DHL opened its new DHL Eastern China Domestic Transportation Hub in Shanghai, as part of a US$25 million investment that strengthens DHL’s expertise in the domestic road transportation and distribution market in China, and taps on the growth of the domestic road industry.

The domestic market in China has been growing strongly due to improved purchasing power of the local population. Total revenue from the domestic road transportation industry in China rose 66% between 1998 and 2007, from US$15 billion to US$25 billion, and it is projected to reach US$36 billion by 2013 at an annual growth rate of 7.1%.

The Chinese government has also recently released a roadmap for developing Shanghai into an international shipping center. This is expected to boost demand for domestic transportation services in order to deliver goods from inland production bases to the ports and airports, as well as distributing imported goods to end consumers in the cities.

‘The launch of the DHL Eastern China Domestic Transportation Hub in Shanghai reflects our continued confidence in China and commitment to be the best integrated logistics solutions provider,’ said Frank Appel, Chief Executive Officer, Deutsche Post DHL. ‘We are confident that this new hub will enhance our competitive edge in managing domestic transportation and distribution, enabling DHL to continuously meet and exceed our customers’ expectations.’

Situated at the Kangqiao Industrial Park, the heart of the fast-growing Pudong area, the DHL Eastern China Domestic Transportation Hub is one of the five regional hubs owned and operated by DHL Supply Chain in mainland China. Together with another 15 sub-regional hubs across the country, the DHL Supply Chain domestic transportation network now covers more than 400 cities in China.

The 25,000 sqm new hub houses 53 loading and cross docks and operates around the clock to provide cross dock operations, storage, multi-modal transfer and data management for customers. The facility also houses the fleet control centre and customer call centre. The hub is located within the DHL Supply Chain Kangqiao Logistics and Transportation Center which provides value-added warehousing and distribution services.

“With a well established hub and spoke network, and a fleet of 1,500 vehicles, DHL provides a full suite of domestic services in China. This includes national line-haul services, inter-regional distribution and inner-city delivery services,’ said Paul Graham, Chief Executive Officer of DHL Supply Chain Asia Pacific.