DHL continues to expand in China

Filed in archive Market Overview on July 30, 2009

DHL Supply Chain, the logistics unit of Deutsche Post, plans to add 10 transportation hubs in China by year end to meet growing demand for domestic shipping.

"Our customers are growing in China, which is one of the fastest-growing markets for DHL," said Victor Mok, executive vice president of DHL Supply Chain Greater China, at the opening ceremony of the firm's $25 million hub in Shanghai for transportation in eastern China.

According to Global Supply Chain Council, DHL Supply Chain, which focuses on warehousing and road transportation and distribution, also operates four major China transportation hubs in Beijing, Guangzhou, Tianjin, and Wuhan. Martin Rowe, a vice president of DHL Supply Chain Greater China, said Fuzhou and Xi-An will be among the 10 new hubs but he didn't give other details.

"China is not only a production base any more, and we are not just moving things for exporters, but also to support domestic consumption in China," he said.

DHL Supply Chain is a key driver for DHL group's growth in China. The country continues to ban foreign companies from entering its domestic express mail market.

DHL group has invested around $2.2 billion in Asia-Pacific and will continue to make significant investments in the region in the future, Mr. Mok said. He said DHL Supply Chain's growth in China will mostly be organic, though the company doesn't rule out acquisition opportunities.