DHL Supply Chain (DSC) is planning to spend €218 million to expand its Chinese network tosupport inbound and outbound logistics in the country.
The world largest contract logistics provider announced today that it will commit a further €113million to China on top of the €105 million that was committed in 2013, bringing the total to €218million. The funds will support the expansion of its network across China and in particular sixadditional state-of-the-art logistics facilities scheduled for completion by 2020 in Guangzhou,Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.
DSC recently opened its state-of-the art Chengdu Logistics Centre facility in western China.Located in Xindu district, the Chengdu Logistics Centre is a key strategic investment by DHL SupplyChain to support continued economic growth in the western region. The 54,000 sqm centre operatesscalable, repeatable solutions for multiple customers across a broad spectrum of industriesincluding technology, consumer and healthcare; and delivers significant synergy benefits in termsof cost, quality and performance. The new facility also acts as a multi-user cross-dock to supportthe effective and efficient transportation of products across the Western region.
In addition, new facilities have been introduced in the Tier 1 cities of Beijing, Shanghai,Guangzhou and Shenzhen, while the roll-out of DHL Supply Chain cross-docks has been acceleratedacross China to allow the transfer of cargo with minimal warehousing.
Oscar de Bok, CEO of DHL Supply Chain Asia Pacific, said: “DHL Supply Chain is on a stronggrowth path in Asia Pacific. China is a key driver and our strategy is gaining traction. Regardlessof location, our customers expect consistency of service delivery and operation execution. Byworking closely with our customers who provide us with their demand forecast, we have a clearroadmap of the locations we need to be in; as well as the level of the services required. In Chinaalone, DSC will expand its warehouse facilities and transport capacities by 50% over the next threeyears.”
Zou Yin, Managing Director of DHL Supply Chain China, added: “Helping companies navigateChina’s vast geography and varied terrain to deliver their goods safely, efficiently and costeffectively has been the holy grail of the logistics industry. With the continued build out of ourpan-China infrastructure, technology investments and extensive transport network, DHL Supply Chainis better positioned to contribute towards China’s goal of reducing the cost of logistics andreinforce the competitiveness of Chinese businesses. This also enables us service our multinationaland Chinese customer better.”
DSC’s new spending follows a total of €500 million investment in the Asia Pacific region in thelast two years to expand its network. This year alone, the supply chain provider added 12 newfacilities, equivalent to 436,000 sqm of warehousing space, in the region while five morefacilities, covering an additional 110,000 sqm, are planned to open in 2015.
De Bok added: “Our global scale combined with our experience across all industry sectors,have enabled us to develop successful supply chain solutions for customers of all sizes, includingmany of the world’s leading brands and corporations. Here in the Asia Pacific, India, Indonesia,Thailand and China will drive our growth, supported by demand in the established markets ofAustralia and Japan. We work closely with all our customers to create sustainable competitiveadvantage for their businesses and we will continue to partner our Chinese customers supportingtheir growth and expansion by growing business globally.”
