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DHL allots €80M for Philippine expansion

An artist’s rendering of DHL’s planned logistics hub in Sta. Rosa, Laguna. — COURTESY OF DHL

By Luisa Maria Jacinta C. Jocson, Reporter

PENANG, Malaysia — DHL Supply Chain is committing €80 million (P4.8 billion) for its Philippine expansion, as it plans to invest €350 million in Southeast Asia in the next five years.

DHL Supply Chain Southeast Asia Chief Executive Officer Andries Retief said the company would put up two new facilities in the Philippines.

“The Sta. Rosa facility of approximately 50,000-square meters (sq.m.) will be the biggest investment we’ve made in the country in our history in DHL Supply Chain,” he said at a media briefing here.

The Sta. Rosa Logistics Hub will serve as a built-to-suit warehousing storage.

DHL is also planning to develop another 20,000 sq.m. facility, likely to be located within the Greater Manila Area, in 2025.

“It helps us to leverage both the retail markets (and) the semiconductor or technology markets in the Philippines, and that helps us drive our footprint in these markets and deliver our service to these customers at a high quality,” Mr. Retief said.

DHL’s investment is also expected to generate 1,000 jobs in 2024, mainly related to warehousing and transportation.

The contract logistics solution company said all of its facilities in the Philippines would be fitted with environmentally friendly features. DHL has 20 locations with a total of 280,000 sq.m. in the Philippines.

“It will also be fitted, as with every one of our facilities, in such a way that ultimately the facility achieves carbon neutrality,” Mr. Retief said.

For example, the Sta. Rosa Logistics Hub will include rainwater harvesting, solar panels, and built-in electric vehicle charging stations.

“We see many growth opportunities in the Philippines, especially in its strong retail market. Our investments in warehousing and transport capabilities are tailored to support this sector’s growth,” he said.

DHL said it has partnered with Gokongwei-led JG Summit Holdings for its joint venture, DHL Summit Solutions, Inc. (DSSI).

“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,” Mr. Retief said.

DSSI also aims to increase its transport fleet to more than 2,000 trucks, or more than 25%, to expand its coverage of delivery networks.

Meanwhile, DHL said it plans to increase its 1.6 million sq.m. warehouse space in Southeast Asia by 25% to 2 million sq.m. in the next five years.

Malaysia will receive the biggest investment from DHL with €131 million. DHL will add four new facilities, including two in Penang. It has 23 locations in Malaysia.

DHL will invest €104 million to add two new facilities in Singapore, where it has 17 locations.

The company is allocating €35 million for its expansion in Indonesia, where it has 72 facilities.

DHL said 10% of its global locations are in Southeast Asia.

Neil Banzuelo

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