DHL, the world’s leading logistics company, opened its new DHL Eastern China Domestic Transportation Hub in Shanghai, part of a US$25- million investment that strengthens DHL’s expertise in the domestic road transportation  and distribution market in China and taps on the growth of the domestic road industry.

The domestic market in China has been growing strongly due to improved purchasing power of the local population. Total revenue from the domestic road transportation industry in China rose 66% between 1998 and 2007, from US$15 billion to US$25 billion, and it is projected to reach US$36 billion by 2013 at an annual growth rate of 7.1% .

The Chinese government has also recently released a roadmap for developing Shanghai into an international shipping center. This is expected to boost demand for domestic transportation services in order to deliver goods from inland production bases to the ports and airports, as well as distributing imported goods to end consumers in the cities.

The new DHL Eastern China Domestic Transportation Hub in Shanghai is a huge direct advantage to the Philippine economy. The People’s Republic of China emerged as the Philippines’ third biggest market for April 2009 with shipments amounting to US$306.86 million and representing 11.0 percent of the total exports. On top of that, China is the second top trade lane for imports in the Philippines, next to the United States.

“The launch of the DHL Eastern China Domestic Transportation Hub in Shanghai reflects our continued confidence in China and commitment to be the best integrated logistics solutions provider,” said Frank Appel, Chief Executive Officer, Deutsche Post DHL. “We are confident that this new hub will enhance our competitive edge in managing domestic transportation and distribution enabling DHL to continuously meet and exceed our customers’ expectations.”

Situated at the Kangqiao Industrial Park, the heart of the fast-growing Pudong area, the DHL Eastern China Domestic Transportation Hub is one of the five regional hubs owned and operated by DHL Supply Chain in mainland China. Together with another 15 sub-regional hubs across the country, the DHL Supply Chain domestic transportation network now covers more than 400 cities in China.

The 25,000 sqm new hub houses 53 loading and cross docks and operates around the clock to provide cross dock operations, storage, multi-modal transfer and data management for customers. The facility also houses the fleet control centre and customer call centre.