DHL expands China warehousing
DHL plans to expand and upgrade its warehousing to take advantage of increased business in China's contract logistics market.
Its Supply Chain division 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 operates across the country. In the past few years, DHL Supply Chain has invested more than 800 million RMB (about $124.5 million) in China.
'Rapid urbanization, strong domestic demand and the boom in online consumption is continuing to expand the market potential particularly in sectors of automotive, consumer, health care, retail and technology, and further boost demand for domestic transportation services,' said Victor Mok, chief executive officer of DHL Supply Chain North Asia. 'Total revenue from the domestic road transportation industry in China rose 67 percent between 1998 and 2007, from 12 billion euros ($17 billion) to 20 billion euros ($28 billion), and it is projected to reach 28 billion euros ($39 billion) in two years' time.'
DHL Supply Chain operates more than 15 warehouses in major Chinese cities. More warehouses are expected to be ready in other cities including Wuhan and Chengdu.
'China's manufacturing base is quickly shifting into its western regions and DHL is actively responding to this trend by expanding our presence there,' Mok said. 'Our planned multiuser logistics centers in Wuhan and Chengdu will facilitate the expansion of production bases into the inland cities by providing time and cost-effective inbound-to-manufacturing logistics services.'