Deutsche Post DHL CEO, Frank Appel, has underlined the importance of emerging markets to the Group with a visit to South Africa and Nigeria this week.
During his stay, he met with employees and customers and visited several logistics facilities.
“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," Appel said.
"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 (GDP) and diversifying markets are only two of the many important indicators for this.”
A Group statement emphasised that DHL continues to significantly invest in Sub-Saharan Africa. DHL Express, 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.
In October 2014, DHL already announced investments totaling €30.5 million in South Africa, by both its Supply Chain (€14.5 million investment) and Global Forwarding divisions (€16 million investment).
"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."
For DHL Global Forwarding, the €16 million facility, located at the Plumbago Business Park (near Johannesburg's airport), boasts 12,000 sqm of warehouse space and 5,500 sqm of office space.
"A TAPA ‘A’ certified warehouse, the new premises are a world-class facility in South Africa, strengthening the country’s growth capabilities as the hub for distribution into the region."
With a €14.5 million investment, DHL Supply Chain’s 25,000 sqm multi-user warehouse facility (also located at the Plumbago Business Park) caters to its technology client portfolio, as well as some key fast-moving consumer goods (FMCG) clients.
“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,” Frank Appel added.