The Decision Factors for DHL to Select A Global/Regional Logistics Hub Dr. Kelvin Leung CEO Asia Pacific, DHL Global Forwarding The Hong Kong Polytechnic University, June 2013
Logistics Hubs Are intermediate points between origins and destinations, shipments are transferred via logistics hubs via different combinations of transportation models, functions of logistics hubs include: Transshipment Origin Hub Hub Destination Collection/ Distribution Origin Hub Hub Destination 2
Logistics Hubs Consolidation/ Deconsolidation Hub Hub Origin Destination 3
Logistics Hubs Complex Network Origin Destinations 4
DHL Logistics Hubs- Asia Connect Asia Connect ASIACONNECT Asia Connect provides Less-Than-Truck-Load (LTL) service covering Singapore, Malaysia, Thailand, Vietnam, and China. DHL HUB Concept Border Customer Focus Market Oriented Distribution Center Johor Bahru Penang, technology company cluster Malaysia: Kuala Lumpur Thailand: Bangkok Vietnam: Ho Chi Minh, Hanoi Shenzhen and Shanghai for China inland transportation 5
DHL Logistics Hubs- China Domestic Transport Network DHL HUB Concept To Europe District Hub Beijing / Shanghai / Chengdu / Shenzhen / Urumqi URC HRB CGQ Modal Shift Point Urumqi / Chengdu: China- Europe rail hub XNN INC LHW HET BJS TSN TYN SJW TAN SHE DLC TAO LXA CTU CKG XIY CGO WUH NKG HFE SUZ SHA NGB HGH KMG CSX KWE NNG CAN KHN FOC XMN SZX HAK 2 Railway Hubs Coverage BJS - North China SHA - Shanghai & East China 3 Road Hubs SZX - South China including HKG CTU - Central West China URC - Urumuqi - Xin Jiang 6
DHL Logistics Hubs- Rail Network DHL HUB Concept District/ Region Hub Modal Transit Point Beijing / Shanghai / Chengdu / Shenzhen / Malaszewicze Chengdu: Road-rail hub Malaszewicze: Europe distribution hub, rail-road transit point West corridor via Chengdu provides shorter transit time while North corridor via Shanghai offers cost efficient solutions. Malaszewicze in Poland serves as Europe distribution center 7
DHL Logistics Hubs- Air Freight Gateways DHL HUB Concept Gateway Air freight US shipments Primary Gateways are usually sent to gateways to best utilize dense/volumetric cargo consolidation in order to achieve cost efficiency. Gateways are usually major cities that are close to markets with complete transportation network LAX ORD ATL JFK LHR AMS BRU CDG FRA MIL VIE DFW MIA US Primary Gateways Europe Primary Gateways 8
DHL Logistics Hubs- Ocean Freight Multinational Gateways DHL HUB Concept Multinational Gateway Ocean freight Less-Than-Container-Load (LCL) shipments are usually sent to multinational gateways to consolidate into containers that head to the same destinations or deconsolidated again in other multinational gateways. Bremen Los Angeles Antwerp Koper Dubai Hong Kong Busan Colombo Singapore 8 Global hubs 9
DHL Logistics Hubs- RAILAIR DHL HUB Concept Technical Stop Baku: Carriers make technical stop at Baku in order to complete flights between China and Europe. 10
DHL Logistics Hubs- SEAIR From Asia to Europe and Middle East From Asia to Central and South America From Asia to Middle East and Africa DHL HUB Concept Geographical / Tactical Point Dubai as the mid-point to Asia, Europe, and Africa Sydney with direct flights to Latin America Ocean Air Inland Trucking Infrastructure Dubai has complete infrastructure that connects airport and sea port, benefiting modal transfer and shipment consolidation/ deconsolidation 11
Factors to Consider Supply of talents Compliance Infrastructure e.g. warehouse, airport, seaport Capacity supply and frequency Connectivity Reliability Manufacturing Base Customs Clearance Choice of carriers Taxation Cost 12
Questions? 13
Thank You! 14