DHL unveils new express and logistics initiative in China

DHL, the world’s leading express and logistics company, announced new expansion initiatives in China, bringing its investments in Asia’s fastest growing economy to more than $215 million to date. The investments, encompassing the launch of China Domestic and infrastructure developments, are part of a wider initiative to cement DHL’s leadership position as an integrated ‘one-stop’ supply chain solutions provider in China, a key engine of growth in the Asia Pacific region.

China Domestic is the first international express provider to introduce a domestic express service in China. This new express door-to-door delivery service, targeted at parcels and freight items, offers shorter delivery and pickup times, shipment visibility via DHL’s Track-and-Trace technology, dedicated customer service and quality levels that mirror DHL’s market-leading international express delivery service.

"The introduction of China Domestic marks a significant milestone for DHL and our partnership with Sinotrans," said Dr. Klaus Zumwinkel, chairman of Deutsche Post World Net (DPWN), the parent company of DHL. "The new domestic service is complemented by DHL network in China which is second to none and enables us to offer the same class-leading quality standards as our international express products."

As the first international air express company to enter China in 1986, DHL’s presence has been unbeatable in terms of maximum coverage, expertise and facilities. With the success of its China First Program, a service modified to have any package picked-up from China and delivered to more than 200 countries worldwide through hassle-free customs process, with a single currency payment system, it has come across that DHL is fully aware of the thriving business in this country.

As DHL constantly reinvents its services to tailor-fit China, the initiatives across the group’s DHL Express, DHL Danzas Air & Ocean, and DHL Solutions divisions are indications of DHL’s continued commitment. DHL’s multi-pronged strategy position the company to respond to evolving customer requirements in an increasingly booming business sector and sophisticated market.

DHL also plans to intensify express logistics activities, whose market is one of the fastest growth areas for DHL. DHL Solutions, which provides fitting contract and industry-specific logistics solutions, will explore an Industry Competence Centers focusing on the lifestyle, fashion, healthcare and FMCG sectors in China.

DHL Danzas Air & Ocean also invested $3 million in two logistics centers to cater to ocean freight and general warehousing requirements. It also plans to double its presence in China from 20 cities to 37 by 2007 under a $12-million infrastructure development program. This year, it will establish seven new offices in Wuxi, Jinan, Urumuqi, Fishon Zhongshan, Dongguan and Wenshou.

These initiatives are the latest in a series of strategic investments made by DHL over the last few years in China, including a $200- million five-year investment plan unveiled in October 2003. The funds will be partly used to expand and enhance four existing gateways, add 14 new branches, carry out 73 projects, buy 1,200 new vehicles and recruit more staff, creating up to 2,100 new positions for DHL in China. China Domestic and the express logistics initiatives mark the second phase of the five-year investment program.