DHL Express Philippines has invested P79.2 million in its new South Service Center in Las Piñas City to tap into the growing logistics demand of businesses in Southern Luzon.
DHL Express Philippines country manager Nurhayati Abdullah, in a press conference on October 30, said “the opening of the new South Service Center marks the continued commitment of DHL Express in the Philippines following the successful opening of Clark Service Center in Northern Luzon area in February.”
DHL Express Philippines is the local express service provider of mail and logistics giant Deutsche Post DHL.
Abdullah said the “investment in Las Piñas reaffirms our commitment to upgrade our services to meet the changing demands of our customers.”
Noting that Las Piñas City is a gateway for many industries such as those in electronics, semiconductors, and manufacturing, Abdullah said the service center will account for 15% of DHL Express’ total volume and revenue in the Philippines, as she sees the growth of small and medium enterprises (SMEs) in the area.
Covering a land area of 3,068 square meters, the South Service Center is expected to serve customers in the cities of Las Piñas, Pasay, and Parañaque, as well as those in the province of Cavite, specifically in General Trias, Trece Martires, Tanza, Bacoor, Imus, Noveleta, Kawit, Cavite City, Dasmariñas and Silang.
Abdullah noted that with its location, the facility will likewise benefit locators in free trade zones in the south, such as the Gateway Business Park in General Trias, Cavite; Philippine Export Zone Authority (PEZA) in Rosario, Cavite; and First Cavite Industrial Estate (FCIE) in Dasmariñas, Cavite.
Walk-in customers may also drop their packages at the DHL retail outlet inside the facility.
The facility comes with 23 trucks, state-of-the-art material handling equipment, and internet protocol cameras. To enhance security, it will be equipped with 30 CCTV cameras capable of tracking shipments as they go through the entire process cycle. The service center has the capacity to handle four to five years’ volume and 1,000 packages per hour, Abdullah noted.
With the Las Piñas facility, DHL now has eight service centers in the country.
Double-digit growth seen
Abdullah expressed confidence in DHL’s Philippine operations as she forecast double-digit growth in revenue and volume for this year.
“DHL takes a long-term view of the Philippine market as it holds great potential for growth and trade with GDP forecast to grow at an average annual rate of 5.9% in 2015-2019,” she said.
She added that since one of DHL Express’ growth thrusts is SMEs, it partnered last year with GoNegosyo, a nonstock, non-profit organization, to extend special programs to support their growth SMEs.
Aside from the new service center, DHL Express plans to expand its retail footprint in the country next year, particularly in Quezon City and Cebu. Work for the retail outlet in Cebu has already started and will be officially launched next year, Abdullah added. Moreover, she earlier said P42 million would be spent to enlarge the facility at Ninoy Aquino International Airport Terminal 3, where DHL planes land and take off.
In 2013, the group said the Philippines was one of its key growth areas for which it plans to invest US$25 million over the next two years. – Text and photos by Roumina Pablo