DHL announced it is investing 30.5 million Euros in its supply chain and global forwarding divisions in South Africa, as the company continues to focus on long-term growth plans through infrastructure, IT systems and services to support businesses operating in the region, the company said in a press release.
DHL will have two new facilities near the OR Tambo International Airport east of Johannesburg, including a warehouse with office space, and a multi-client supply chain facility. The supply chain facility will be used to consolidate DHL’s technology and fast-moving consumer goods client portfolios.
The warehouse operation will allow DHL to offer customers a range of value-added services such as bonded storage and re-packing, while expanding its air and ocean freight export handling capabilities.
“Part of our global strategy is to focus on further expansion of logistics services in the world’s emerging markets,” said Roger Crook, CEO, DHL Global Forwarding and Freight, and a director of Deutsche Post AG, in the release. “Today, emerging market revenues contribute just over 20% of the group’s revenues, but by 2020 we expect this figure to climb to 30%.”
“Our new investments are necessary to support our growth and expansion plans in South Africa,” said Twine Mtya, CEO, DHL Global Forwarding, Southern Africa. “In addition to our established air and ocean freight services, we have seen particular growth in our intermodal road network, spanning 12 African countries. Road freight volumes have more than doubled in the past year, spurred by increasing demand and economic growth on the continent.”