Archive for the 'DHL' Category

DHL has appointed Edward Hui as country manager Hong Kong, Macau and South China for DHL Global Forwarding.

He will be responsible for developing and executing the company’s corporate strategies and operations in Hong Kong, Macau and South China.

He will also play a key role in exploring market opportunities and enhancing customer satisfaction for the complete range of DHL freight logistics services.

Victor Mok, senior vice-president, Greater China, DHL Global Forwarding said, ‘Edward has a proven track record, both in DHL and in the logistics industry, as well as excellent knowledge of Hong Kong and mainland China markets. I am confident that under Edward’s leadership, DHL will continue to attain and maintain the number one position in the region.’

Hui joined DHL Global Forwarding in 2004 as head of airfreight operations for Exel, and subsequently led the successful integration of the equally-sized freight operations of heritage Exel and DHL Danzas Air and Ocean.
Prior to joining DHL, he was with Cathay Pacific Airways for over 13 years where he began his career as a management trainee.
Source: CargoNews Asia

The SAL Logistics Enterprises Alliance – Shanghai Airlines (SAL), China United Airlines, SAL Cargo International, SAL International Cargo Services, Shanghai Crane Transportation and Dahang International Transportation — is being called China’s first air logistics alliance.

It is up against the established heavies – DHL, FedEx, TNT and UPS – and they are all fighting for for a slice of the Shanghai market.

Last November DHL established a North Asia hub project at Pudong while UPS set up its Asia transfer center at the airport.

Thus the competition is great.

SAL chairman, Zhou Chi. said the new alliance is trying to position itself alongside Shanghai’s developing logistics sector.

SAL owns about 70 freight and passenger aircraft, which operate on about 30 international and regional routes and around 170 domestic destinations.

The group’s network covers more than 60 medium-sized and large cities in China and overseas.

By 2010, SAL plans to own 100 aircraft.
Source: AirCargo Asia Pacific

A contradiction in terms but China’s fast developing express service industry may slow down in 2008. The fault will lie wih the US economy which is suffering from the sub-prime, dodgy loans which have been such a feature of its financial field.

Logistics Association China puts forward a scenario where foreign majors represented by DHL and Federal Express will tap the chance of Beijing 2008 Olympic Games to reinforce their leading positions in the Chinese market, while domestic players, especially private ones, which feature smaller business volume, weaker capital strength and poorer management, will start to have a rough time.

China’s express service industry has been growing at a pace of around 30% in recent years and become one of the fastest growing markets of the world.

True, but DHL China, which should know, states signs of a slowdown actually appeared in 2007 this despite the fact the Chinese market still maintained steady growth.

Another major foreign player, Federal Express China, is more optimistic, working on the the basis the Chinese economy to a degree can be independent from world market changes, It is certain that domestic express service market will continue stable growth momentum although the view of domestic analysts is that with the market base getting increasingly bigger, the growth of domestic express service industry will get slower as compared to years ago.
Source: CargoNews Asia

DHL’s parent company, Deutsche Post World Net (DPWN), will buy the remaining 50% of Sinotrans-Exel, which is a joint venture, in China.

Exel and DHL business units will be amalgamated under the DHL Logistics brand in China.

Peter Landsiedel, DHL Global Forwarding’s Asia-Pacific CEO,, said, ‘DHL and Sinotrans have had, and continue to have, an ongoing and mutually beneficial relationship in the logistics and express industry in China.

‘The agreement to sell its 50% stake in the Sinotrans-Exel JV is strategically relevant to each organisation, and is a move that suits both groups’ long-term objectives and approach towards developing and maintaining a market leadership position in China’s booming logistics industry.’

Last month, DHL announced a US$175 million investment for its new Shanghai-based North Asia Hub, bringing the company’s total recent investment in the region to just over US$2.2 billion.

Victor Mok, DHL Global Forwarding’s senior vice president for Greater China, emphasized that Sinotrans and DHL Logistics remain strong business partners, and future collaborative efforts will be in line with both groups’ China expansion plans.
Source: Eye for Transport

DHL has announced it will build a North Asia hub at Shanghai Pudong International Airport for US$175 million. The facility will provide more regional connections for customers in the China and North Asia regions and intercontinental links to Europe and the U.S. The signing ceremony (pictured) was held in Shanghai on Monday.

The facility will cover 55,000 square meters and is scheduled for completion in the second half of 2010.

Wu Nian Zhu, Chairman and President of Shanghai Airport Authority, said Shanghai Airport is now the first in the world with two international transferring hubs.

Across the Asia Pacific region, DHL already has hubs in Hong Kong, Singapore, Incheon (South Korea), Bangkok and Sydney.
Source: PR DHL

U.S. AMB Property, a major global owner and developer of warehouses and distribution centres, has launched an industrial real estate project in eastern China as part of its planned expansion.

AMB Beilun Port Distribution Center is located in the Ningbo Economic and Technological Development Zone. The 37,000-sq-meter distribution center project has just started in the eastern port city of Ningbo, near Shanghai and will be completed by mid-2008.

Hamid Moghadam, AMB’s chairman and chief executive, said, ‘China represents an important part of AMB’s expanding global platform. The center paves the way for future development of port distribution property supporting China’s booming seaport trade.’

He said China is on track to overtake Japan as AMB’s largest market in Asia in three years in terms of development area and in 5 to 7 years in terms of portfolio value.

Other AMB properties in China include a 31,800-sq-meter distribution center in Shanghai and a 96,700-sq-meter distribution center, which has been leased to global express delivery and logistics provider DHL.

