Shanghai--January 29, 2007 DHL, the worlds leading express delivery and logistics company, said it has launched its domestic airfreight service in China. To date, DHL Global Forwarding, one of DHLs business units providing air and ocean freight services, is the first international forwarder to obtain the CATA (China Air Transport Association) domestic airfreight license, allowing for operation within 17 Chinese cities. This is a key milestone for both the company and the domestic logistics market, previously served only by Chinese state-owned and local companies.
DHL Global Forwarding Domestic Airfreight is part of DHL Global Forwardings $20 million investment plan to further enhance the companys network infrastructure, human resources development, as well as products and services to meet anticipated business growth in China. With the airfreight launch and its First in China strategy, DHL is the only international logistics company offering both domestic express and domestic airfreight services.
China has become one of the most significant logistics markets worldwide, with an abundance of open regulations and huge growth potential. We are confident that the license to operate and gain entry into the domestic airfreight market will provide fresh opportunities and improved management of heavy airfreight from door to door for our customers, said Peter Landsiedel, CEO Asia Pacific, DHL Global Forwarding. The launch of DHL Global Forwarding Domestic Airfreight service is a strategic direction for us to expand westwards into second and third tier cities in China, allowing DHL to work more closely with our customers, who are developing their production base in the hinterland.
The Chinese logistics market consists of various segments: international airfreight, and ocean freight, domestic airfreight, international and domestic roads, international and domestic rail and inland waterway and warehousing. According to the latest Boeings World Air Cargo Forecast, the domestic airfreight market has grown at more than 20 percent every year since 1990, and is expected to double its current size in 2010. Chinas domestic air cargo market has become the second largest in the world with an annual growth rate forecast of 10.8 percent over the next two decades.
Currently, DHL has 17 domestic airfreight licenses, allowing for the provision of the DHL Global Forwarding Domestic Airfreight service in Shanghai, Beijing, Dalian, Shenyang, Qingdao, Tianjin, Chengdu, Xiamen, Wu Lu Mu Qi, Nanjing, Ningbo, Xian, Kunming, Hangzhou, Guangzhou, Shenzhen and Wuhan. A total of 30 CATA licensed branches/warehouses, covering 70 cities, are scheduled for development by DHL in the next five years.
DHL Global Forwarding Domestic Airfreight service brings along a full portfolio of services including Priority, Standard and Customized services to meet different demands. With a highly efficient IT system, extensive network coverage, customized solutions, value-added services and high security standards, DHL Global Forwarding Domestic Airfreight service provides a real one-stop solution for customers, achieving total pipeline visibility on domestic distribution and optimizing customers supply chain.
Partnering with major Chinese domestic carriers such as Air China Cargo, China Cargo Airlines, China Southern and Shanghai Airlines, DHL Global Forwarding Domestic Airfreight services guarantee premium service quality, competitive pricing and ensures block space allocation especially during peak seasons. DHLs strong solution design and quality control capabilities will prove beneficial to a number of key industries, including those of lifestyle, Electronic Equipment and Components, Audio/Video/Telecom, Automotive Components and Life Sciences.
DHL has a long-term commitment to China. Our state-of-the-art technology, customer-focused services, continuous investment in technology, and in-depth understanding of China provide us with competitive advantages. DHL will continue to strengthen our extensive networks and infrastructure to stand ahead of the curve in tapping the potential in the freight forwarding market, both in the region and in China, said Victor Mok, Senior Vice President Greater China, DHL Global Forwarding.
DHL has invested more than $1.7 billion in Asia Pacific in the past few years. DHL Global Forwardings existing network in China spreads over 44 locations with coverage extended to 23 cities.
DHLs mission is to provide the most flexible, personable and enjoyable experience in the shipping industry for our customers. DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source. DHL offers expertise in express, air and ocean freight, overland transport, and contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide with over 285,000 employees dedicated to providing fast and reliable services that exceed customers' expectations. Founded in San Francisco in 1969, DHL is a Deutsche Post World Net brand. For more information on DHL, please visit www.dhl.com.