DHL is investing US$15 million in three Life Science Competence Centers to fulfil growing demandfor higher levels of quality compliance.
Strategically located in Singapore, Mumbai, and Hyderabad, the centres will bolster DHL’slogistics capabilities for the Life Science industry in the region and add to its existing networkof 16 Competence Centers across the globe.
The company also announced the launch of the DHL Global Forwarding Aid & Relief Logisticsunit in Asia Pacific based in Singapore. Drawing on DHL’s expertise in Life Sciences, DHL GlobalForwarding Aid and Relief Logistics focuses on logistics solutions for Humanitarian organisationsdealing with sensitive and life critical shipments involved in aid and relief efforts.
“Asia and other emerging markets are a key sourcing, manufacturing and distribution base forthe global pharmaceutical industry. Increasingly, they will also be key markets for consumption.Investing in dedicated Life Science Competence Centers enhances our global network as we deliverhealth for the region and the world,” said Frank Appel, CEO, Deutsche Post DHL.
In 2009, the global pharmaceuticals sector, a key segment of the Life Science industry, isestimated to be worth $820 billion, with an expected growth rate of 14 -15% in emerging markets.
The DHL Life Science Competence Centers in Asia will comprise a core team of industryprofessionals who will develop solutions for customers to better manage their international supplychains. With the launch of three centers in Asia, DHL will operate 19 Life Science CompetenceCenters, all of which have been strategically located to ensure proximity and accessibility tocustomers.
In India, the world’s second most populous country, domestic demand for drug consumption isexpected to grow at a CAGR of more than 13% to reach US$11.2 billion by 2012. Having establisheditself as a preferred destination for outsourced drug discovery, clinical research andmanufacturing functions, India’s pharmaceutical production is projected to grow at a CAGR of over40%, valued at US$2.5 billion by 2010, DHL said.
The Life Science industry in India has seen new and stricter regulatory requirements forquality compliance. DHL’s Life Science Competence Centers fill the gap in the existing supplychain, by providing improved temperature controlled handling and storage, greater producttransparency and visibility, and complete end-to-end logistics capabilities.
Many leading healthcare companies have set up their regional headquarters and distributioncentres in Singapore, DHL pointed out. Pharmaceutical exports are expected to grow to US$5,951million by 2013. With its strong research base, Singapore is a manufacturing point for high-valuepharmaceutical and bio-tech products. It is also a key transportation hub receiving pharmaceuticalproducts inbound from major manufacturing sources, and providing storage and onward distributionservice to Asia, the US and Europe.
The DHL Life Science Competence Center will support the local government’s goal of having atleast 10 multi-national production facilities in operation by 2010. The city state’s proximity tothe major shipping lanes of Asia, and a high volume regional airline hub makes the country an idealsite as a life science hub.
The launch of the Life Science Competence Centres in Singapore augments DHL’s on-goinginnovations in the industry. In Singapore, DHL Express offers Temperature Controlled Logistics(TCL) door-to-door service which provides customers best-in-class network, quick transit time,track and trace, specialized handling and packaging solutions that maintain temperature of 2°C to-20° C.
With its core expertise in Life Sciences, DHL Global Forwarding’s Aid and Relief Logisticsunit is established especially for Humanitarian and Development organisations. These deal withsensitive and life critical shipments involved in aid and relief efforts. The Aid & ReliefLogistics unit will manage the movement of aid cargo in humanitarian efforts around the world anddevelop tailored solutions to provide critical round-the-clock support for the sector.
A significant amount of pharmaceuticals and other aid and relief supplies are procured fromIndia. In 2008, the United Nations procured US$620 million of pharmaceuticals, medical equipment,cold chain equipment and diagnostic test kits from India.
“With our experience in the Life Science sector and disaster management, the Aid & ReliefLogistics unit will help organisations in the Aid, Humanitarian and Development sector manage theircargo fast and efficiently to deliver to people most in need,” said Amadou Diallo, Chief ExecutiveOfficer, DHL Global Forwarding South Asia Pacific.
