Germany’s DHL To Invest $173 Million in Logistics Infrastructure in China

Posted: November 24, 2014 in Econ 101

SOURCE: http://www.supplychaindigital.com/warehousing/3719/DHL-Supply-Chain-to-invest-173-million-in-logistics-infrastructure-in-China

DHL Supply Chain to invest 173 million in logistics infrastructure in China

Sam Jermy – Nov 23, 2014

DHL Supply Chain has announced it will commit a further £90 million in China as its strategy gains traction. This is on the back of £83 million that was committed in 2013, bringing the total committed to £173 million.

The funds will support the expansion of its network across China and in particular, six additional state-of-the-art logistics facilities scheduled for completion by 2020. The confirmed locations are Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.

Oscar de Bok, Chief Executive Officer of DHL Supply Chain Asia Pacific, said: “DHL Supply Chain is on a strong growth path in Asia Pacific. China is a key driver and our strategy is gaining traction. Regardless of location, our customers expect consistency of service delivery and operation execution.

“By working closely with our customers who provide us with their demand forecast, we have a clear roadmap of the locations we need to be in; as well as the level of the services required. In China alone, DSC will expand its warehouse facilities and transport capacities by 50 percent over the next three years.”

DHL 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 Supply Chain to support continued economic growth in the western region.

The 54,000 sqm centre operates scalable, repeatable solutions for multiple customers across a broad spectrum of industries including technology, consumer and healthcare; and delivers significant synergy benefits in terms of cost, quality and performance. The new facility also acts as a multi-user cross-dock to support the effective and efficient transportation of products across the Western region.

Zou Yin, Managing Director of DHL Supply Chain China said, “Helping companies navigate China’s vast geography and varied terrain to deliver their goods safely, efficiently and cost effectively has been the holy grail of the logistics industry.

“With the continued build out of our pan-China infrastructure, technology investments and extensive transport network, DHL Supply Chain is better positioned to contribute towards China’s goal of reducing the cost of logistics and reinforce the competitiveness of Chinese businesses. This also enables us service our multinational and Chinese customer better.”

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 accelerated across China to allow the transfer of cargo with minimal warehousing.

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