DHL Express is planning to expand its air and ground network in Asia and the Middle East tosupport strong business growth in the regions, where volumes have not been hit by the uprisings and
protests in North Africa and the Middle East, a senior manager told CEP-Research.“I do not see volumes are turning down. We do not have a massive drop-off in volumes,” ChrisBresnahan, the company’s new head of Network Operations for the Asia Pacific, Eastern Europe,Middle East and Africa (AP/EEMEA) region, said in an interview. “There were some operationalissues. But our people did a great job in the last few weeks and we kept operating,” hestressed.
DHL Express was forced to suspend operations in Egypt and Tunisia during the revolutions inthose two countries and had to cope with staff shortages during several days of protests inBahrain, where its Middle East air hub is located.
In his new Singapore-based job, which he took up at the start of February, Bresnahan oversees aDHL Express aviation network spanning 131 countries, six regional hubs in Hong Kong, Singapore,Bangkok, Muharraq, Lagos and Dubai and 154 gateways. Formerly Managing Director of Hubs &Gateways of DHL Express Europe, based in Leipzig, he had earlier spent many years in Asia Pacific,rising to the position of Vice President, Hubs & Network Control Asia Pacific, based inSingapore, and General Manager for the Hong Kong hub.
“My role is really to support growth in the future. There are new trade lanes that are growingmassively. It’s a challenge to be involved in a region that is growing so much,” Bresnahandeclared. “We are positive about some countries like China and India where we have double-digitgrowth rates. We are gearing up for growth.”
DHL Express already benefits from a very strong network in Asia, the Middle East and Africa, thenew regional network operations chief said. “We have a fantastic network to build on. I do not seeanything that needs changing.”
In Asia, one of the key developments in the near future will be the opening of the North AsiaHub in Shanghai in May 2012. This $175 million facility will connect flights between Japan, SouthKorea and Northern/Eastern China, enabling the company to avoid time-consuming longer V-shapedroutes between these markets and the Central Asia hub in Hong Kong.
In southern China, there are plans to expand in the Pearl River area. DHL already operates agateway in Shenzhen. “We are looking to expand the gateway,” Bresnahan said. The main gateway tosouthern China, however, is Hong Kong which handles the bulk of volumes, he stressed. In general,DHL plans to increase frequencies to and from China and India, he said. In China, the companyplanned to work with existing airlift partners to achieve this.
In the Middle East, DHL Express will open an expanded facility in Oman in the second quarter ofthis year, integrating a gateway, country head office and service at a 4,000 sqm facility. Thecompany recently completed substantial expansion of its facilities in Lebanon, he pointed out.
“We are looking at our operations in Kuwait and Saudi Arabia. There will be a lot morehappening,” Bresnahan commented. In Casablanca, which is served by a daily flight to Paris Charlesde Gaulle, DHL plans to open a “dedicated air facility” at the airport.
A key element of medium-term network planning will be to take account of emerging new traderoutes, Bresnahan pointed out. “We are looking at new markets, such as Africa. These trade lanesare on our radar screen,” he commented.
