DHL Chooses Shanghai, and CMA CGM Chooses Xiamen

Monday, November 26, 2007 15:59
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Nearly 6 months have passed since DHL announced that it was down to Shanghai and Inchon.. and today DHL announced that they will build their 6th Asian hub in Shanghai.

Coming as no surprise given the importance of China to logistics providers, this new hub will certainly provide a higher level of quality to DHL’s customers in China.

The 55,000 square meter (592,000 square foot) hub, DHL’s sixth in Asia, will be able to handle as many as 20,000 parcels and 20,000 documents an hour, the company said.

Over the last few years, much has changed in China, and the express carriers have been no exception. to date, I would have to say that FedEx’s move of buying up their remaining shares of Datian has been the strongest investment I have seen to date, and while they may not be fully utilizing the lanes yet, they are able to provide next day morning deliveries to 32 cities… something the others cannot match.

But.. as the tortus and the hare taught us as kids, FedEx will have to keep running hard in order to remain ahead. UPS has also committed to a Shanghai hub, and they have been quite active on establishing their retail presence too…. and I have yet to even mention the Chinese and HK players that are also investing.

On the heavy side of logistics, CMA CGM also made a big commitment to Xiamen’s port.

Under the agreement, CMA CGM and its partners will construct and manage a deep water container terminal which will become operational in 2009

This is an important step for CMA CGM who have until this point remained fairly asset-lite.. they do not own their own warehousing or trucks.

As I have said time and time again, logistics is one of the most dynamic industries in China, and I would expect to see more news in this sector. There is still a long way to go before this sector matures, and as I highlighted last week… logistics is critical to the long term development of a nation

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