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DHL's hub seeks to use road transport segment

LOGISTICS giant DHL opened a US$25 million transport hub in Shanghai yesterday as it taps the growing domestic road transport industry, and it plans to build 10 more hubs across the country this year.

The DHL Eastern China Domestic Transportation Hub in Kangqiao Industrial Park covers 25,000 square meters, housing 53 loading and cross docks. It operates around the clock to provide cross dock operations, storage, multi-modal transfer and data management for customers.

"With a well established hub and spoke network, and a fleet of 1,500 vehicles, DHL provides a full suite of domestic services in China," said Paul Graham, chief executive officer of DHL Supply Chain Asia Pacific. "This includes national line-haul services, inter-regional distribution and inner-city delivery services."

The hub is capable of handling 262,000 tons of shipments annually through its cross dock operations.

The Shanghai facility is the fifth regional transport hub of DHL after Beijing, Guangzhou, Tianjin and Wuhan, and DHL plans to build 10 more hubs nationwide this year, including in Chengdu, Fuzhou, Guangzhou and Hangzhou.

The revenue of the domestic road transport industry in China accelerated 66 percent to US$25 billion from 1998 to 2007. It is seen to grow 7.1 percent annually to reach US$36 billion by 2013, according to ACMR and IBISWorld China Industry Report.


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