“Southeast Asia is definitely a rising star in the eCommerce sector” says Ken Lee, CEO, DHL Express Asia Pacific.
“Southeast Asia is definitely a rising star in the eCommerce sector” says Ken Lee, CEO, DHL Express Asia Pacific.
ACW: In what ways has DHL had to ramp up operations to deal with the e-Commerce boom in Southeast Asia region?
Ken Lee: In April, we announced the expansion of our Asia Pacific air network capacity with the dedication of flights to serve growing shipment volume between Asia Pacific and the U.S. and Europe. We also adjusted our flights and changed our original flight route of Hong Kong- Ho Chi Minh City- Penang to direct flights from Hong Kong to Ho Chi Minh City and Penang.
These are all steps that we have taken to bolster our flight network, in order to meet increasing shipment demand that we’ve seen in the region. In fact, we announced last year that we are investing across Asia Pacific close to EUR690 million to enhance our ground infrastructure and more than EUR58 million to boost our air network with new aircraft and new routes. Southeast Asia is definitely a rising star in the e-Commerce industry but we are also seeing immense e-Commerce opportunities across the wider Asia Pacific region.
ACW: What long-term investments is DHL making in the Southeast Asia region to cope with this e-Commerce growth?
Lee: In our recently released preliminary results for the second quarter of 2021, we announced that the cumulative outlook for gross capex of the Deutsche Post DHL Group for the period 2021 to 2023 is at around EUR 11.0 billion.
In addition to the investments that we are making to strengthen our infrastructure, air network and operations, we are also making continued investments in technology and digitalisation. For instance, at our South Asia Hub in Singapore, we are already using Automated Guided Vehicles (AGVs), These AGVs intelligently sense the environment around them and assist our employees with the moving of shipments, palettes of cargo and containers – done so efficiently and safely. We supplement traditional forklifts at the Hub with these AGVs, which are able to lift up to one ton, thereby helping us to scale our throughput capacity up or down as and when needed.
To help our teams become more efficient in monitoring the movements of our shipments, we have also deployed a new system called the Advanced QCC (Quality Control Centre). It utilises the latest technologies in artificial intelligence, big data referencing and routing, as well as automated systems so that our employees are able to monitor the shipment movements, flag issues in real-time, and recommend alternative flight routes, when needed.
We have and will continue to hire more employees to cope with the increased demand for Express deliveries. However, most importantly, we stand ready to observe and respond to the industry and customer needs so that our customers continue to receive our high quality of service.
ACW: What are the established e-Commerce routes and markets in the region and what potential markets is DHL planning to tap into?
Lee: We are seeing an increase in shipment volume demand from Penang and Ho Chi Minh City, which is why we have made adjustments to our flight routes to cater to this growth. Besides this, Hanoi is coming into play more now.
We have previously expanded our Vietnamese operations in 2020 with the addition of four new service points in Hanoi and Ho Chi Minh City. We are next looking at refurbishing an on-airport facility in Hanoi and adding two service centres in the city.