DHL, the express carrier and logistics provider, has a new, dedicated flight connecting Qingdao and Hangzhou with its central Asia hub in Hong Kong. The carrier has already started gateway operations at the Hangzhou International Airport. These latest investments are part of the planned $110 million investment in its China business in the next few years.

The new ten-time weekly flight, operated by a Yangtze River Express Airlines 737-300 freighter aircraft with a payload capacity of 13 tons, marks Hangzhou Airport’s first international air express cargo connection.
Source: Logistics Today

Express delivery giant DHL will invest several hundreds of millions of US dollars in its seventh regional hub in the Asia-Pacific region. It has to make a decision between Shanghai and a South Korean city for the hub in two months.

Jerry Hsu president of DHL Greater China and South Korea, said, ‘We are still evaluating factors like landing rights, oil prices and local infrastructure, and will make a decision soon.’ Read that as DHL seeing who can squeeze a few more concessions such as cuts in landing fees and very possibly free ice-cream on Thursdays.

If Shanghai is chosen, the investment to build the facility may double

DHL’s total investment in China in the past five years. DHL has committed to invest $325 million on the mainland from 2003 to 2007.
China has been one of the fastest-growing markets for the logistics firm (now owned by the German Deutsche Post) growing by about 35% a year.

Jerry Hsu said DHL has a 30% market share in the Chinese express delivery segment, far ahead of its competitors such as Fedex, UPS or local rivals like China Post and private firms.

UPS, a major competitor of DHL, also announced last month that it will establish an air delivery hub in Shanghai, the fourth such facility in the Asia-Pacific region, with an initial investment of $20 million.

Fedex said in March that it would open a China regional hub in Hangzhou, with a first-stage investment of $2 million. It also bought out its Chinese partner DTW in their joint venture.

DHL was the first foreign firm to launch domestic services in China.

A small bet is that once DHL has wrung every concession possible — including the ice cream — it will decide on Shanghai.
Source: CCTV

Express delivery means you send something somewhere and it gets there very quickly. In parts of Asia that is quite a novel idea. In China the express delivery market is going through a major revolution.

There are four major foreign players who are used to fighting it out for market share elsewhere in the world plus China Post plus some private local firms and State-owned companies. All are busy working out strategies for success or even survival.

Fedex spent $400 million to acquire the remaining stake of its joint venture with the Chinese firm DTW Group. It also bought all of DTW’s assets in the domestic and international express delivery markets. DTW’s domestic express delivery business had losses of RMB60 million in the first 11 months of 2004, but Fedex still spent $400 million for DTW. Fedex wants the network.
UPS broke from its local partner — Sinotrans — and is going it alone and has the rights to international express delivery business in tier-one cities.
DHL announced its entry into the domestic express delivery market in 2004.
TNT has already begun domestic parcel delivery.
China Post, which is state-owned, is trying to fang market share — possibly through a favorable postal law although this will bring up cries of foul play from foreign and local private firms.
Sinotrans, another domestic delivery giant, seems to be considering whether it should exit the business, or up investment. Zhang Jianwei, Sinotrans’ president, used to say his company would continue to strengthen its position in the domestic market. Whether that still holds true is open for debate. The firm’s air delivery arm, Sinotrans Air Transportation Development, still holds 25% of the international express delivery market.

It will be a major tussle and only the rich and good will survive. But there is little doubt the battle is well worth fighting for the prizes are great.
Source: China Daily

Air freight between the United States and China is forecast to grow at an average of 9.6% a year over the next 20 years (while traffic to Europe is predicted to grow almost as quickly at 9.3% over the same period).

Charles Kaufman, vice president and head of air freight, Asia-Pacific, for DHL’s Danzas Air & Ocean division, said, ‘The output from the two major airports of Shanghai and Beijing into the United States and Europe is tremendous. Airlines are increasing their flights out of China rapidly.’

The General Administration of Civil Aviation of China recently granted foreign carriers the right to pick up cargo on the Chinese mainland en route to other destinations.

Previously, an aircraft picking up freight in Shanghai, for example, was required to fly directly to its end destination without making stops in between. This new ‘freedom’ — the same sort of ‘freedoms’ are applied to passenger traffic — means that there is room for futher development in the aircargo market between China and the United States.

UPS, FedEx Express, DHL Express and even the U.S. Postal Service are making big investments in hopes of capturing market share in the China region.

John Wheeler, a representative of UPS International, said, ‘We see nothing but growth coming from China and going into China, too. The biggest issue right now is that there is a lack of capacity in and out of China and everybody is feeling the pinch. The result is a series of investments:

UPS announced in August that it will add eight new Boeing 747-400 freighters to its fleet, starting in June of this year.

FedEx announced this summer it is building a new Asia Pacific hub at the Guangzhou Baiyun International Airport in southern China. The facility, which represents a US$150 million capital investment, will allow FedEx to double its capacity in China by sorting up to 24,000 packages per hour.

DHL is investing US$273 million in a five-year China expansion plan that calls for the company to develop and launch China Domestic, a door-to-door express delivery service in China; establish Express Logistics Centers in Shanghai, Guangzhou and Beijing; and establish 16 spare-parts centers across China.
DHL will spend US$12 million to double DHL Danzas Air & Ocean’s presence from 20 cities to 37 by 2007, and will invest US$3 million in two DHL Danzas Air & Ocean Logistics Centers in the Shanghai/Pudong region.

Source: DC Velocity