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With this latest development, the global logistics and express player aims to meet demands for its services from companies in the healthcare, life sciences and aviation sectors.
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(L-R) John Allan, Global CEO, DHL Logistics Division and S Iswaran, Minister of State for Trade & Industry.
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The DHL Group looks set to cement its position as Singapore's largest logistics and express player and global leader in the air, ocean freight and contract logistics industry with the set-up of its Logistics Division's regional HQ here.
All activities of DHL Global Forwarding and DHL Exel Supply Chain now operate out of Gateway Tower where 400 employees manage logistics operations in over 25 countries, providing customers with the transparent, flexible and efficient services DHL has come to be known for.
This move follows DHL's acquisition of British logistics group Exel for some S$11.6 billion (US$7.6 billion) in September 2005. It led to the integration of some 110,000 employees at an estimated 2,250 sites worldwide, and was touted as one of the biggest mergers in the industry's recent history.
DHL's decision to base its regional operations in Singapore was fuelled by the company's strong presence here. Operations were first set up in the 1970s, and to date, DHL Singapore has over 3,100 employees and 200 vehicles which service over 30,000 customers.
"DHL's choice, once again, of Singapore, is based on the country's world-renowned efficiency, extensive connectivity, excellent infrastructure and great human capital," says John Allan, Global CEO, DHL Logistics Division.
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(L-R) Humberto Florez, CEO, DHL Exel Supply Chain, Asia Pacific; Florence Noblet, SVP, DHL Global Customer Solutions Asia Pacific; S Iswaran, Minister of State for Trade & Industry; John Allan, Global CEO, DHL Logistics Division; and Peter Landsiedel, CEO, DHL Global Forwarding Asia Pacific.
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EXCITING TIMES AHEAD
DHL will no doubt capitalise on the synergies of these business units' joint location to drive their growth in Asia-Pacific.
And the future remains promising. More than half of the expected growth in world trade over the next five years will be from Asia, driven by growing markets such as China and India, and DHL looks to leverage Singapore's excellent location to gain a foothold in these markets. Asia also enjoys a strong affiliation to two sectors DHL has targeted for operational development; the region is the source of about half of the world's projected orders for aircraft, and home to a significant number of life sciences production sites.
Says Allan, "The biggest growth opportunity is here in Asia for us and for many other companies. It's growing faster than the business as a whole, and we believe it will continue to grow substantially faster than the overall business which we expect to grow in high single digits annually." He adds that he expects DHL to grow globally by up to nine per cent annually, and to see strong growth in terms of demand for logistical services from the healthcare and aviation industries.
This is in line with DHL's recognition of Singapore's potential as a major pharmaceutical and life sciences hub for Asia-Pacific. Last year, DHL Exel Supply Chain invested in a Life Sciences hub here that specialises in the handling and supporting of clinical trials, cold-chain management, hospital logistics, temperature-controlled and dangerous goods storage. There are already plans in the pipeline to further expand DHL's facilities at Changi in order to meet the region's increasing supply chain demands. Talks are also underway with various aerospace manufacturers to provide logistical support.
Opportunities are also expected from the healthcare sector, given the rapid growth of the industry in response to coping with an ageing population. As more and more high-quality drugs and medical services become the order of the day, DHL will be a reliable partner in helping healthcare and life sciences companies meet their challenges.
SECURING THE FUTURE
Through this milestone in her long-standing collaboration with DHL, Singapore also stands to gain. Home to over 7,000 MNCs, DHL will be joining 60 per cent of these that have regional management activities here, reinforcing the Republic's position as a conducive business environment.
Besides this, Singapore's vision to be an integrated global logistics gateway in Asia is given a significant push by DHL's commitment to raising the nation's competitive edge in the supply chain management (SCM) arena. Singapore hopes to work closely with logistics companies to develop competencies in innovative and sophisticated SCM expertise and meeting their global supply chain challenges, while sharpening its expertise in this area, invariably improving the nation's standing in this industry. The possession of in-depth knowledge derived from the nation's established logistics industry, supported by excellent connectivity and top-of-class infrastructure, puts Singapore in good stead.
It looks like this industry can expect more key business collaborations in the near future.
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