DHL earmarks over one-third of Bt5.4 bn investment in Thailand

DHL Supply Chain says it will invest ¤140 million (Bt5.4 billion) in Southeast Asia between now and 2015. From that budget, ¤50 million(Bt1.93 billion)   will be invested in Thailand, 40 million in Indonesia and 10 million in Vietnam.

The bulk of the investment will go towards new facilities, advanced information technology, transport expansion and bolstering staff strength and training. 

These investments are expected to enhance DHL’s market-leading position as a contract logistics provider in the key consumer, retail, automotive and technology industries and grow its business in emerging sectors.

“We plan to double our size in the next two to three years. We’re already off to a strong start – by the end of 2013, we will have opened seven best-in-class multi-user facilities across strategic locations in Southeast Asia,” said Oscar de Bok, chief executive officer for South and Southeast Asia. “These investments in quality, facilities, transport capabilities, IT and people are necessary to meet the needs of our customers in the region.”

The seven new facilities to be completed this year include bespoke solutions to target growth in specific industries. Already this year, DHL launched a 17,000-square-metre built-to-suit warehouse in Cimanggis, West Java, Indonesia, which boasts special features tailored for customers in the fast-moving consumer goods (FMCG) industry. 

The company will also launch a new facility in Bangkok’s Bang Na district this year to support its continuing growth in the retail, fashion and consumer sectors, and a new built-to-suit facility in Bac Ninh province, Vietnam, to cater to the retail, consumer and technology sectors. 

Developments are also under way for new facilities in Singapore and parts of Malaysia.

By 2015, DHL Supply Chain will substantially increase its transport fleet, both owned and managed. 

The company also plans to grow its staff strength by some 65 per cent to about 25,000 people and expand warehouse capacity by more than 50 per cent to operate about 1.4 million square metres across the region. DHL is also continuing to invest in advanced IT solutions covering transport, warehouse management and valued-added solutions.

Southeast Asia, with a combined gross domestic product of US$1.9 trillion (Bt57 trillion), has seen a significant expansion of the middle class. 

By 2015, it is estimated that some 145 million people in Southeast Asia will be considered middle-class, up from 95 million in 2010. The region’s consistent economic growth has seen many businesses look to the region not only as a source of manufacturing and production, but increasingly a key market for domestic consumption.

In addition to recent investments announced by DHL Supply Chain in Thailand, Indonesia and Vietnam, some of the 140-million-euro budget will also go towards other markets in Southeast Asia to grow the company’s footprint.

“As businesses grow and enlarge their distribution footprints, their supply-chain operations become more complex. This is where DHL can lend its global expertise and local experience – by fully managing our customers’ logistics, we enable them to focus on their core business,” de Bok said.