MEDIA RELEASE PR41708
DHL Breaks Down Barriers to Emerging Market Growth
SINGAPORE, Oct. 12 /PRNewswire-Asia-AsiaNet/ --
Private sector, government and logistics industry collaboration vital to realize
potential economic success
With the world economy pinning its hopes on emerging markets to power growth and
recovery, DHL, global market leader in the logistics industry, has identified three
main barriers limiting potential success: high customs costs, slow market
liberalization and under-developed distribution channels.
Rob Siegers, COO, DHL Global Customer Solutions, said: "Twelve emerging
'Hotspots', identified in the IMF World Economic Outlook released earlier this year,
have a greater growth potential than the main economies of the developed world
combined. While this is something to cheer about, a closer look at supply chain
logistics is vital to ensure that these economies can deliver on their growth promises
in the short and long-term."
As the global expert in international express, air and ocean freight, road and
rail transportation and contract logistics, DHL plays a key role facilitating trade
between more than 220 countries and territories, including all emerging and key
economies. As a result, DHL believes that to meet anticipated growth and increasing
logistics needs, emerging markets will need to rapidly increase network capabilities
along all modes of transport infrastructure, speed market liberalization and free
trade zone development, and slash customs costs.
Richard Owens, CEO, DHL Global Customer Solutions, Asia Pacific, said: "In Asia
Pacific, almost 15 per cent of supply chain costs are still related to customs and
regulations procedures, compared to just three per cent in Europe. As logistics is the
backbone of worldwide trade, easing the movement of goods and services via better
logistics processes, infrastructure systems and government policies in these markets
will allow emerging markets to reach their goals on schedule.
"Key growth industries such as textiles and garments, pharmaceuticals and
renewable energy also need to play a part in driving improvements and sustainability
in the supply chain."
A study by the World Bank suggests that the logistics performance of a country has
a relatively high impact on any country's economic and trade growth vis-a-vis its
peers at the same level of development. DHL, as an industry leader, has made
sustainable development a priority and it aims to improve carbon efficiency by 30 per
cent by 2020.
Owens added: "For long-term success, emerging markets need to put sustainable
supply chain solutions high on the agenda. From moving diverse cargos and commodities
to supporting infrastructure energy-related projects to complex customs clearance, the
logistics industry can play a critical role in enabling emerging markets to continue
their upward trajectory in regional/global integration by supporting, investing and
expanding logistics capabilities ahead of the demand curve."
"Hotspot" economies include Mexico, Turkey, Russia, mainland China, Korea, Taiwan,
Thailand, India, the United Arab Emirates, Saudi Arabia, South Africa and Brazil.
Together, they are expected to achieve an average GDP growth of 7.2 per cent in 2015,
compared to the projected 2.1 per cent of the G-7 nations. The combined GDP of these
"Hotspot" economies is expected to command a 38 percent share of global GDP by 2015 --
two per cent more than the G-7's global GDP. Last year, the average GDP growth for
these hotspots stands at 2.8 per cent, compared to -3.4 per cent for the G-7 nations.
Global GDP market share was 32 per cent, just 9 per cent lower than the G-7's stake.
Other emerging market challenges identified by DHL include: fragmented markets;
political volatility, youthful, growing population with limited income, language and
communication issues and large socio-economic divisions within populations.
To maintain a competitive edge during this transformation stage, companies doing
business in or with emerging markets need to partner an experienced logistics
provider. In a 3PL survey conducted by DHL in 2006 over 80 per cent of respondents
indicated that they rely on providers such as DHL to gain local market knowledge as
they expand their operations into emerging markets such as China, for example. Since
then, the number of companies which engage DHL to design their supply chains has risen
-- and continues to rise -- especially in markets such as India, Vietnam, Middle East,
Latin America and Russia.
- End -
DHL -- The Logistics company for the world
DHL is the global market leader in the logistics industry and "The Logistics
company for the world". DHL commits its expertise in international express, air and
ocean freight, road and rail transportation, contract logistics and international mail
services to its customers. A global network composed of more than 220 countries and
territories and about 300,000 employees worldwide offers customers superior service
quality and local knowledge to satisfy their supply chain requirements. DHL accepts
its social responsibility by supporting climate protection, disaster management and
education.
DHL is part of Deutsche Post DHL. The Group generated revenue of more than 46
billion euros in 2009.
For the latest news and happenings about DHL in Asia Pacific, visit
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