DHL Express to invest Tk 250cr to expand operations

DHL Express, the world's leading express mail service provider, will invest Tk 250 crore to build a new facility for incoming and outgoing shipments in Bangladesh to cater to the growing demand for logistics services.

The deal is a part of the company's investment plan for the Asia Pacific region, which is worth about $900 million.

From 2020 to 2022, DHL Express Asia Pacific spent close to $830 million on infrastructure development across key markets in the region to increase the capacity and efficiency of its operations.

Around $72 million was also committed to boosting the company's air network with new aircraft and routes.

The investment comes at a time when the airline industry has taken a big hit due to the decreased demand for passenger flights amid the ongoing coronavirus pandemic.

However, the air cargo sector remains comparatively unharmed by the Covid-19 fallout.

With this investment, DHL Express Bangladesh will establish the new facility.

The facility, which is expected to open in March, 2022, will bring about a 35 per cent increase in the company's shipment processing capacity.

"The facility will not only increase our current capacity, but also provide the scope for further expansion," Md Miarul Haque, managing director of DHL Express Bangladesh, told The Daily Star yesterday.

"As we have always been optimistic about the business outlook of Bangladesh, we generally invest ahead of the curve so that we are better prepared to support the country's economic growth," he added.

The managing director also said that DHL became the global leader in its sector by investing in and implementing new technologies for greater efficiency.

The new state-of-the-art facility will accommodate the country's increasing volume of shipments, which is a result of organic economic growth, industry diversification and cross border e-commerce development, according to Haque.

The modern facility, which is located in the Kuril Bishwa road area in Dhaka, will meet global standards and all other security, efficiency and productivity requirements by minimising the errors which often occur at cramped facilities. The new addition will take the number of DHL service centres in the country to six, which are spread between Dhaka and Chattogram.

The express mail service company picks up shipments from a sender's doorstep before processing it at a service centre. This includes a thorough scanning with an explosive detection system that meets EU security standards.

"We want to serve our customers better and we look forward to growing together with Bangladesh," Haque said.

These investments are a testament to DHL's continued confidence in the region, according to Ken Lee CEO of DHL Express Asia Pacific.

"They are crucial not only in the near term as we expect to tackle an unusually strong peak season, but it will make sure that we are well-positioned in the long run to keep global trade running as e-commerce and cross-border trade grows," he said.

DHL Express began its journey in Bangladesh in 1979 as a direct subsidiary of Deutsche Post DHL Group, an international service portfolio consisting of letter and parcel dispatch, express delivery, freight transport, supply chain management and e-commerce solutions.

DHL Express is ready for the historic 2020 peak season with an expected 30-40 per cent increase in shipment volume, according to a statement from the company.

DHL Express currently has 23 dedicated aircraft in its Asia Pacific fleet, which operates approximately 1,040 flights per day.

The company will be adding a new Airbus A330-300P2F to this fleet next February as well as a new Boeing 737-800F in March.

Globally, the company has significantly increased the number of its daily flights.

This includes the addition of four new Boeing 777F wide-body aircraft to its international fleet with two more expected to be delivered next month.

These six additional aircraft will enable DHL Express to carry out more than 3,000 intercontinental flights per year.