Global express and logistics group DHL plans to invest $50 million in South Korea for capacity expansion and service capability enhancement. Since 2001, DHL has increased its investments in the country by almost 280%, from $18 million to $68 million, following the company's latest investment.
The bulk of DHL's latest investment will go into expanding its current DHL Express facility at Incheon Airport. The company also plans to upgrade and expand its service centers, introducing more than 100 new vehicles.
As I have touched on in the past, South Korea's government maintains its vision of establishing the country as a key logistics hub, if not the most advanced logistics hub, in the East Asia region. As a result, this investment is in line with encouraging private investment that supports this vision:
DHL's investment plan complements the South Korean government's vision of establishing Incheon as a preferred logistics hub to serve the region. According to the Ministry of Construction and Transportation, the volume of air cargo between South Korea and the neighboring region has shown a significant increase over the last five years, particularly the freight movement between South Korea and China.
"Our commitment to South Korea is largely driven by customer needs arising from a steady flow of trade volumes into and out of South Korea," said Scott Price, CEO, DHL Express - Asia Pacific. "We are confident that our robust network infrastructure, as well as our upgraded facilities, will not only serve the increasingly sophisticated needs of our customers, but will enable us to actively enhance our role as a trade facilitator to improve trade links between South Korea and the rest of the world."
I like the statement by Mr. Price in the last paragraph, because it pretty effortlessly zooms out from the ground-level infrastructural investments to the 30,000 foot level, big-picture view of DHL's influence in the region, and particularly in its established position in South Korea.