Amid economic growth: DHL bullish on Phl logistics industry

MANILA, Philippines - Recognizing the country’s growth prospects, DHL Philippines Express is intent on extending its reach to more destinations via its partnership with the Philippine Postal Corp.(PhlPost). 

DHL Philippines country manager Nurhayati Abdullah says the company is encouraged by the growing enthusiasm of small businesses to adopt best practices in logistics as they expand their businesses.  

“It’s really encouraging to see that customers are opening up and willing to learn about best practices from more developed countries. So we try to impart our knowledge. So far, it’s been very positive. The Philippines is ready to adapt to changes,” Abullah says.

In May, DHL Philippines signed an agreement with PhlPost for the offering of its shipping services in 12 post offices. These outlets are in  Ortigas in Pasig City, Greenhills in San Juan, Cebu, Baguio, Sta Rosa in Laguna, Angeles City Pampanga, Iloilo, Legaspi City, Davao, and central post offices in Manila, Quezon City and Makati. 

Customers can now enjoy ease of shipping in over 220 countries by registering their documents and packages at the post offices. They will also be able to track their shipments from pick up to delivery. 

The agreement covers packages weighing 0.5 kilograms and above sent to countries not covered  by PhlPost’s Express Mail Service (EMS) as well as shipments sent to countries where EMS is offered but exceed the maximum weight that can be accepted by PhlPost for processing. 

PhlPost covers 59 countries in its EMS. 

“It’s doing quite well,” says Abdullah of the joint venture. “They have the local reach and we have the international network.The pilot is for one year but we look forward to expanding next year.” 

DHL Philippines currently has a workforce of more than 600 in 155 retail outlets and a dedicated fleet of 150. Its gateway facility is located at the Ninoy Aquino International Airport (NAIA). 

By the company’s own estimates, it already controls more than half of the market. 

DHL is now training its eyes on new growth corridors in Mindanao such as Cagayan de Oro which has been showing rapid growth because of investments in infrastructure. 

Malls like SM and Robinsons are also potential areas for the expansion of DHL Express services because putting up service points in these locations will make it easier for customers to send their packages.  

“We work very closely with PhlPost to identify the potential areas (for expansion). We haven’t arrived at a number (for new service points) but we’re quite excited to expand to more. It could be double, it could be triple; we have a thousand post offices in the nation,” says Abdullah.  

Abdullah knows  the logistics industry in Southeast Asia like the back of her hand, having had a good tour of the region in her 13 years of service at DHL. 

Prior to her appointment as country manager of DHL Philippines in April, she headed DHL in Malaysia and served as field director for Thailand and Indochina at DHL Express Thailand. For Indochina, she had jurisdiction over Laos, Cambodia and Myanmar. 

Since assuming the role of country manager for DHL Philippines, she has been touching base with officials of the Bureau of Customs and Congress to push for the passage of the Customs Modernization law. 

“We have a regular meeting with the customs commissioner. I was also able to go to  the houses of Congress to explain how certain mandates of the government can help our customers and our industry,” she says.  â€œIt will make the SMEs become more progressive and more competitive with other Southeast Asian countries.”

The proposed Customs Modernization and Tariff Act would establish a legal basis for the overhaul of customs practice in the Philippines. The proposed law contains a number of provisions to facilitate ease of trade and speed up the clearance of goods while maximizing efforts to curb smuggling. 

It would also ensure that the Philippines complies with its commitments to the World Customs Organization and the Revised Kyoto Convention. 

Passing the bill into law has been identified as one of the priorities of the Aquino administration. 

“I really support the president’s clarity on good governance because it gives direction to investors and businessmen where the country is heading,” says Abdullah. 

She says that while the country’s logistics industry is not yet as mature as neighboring Asian countries like Singapore, where DHL’s regional head quarters is located, the government’s thrust on good governance is boosting investor confidence on the Philippines. 

“I think DHL in the Philippines will continue to invest. From 2011 up to now, DHL has invested  as much as 4.5 million euros. This covers our retail outlets, refleeting of our vehicles and refurbishing our offices. So in line with our growth, we want to support the SMEs, we want to support the semiconductor industry. We also partners with seipi. So I think the investment will continue,”  says Abdullah.