DHL aims to create Africa’s first road freight network as part of plans to boost the continent’sregional and international trade, and has also unveiled new logistics facilities in Ukraine and
Australia.The company said it wants to ease the movement of goods within and out of the fast-growingAfrican continent and boost trade within regional economies. In particular, it aims to expand tradein core sectors such as oil and energy, industrial projects, life sciences and healthcare, aid andrelief and the consumer segment through simplified, reliable and cost-efficient supply chains thatwill drive growth in the region.
Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding, said: “DHL has beensupporting business in Africa for more than three decades now and we’re committed to keeping Africawell-connected to the rest of the world while identifying new opportunities in the intra-Africanmarket. To support the region’s vast growth potential, we are using our deep knowledge of themarkets to help spur growth and enable businesses discover new opportunities in Africa.”
The regional freight chief revealed that DHL will soon roll out a new road freight solutionin Africa connected by three main hubs in East, West and Southern Africa serving respective regionsand helping link inter-regional movement of goods. Dubbed Africa Connect, the service will beoffered from Mombasa and Dar es Salam (East), Spain and Morocco (West) and Johannesburg and CapeTown (South).
“Already, DHL serves key markets such as South Africa, Nigeria and Ghana three to five timesa week by air, offering capacity in excess of 2000 tons a month. A new road freight solution thatbalances cost and transit times is just what the market needs next to respond to fast changingdemands driven by rapid growth in key sectors,” Diallo explained.
DHL said it is banking on rapid cross-sector growth chiefly driven by increasing population,rising consumer spending and technology-driven economic transformation. From 2005 to 2008, consumerspending across the continent increased at a compound annual rate of 16 per cent, more than twicethe GDP growth rate, indicating that economic growth is also resulting in wealthier communities andgreater demand on the continent.
Africa’s 50-plus economies are growing at a remarkable pace across the region, with realgross domestic product having increased by an average of 4.9 per cent a year between 2000 and 2008.Foreign direct investment increased to US$62 billion in 2008 from US$9 billion in 2000. DHL is alsokeenly watching the intercontinental growth between Africa and Asia which reached US$100 billion in2010.
“A significant amount of growth in our business is resulting from Small and MediumEnterprises (SMEs). This group is going to be one of DHL’s main focal points as we look at how wecan help these companies expand beyond current limits and leverage more opportunities in and out ofAfrica. We welcome the ongoing infrastructural investment by governments in the East AfricanCommunity, and especially Kenya, because this will have a significant multiplier effect on regionalcommunities,” Diallo said.
DHL claimed it has the largest group of logistics experts dedicated to Africa and its majortrading lanes, particularly Asia. With Africa fast revealing a future worth investing in, companiesneed a partner with first-mover knowledge, expertise and experience. In 2010, DHL Global Forwardingsaw significant volume growth in Africa in both its regular operations and charter operationsconnecting all regions with Africa.
Meanwhile, the group’s European road trucking business, DHL Freight, today launchedoperations in a 20,000 sqm section of a brand-new logistics centre near Kiev. The state-of-the-artfacility will serve as a main gateway for its network in Eastern Europe, especially Ukraine,Poland, Hungary and Slovakia. The centre, with 140 employees, offers 17 docking positions fortrucks and high security standards, including comprehensive video surveillance, electronic accesscontrol and intrusion systems.
“For DHL, Ukraine is a market with huge development potential. We invested in the newfacility in order to assure best-in-class transport and warehouse services for our currentcustomers and to ready ourselves for the continued growth in Ukraine and Eastern Europe overall”,said Piotr Sikorski, Managing Director DHL Freight Poland and Ukraine.
“The new center will even better serve our customers and take our freight business to thenext level in terms of coverage, transport volumes and cost efficiency. Furthermore it strengthensour supply chain network and allows us to serve international companies transporting goods to andfrom Eastern Europe,” added Stefano Arganese, Chief Executive Officer DHL Freight Central EasternEurope Middle East. DHL Freight’s road freight network connects Western Europe with Eastern Europeand the Middle East and has connections to North Africa.
Separately, DHL Supply Chain Australia plans to invest A$80 million (€58 million) in threenew distribution centres in Sydney’s western suburbs following new business wins, contract renewalsand significant transport growth. The distribution centres, which will be operational by mid-2011,will provide more than 55,000 sqm of new facilities and form part of a new DHL Sydney Campus, aDHL-dedicated logistics area which will include the three new distribution centres and a 10,000 sqmtransport hub.
“We’ve experienced significant growth in our transport business. That coupled with DHLwinning new business and renewing the Johnson & Johnson Pacific contract for a further fiveyears has prompted us to start developing the new facilities to adequately prepare for the furtheradditional growth we expect in 2011,” said Terry Ryan, Senior Vice President, DHL Supply ChainSouth Pacific.
“The DHL Sydney Campus will ultimately become the hub for our operations in Australia. Wehave the capacity to develop an additional 120,000 sqm of space. We believe it offers an attractiveoffering to prospective and existing customers to be part of such a modern development,” he added.
