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DHL enlarges warehousing capacity to tap China's logistics growth
By Winny Wang |
August 8, 2011, Monday
|
Online Edition
Online Edition
GLOBAL logistics company DHL will expand its warehousing facilities by one-third to tap into China's growing supply chain market after it got rid of its money-losing domestic express business.
DHL plans to add up to 200,000 square meters of facilities in China in the next two years, in addition to 600,000 square meters of warehousing space it currently operates across the country.
In the past few years, DHL Supply Chain invested over 800 million yuan (US$124 million) in the country.
"Rapid urbanization, strong domestic demand and the boom in online shopping are continuing to expand the market potential particularly in sectors of automotive, consumer, healthcare, retail and technology, further boosting the demand for domestic transportation services," said Victor Mok, the chief executive of DHL Supply Chain North Asia.
"Total revenue of China's domestic road transportation industry rose 67 percent between 1998 and 2007, from 12 billion euros to 20 billion euros, and it is projected to reach 28 billion euros in two years' time," Mok said.
DHL Supply Chain operates more than 15 mega logistics centers in the country's major cities and more logistics centers are expected to appear in other cities, including Wuhan and Chengdu.
DHL plans to add up to 200,000 square meters of facilities in China in the next two years, in addition to 600,000 square meters of warehousing space it currently operates across the country.
In the past few years, DHL Supply Chain invested over 800 million yuan (US$124 million) in the country.
"Rapid urbanization, strong domestic demand and the boom in online shopping are continuing to expand the market potential particularly in sectors of automotive, consumer, healthcare, retail and technology, further boosting the demand for domestic transportation services," said Victor Mok, the chief executive of DHL Supply Chain North Asia.
"Total revenue of China's domestic road transportation industry rose 67 percent between 1998 and 2007, from 12 billion euros to 20 billion euros, and it is projected to reach 28 billion euros in two years' time," Mok said.
DHL Supply Chain operates more than 15 mega logistics centers in the country's major cities and more logistics centers are expected to appear in other cities, including Wuhan and Chengdu.
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