DHL Express will invest substantially in Brazil this year with a near 25% rise in employees,more vehicles and new ground facilities to expand in the strongly growing domestic express market,
according to local media reports. It is targeting 20% revenue growth in 2008.The company already expanded its operations in the country in the first half of the year withseveral new facilities and service-points. DHL has opened four new locations in Alphaville andCampinas (Sao Paulo state), the capital Brasilia, and the southern metropolis of Porto Alegre,along with a distribution centre in Rio de Janeiro and a service-point in a major Sao Pauloshopping complex, the Gazeta Mercantil reported. DHL Express Brazil now has a network of 57locations.
Juliana Vasconcelos, marketing director for DHL Express Brasil, was cited as saying that thecompany aims to strengthen its presence in the market and expand its range of services. “We arechoosing regions with major economic potential,” she said.
The Rio-based Jornal do Commércio reported that DHL Express is targeting a 20% increase inrevenues this year. “The domestic market is growing in demand as a reflection of themacro-economy,” Vasconcelos said. DHL also aimed to profit from the rapid growth in e-commerce inBrazil.
To support growth, DHL Express will make its biggest annual investment since the installation ofthe company in Brazil in 1978, although the figure was not disclosed. Measures include increasingthe vehicle fleet from 200 to 270, recruitment of 200 additional staff to take the number to 950,and the opening of depots and distribution centres. “We want greater accessibility to DHL Express.There are still opportunities in Rio de Janeiro and also in the south and southeast,” she said.
Brazilian exports, in contrast, have been impacted by the rise of the real against the USdollar. In response, DHL plans to offer a new economy service for larger shipments of up to 1,000kgs, the newspaper wrote.
Brazil is currently DHL’s third-largest market in the International Americas region behindCanada and Mexico but Brazil could overtake Mexico in the future, Vasconcelos said.
