DHL plans $84M investment in 4 ASEAN economies

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DHL Supply Chain will pour more than EUR70 million (US$84 million) in growing its regional footprint in Thailand, Vietnam, Cambodia, and Myanmar by 2020.

The logistics company, the first and only one to acquire an operational business license in Myanmar since last month, already benefits from a position of market leadership in Thailand and Vietnam, and will concentrate on Cambodia next for further growth opportunities, the company said in a release.

Over the next three years, the company plans to build new facilities, expand its fleet of trucks, and invest in new technology, creating an additional 5,000 jobs in the four member countries of the Association of Southeast Asian Nations (ASEAN).

“Asia-Pacific is one the most important regions for DHL Supply Chain, being accountable for a significant share of our revenues in 2016. Consumer, retail and tech industries drive these developments, becoming evident in increased amounts of new and extended contracts,” said John Gilbert, CEO of DHL Supply Chain.

DHL’s investment will also tap into the wider needs of a growing Thailand, an economy which is expected to return to accelerated growth. Government investment in mega projects including infrastructure developments, the Eastern Economic Corridor, and airport expansion works are attractive elements for foreign investors in Thailand, said the company.

Kevin Burrell, CEO of Thailand Cluster, DHL Supply Chain Thailand, explained, “With the technology and innovation that we invest in warehouse and transport operations in Thailand, coupled with our ability to deliver integrated solutions for customers, we are striving to drive enhanced value, which in turn acts as a strong differentiator for us in the market.”

The Thailand office also recently completed a move to new premises located in Bangkok’s business area. The company already leads in contract logistics in Thailand, and DHL’s nationwide network is comprised of a combined warehouse space of about 650,000 square meters across more than 70 facilities, supported by 10,000 employees. DHL has also employed intelligent systems in both warehouse and transport operations such as in automation and robotics, unmanned vehicles, vision picking, transport control tower, and telematics.

Burrell added, “We will continue to consolidate and support markets in which we lead, namely Thailand and Vietnam, and invest in markets where we aim to lead such as Myanmar and Cambodia.”

Photo: Kiensvay