DHL Keeps Shanghai on its Toes

Monday, May 14, 2007 20:20

Like the process of picking an Olympic city, The China Daily is reporting that Shanghai and Korea are in the running for DHL’s Asia hub. As per the article entitled Shanghai Awaits DHL Decision:

Jerry Hsu, president of DHL Greater China and South Korea, told China Daily yesterday in Beijing that his company will announce the Northeast Asia regional hub within two months, and Shanghai and a South Korean city are in the running for the status.

According to Hsu, the critical components of the decision process are.

“We are still evaluating factors like landing rights, oil prices and local infrastructure, and will make a decision soon,” said Hsu.

Interesting he didn’t mention the long await release of China’s New Postal Law…. and its potential impact on the letter business… or Labor law… which could significantly change their HR cost equation depending on what comes out of the shoot.

Rumor has it that one of the other air express carriers (hint: It is either UPS, FedEx, or TNT) have begun pulling resources out of China and are restructuring in Singapore. I have yet to confirm who is moving, expats are involved, the size of the restructuring, or the reasons behind the move (they have been running at par for the course in terms of success).
More to come from DHL for sure … but in the meantime, Agility has acquired ocean-freight forwarder, Guangzhou Runtong International Transportation Company Limited (GRITCL) more here

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One Response to “DHL Keeps Shanghai on its Toes”

  1. Shanghai or South Korea? » Third Party Logistics News - 3plwire says:

    May 16th, 2007 at 4:49 pm

    […] All Roads Lead To China has a nice post on how officials in China are eagerly awaiting DHL’s decision to place it’s Asia hub – the choice is down to Shanghai or a South Korea city. He also mentions that China’s new postal law and labor law could significantly alter DHL’s costs in China and already has some other express companies shifting resources: Interesting he didn’t mention the long await release of China’s New Postal Law…. and its potential impact on the letter business… or Labor law… which could significantly change their HR cost equation depending on what comes out of the shoot. […]

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