presence inthe UAE, for example, is being expanded through 26 Servicepoint outlets in shopping malls andsimilar locations for small businesses and walk-in customers. About 50% of DHL’s shipments areintra-regional rather than international traffic.
Although time-definite shipments through the regional air network account for 70% ofshipments, stronger growth is expected in overland day definite transport in the future. “We seeday definite growing fast,” Couchman said. “We are looking especially at providing the road networkfor DHL Global Forwarding and contract logistics for distribution mostly out of Dubai.” The DHLbrand would increasingly be rolled out across the Middle East, generating new businessopportunities, he noted.
“The road network has grown into the biggest scheduled day definite provider in the MiddleEast,” he pointed out. DHL’s Middle East road network covers the GCC countries, Jordan, Lebanon,Syria and extends into Egypt, Turkey (Istanbul) and Iran. A new trucking facility is currentlyunder construction at Amman.
Under the AED 500 million (EUR 103 million) Deutsche Post World Net investment announced forDubai, DHL Express has reserved 50,000 sqm for a hub at the new Dubai World Central airport. Itexpects to start operations at what is designed to be the world’s future largest airport at somestage during 2008. “This will be mostly commercial uplift but some DHL planes will operate there.Some of our hub activities will develop there.”
DHL Express currently operates a Middle East regional air network with 14 aircraft out of itsBahrain hub, which is linked to its worldwide network via daily round-the-world MD-11F services.DPWN chairman Klaus Zumwinkel travelled to Bahrain after announcing the Dubai investment in orderto reiterate the company’s commitment to its presence in that country.
