Logistics giant DHL Supply Chain is expanding its Philippines operation, reports PortCalls.
The €80 million expansion includes the ongoing construction of the 50,000-square-meter Sta. Rosa Logistics Center in Calamba, Laguna which opens in 2024, and the construction of a 20,000-sqm facility in the Greater Manila Area in 2025.
In an interview with Business World, DHL Supply Chain Southeast Asia chief executive officer Andries Retief says these facilities will help leverage both the retail markets and the semiconductor or technology markets in the Philippines. “This helps us drive our footprint in these markets and deliver our service to these customers at a high quality,” says Retief.
Supply chain activities
Retief adds that the company sees many growth opportunities in the Philippines, especially in its strong retail market.
“In the Philippines, we also have a joint venture where we are working on transportation with a local company where they bring us the market knowledge and we bring them the logistics expertise and that way we have the best of both worlds and we are able to expand our footprint around transportation in the Philippines,” says Retief.
In addition to the expansion project, the company’s transport fleet will be boosted by 25% to over 2,000 trucks, through DHL Summit Solutions Inc. (DSSI), DHL’s joint venture with Philippine conglomerate JG Summit Holdings, Inc. DSSI was formed in 2019 to provide domestic transportation, logistics, warehousing and distribution of cargo and other supply chain management activities.
Logistics industry in Philippines
Ken Research, a market research company, reports that the growth of e-commerce in the Philippines along with infrastructural improvements in the logistics sector are some of the major factors contributing to the development of the country’s logistics market.
“The Philippines’ logistics industry is expanding and it contributes 4-6% to the country’s overall GDP. Food and Beverage, manufacturing, electronics, automotive, pharma, and other sectors contribute significantly to the Philippines’ logistics market’s revenue,” reads the report.
The report adds that after years of neglect, the Philippines railway network is seeing a revival. “The Department of Transportation was allotted $1.3 billion to focus on the construction of rail, land, public, and maritime infrastructure, which has resulted in the growth of the logistics and shipping industry in the Philippines,” reads the report.
Also read: DHL opens e-commerce warehouse in Germany
Last-mile delivery market
GlobeNewswire reports that the last-mile delivery market is expanding. “The adoption of diverse last-mile services, evaluation of incurring costs of sold items, and expansion of the omnichannel inventory selection are a few of the variables that are anticipated to facilitate the growth of the last-mile delivery transportation market,” reads the report.
The report adds that customers and businesses are paying more attention to last-mile logistics which will make them stand out in the market.
“Together with the rise in international shipping via digitally advanced supply chains and Omni channel modes, the significance of last-mile techniques that are ultramodern in nature to shippers and customers is increasing,” reads the report.
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
