Thursday, August 27, 2015

Logistics and Express Freight Forwarding Group Invests in Africa

CEO Tours the Region to View Facilities Personally
Shipping News Feature

AFRICA – GERMANY – In line with its group ‘Strategy 2020: Focus Connect Grow’, a programme designed to mould the company fortunes over the next few years, Deutsche Post DHL has emphasised the importance of emerging markets with a whistle stop tour by CEO Frank Appel to appraise the situation in Sub-Saharan Africa. The express freight forwarding and postal group boss visited South Africa and Nigeria meeting with employees and customers, and visiting several logistics facilities.

DHL says it continues to significantly invest in Sub-Saharan Africa, its DHL Express subsidiary, which operates across 51 countries and territories in the region, has a planned investment in excess of €17 million in 2015. Major projects underway include upgrades to facilities and shipment handling systems throughout the region. Frank Appel said:

"Today, emerging market revenues contribute over 20% to Deutsche Post DHL Group's revenues, but by 2020 the Group expects this figure to climb to 30%. Therefore, we will continue to concentrate on organic growth by investing into promising present and future markets.

“DHL already has a strong footprint in Africa, but we see some excellent opportunities to further increase our presence in the Sub-Saharan region. South Africa's exceptional geographic location as the gateway to Africa, and Nigeria's growing gross domestic product and diversifying markets are only two of the many important indicators for this.

"Staying close to the market and being responsive to customer needs are DHL's fundamental principles. We have established world-class facilities in Sub-Saharan Africa to support our global network, and I am delighted to witness first-hand the sustained efforts of our employees to deliver best-in-class services. We are committed to Sub-Saharan Africa and will continue to build on our successful four-decade legacy in the region."

In October 2014, DHL announced investments totalling €30.5 million in South Africa, by both its Supply Chain, a €14.5 million investment in a 25,000m² multi-user warehouse facility, and the Global Forwarding divisions €16 million investment in a TAPA ‘A’ rated terminal offering 12,000 square metres of warehouse space and 5,500 square metres of office space on the Plumbago Business Park, the company says these commitments signal the Group's long-term growth plans for the region as they bring state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa.