Monday, 16 November 2009

DHL expands RP back office operations

VG Cabuag
Business Mirror

DEUTSCHE Post DHL will prop up back office operations in the country as it sees the Philippines as an important part to the company’s regional operations, even if cargo volume in the country is one of the lowest in the region.

DHL said it will expand back office operations in Manila and will capitalize on the “knowledge competencies” of the Filipinos as the logistics company prepared to diversify regional operations aside from just moving letters and parcels.

Sam Ang, chief executive officer of DHL Global Forwarding, said the current back office in Manila has a capacity of about 200 people, but only 40 to 75 people are currently employed.

“The Philippines is a market that has growth potential in terms of global forwarding services but its also a center of excellence for the all other markets in which we operate in the world,” said Amadou Diallo, chief executive officer of DHL’s Global Forwarding in South Asia Pacific.

Diallo hinted that if they reached the center’s full capacity by the end of the year, there is a possibility hiring more people and expanding the number of seats by next year.

The back office provides customs services to all air and ocean freight services of DHL out of Singapore, where the company has its second-biggest hub in the region servicing some countries in Southeast Asia and Australia.

Ang said they are diversifying their operations in the region to tap other markets such as the oil and energy sectors as well fashion goods.

“What we do is diversification of goods to support the whole expansion process [of DHL] and to capitalize talents on the literacy levels of Filipinos,” Ang said.

On Friday, DHL announced it is diversifying operations to tap the multibillion-dollar oil and energy logistics sector. It has also launched its dedicated center in Singapore employing about 200 people for the oil and energy sector to serve Asia-Pacific customers.

“DHL’s focus on the oil and energy sectors—spanning both fossil and renewable energies—is timely as the industry currently spends about €260 billion ($388 billion) on logistics globally,” the company said in a statement.

World energy demand by 2030 is expected to grow 74 percent from 2005 levels, of which China alone is expected to account for 30 percent of that growth. The industry is expected to attract an average of $895 billion a year in investments through 2030.

DHL officials said they will be focusing on tapping the Malaysian and Indonesian markets, both of which are major oil producers in the region.

DHL lags behind United Parcel Service and Federal Express, but the German-owned firm hopes to target the movement of freight through air, sea, and land transportation.

“Expansion in alternative energy sources—wind, solar and geothermal—also present opportunities for growth, particularly in Asia. Today, China has the fourth-largest installed base of wind power in the world, and by 2015, it will be the world’s largest. The region has a strong track record of supporting exploration and investment in alternative energy to satisfy growing demand, support domestic industry and preserve the environment,” Hans Toggweiler, global head of oil and energy at DHL Global Forwarding, said in a statement.

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