DHL strengthens its position in Greater China

By on Aug 31, 2010

DHL has announced that it will intensify its development and positioning in the Greater China Area, and Ken Allen, Global CEO of DHL Express, will join the Board of its DHL-Sinotrans Joint Venture

Greater China is one of the fastest developing markets within DHL's global network and plays a vital role in DHL's Asia Pacific and global operations

According to the China Transportation & Logistics Industry Outlook (2010 - 2015) published by US consultants AT Kearney and China's Tongji University, China's international express market revenue reached RMB 155 billion in in 2009 As China's economy continues to grow, the express delivery market is expected to maintain a high double-digit growth rate - two or three times the country's GDP growth

Being the first international express company to enter Greater China, DHL has extensive experience and knowledge of this market The company has almost 9,000 employees in China, and its services extend to more than 400 Chinese cities The company commands a significant share of the country's international express market, which is estimated to be worth US$34 billion

Between 2000 and 2009, DHL invested US$156 billion in Greater China, including:

  • Building and expanding the Central Asia Hub (CAH) in Hong Kong, the first large-scale automated Express hub in Asia Pacific (US$210m)
  • Establishing the North Asia Hub in Shanghai, to be completed in the first half of 2012 (US$175m)
  • Building the new DHL-Sinotrans HQ in Beijing, the flagship head office for its Express operations (US$24m)
  • Setting up DHL Shared Service Centre in Chengdu to provide DHL-Sinotrans with financial shared services (US$42m)
  • Express and logistics infrastructure, including the launch of DHL's Domestic Airfreight service in China in early-2007 (US$316m)
  • DHL's joint venture with Cathay Pacific and Air Hong Kong under the joint venture agreement (US$400m)