DHL, the world’s leading express and logistics company, has launched its First in China strategy on the kick off of the 20th anniversary of DHL-Sinotrans, China’s first international express joint venture. The First in China strategy reaffirms DHL’s long-term commitment to China and heralds further expansion of capacity and investment amid a boom in China’s express and logistics market.

The strategy was announced at a ceremony to launch the DHL-Sinotrans’ 20th anniversary logo, attended by Dr. Klaus Zumwinkel, Chairman and CEO of Deutsche Post World Net, DHL’s parent company, who was in China to mark the jubilee, and Mr Miao Gengshu, Chairman of the Board for the Sinotrans Group. Other senior management executives present included Mr. Zhao Huxiang, President of the Sinotrans Group; Mr. Scott Price, CEO of DHL Express - Asia Pacific; Mr. Jerry Hsu, President of DHL Express Greater China; and Mr. Wu Dongming, Managing Director of DHL-Sinotrans.

With First in China, DHL will execute a series of major initiatives in 2006, including investing about US$24 million to build the DHL-Sinotrans Headquarters, its flagship head office for its Express operations. With this investment, DHL has committed over US$900 million into its Greater China operations in recent years, including US$400 million in Air Hong Kong, its joint venture with Cathay Pacific; US$210 million in the Central Asia Hub, which serves Hong Kong and the Pearl River Delta; and US$273 million to expand and enhance its infrastructure network in China since 2003.

Under the First in China plan, DHL-Sinotrans will also increase the number of branches from the current 56 to 72 nation-wide, boosting its role as a trade facilitator and providing even more efficient support for the economic development among the different regions in China. Through a comprehensive upgrading of network, infrastructure and human resources capabilities, First in China will help DHL significantly strengthen its market leadership in China, and highlight its strong confidence in the Chinese market.

Dr. Zumwinkel said, “Over the last 20 years, DHL-Sinotrans has consistently proven to be the leader in innovation and network investment. Today, China has become one of the fastest-growing markets within DHL global network, and is strategically important to DHL’s Asia Pacific and global operations. By unveiling First in China, DHL is demonstrating its confidence in achieving even better results and delivering on its long-term commitment to the Chinese market through enhanced investment and partnership.”

Mr Zhao Huxiang, President of Sinotrans Group, said: “DHL is our first international partner to set up an express joint venture in China. We have shared an aligned vision ever since our first collaboration back to 1980, and especially enjoyed 20 years of success together. Sinotrans appreciates DHL’s recognition of the importance of the Chinese market, and we firmly believe that the 20th anniversary of DHL-Sinotrans will set up another milestone for our win-win cooperation.”

DHL-Sinotrans has scored impressive achievements in the 20 years of successful partnership, including recording an average annual growth rate of more than 40 per cent in the past few years. The company has consistently maintained and strengthened its leadership position in China’s international express and logistics market.

The DHL-Sinotrans Headquarters, with a total floor area of over 40,000 square meters, is located at the Beijing Economic-Technological Development Area, which is home to many international MNCs. When it is completed in 2007, its state-of-the-art facilities will boost DHL-Sinotrans’ already unrivalled capability and capacity for both air and ground operations in China. The nine-storey building will incorporate the Country Training Center with 37 classrooms equipped with the latest training facilities; a Call Center covering an area of nearly 5,000 square metres, and furnished with 1,000 seats by 2019; a 260-square-metre Information Technology Center; and an Express Logistics Center and an Operations Center, with a total area of 5,400 square metres. It will also house the 300-square-metre China Quality Control Centre, which enables the proactive monitoring and control of shipment movements in the country.

Mr. Hsu noted, “DHL has been ramping up its investments in China and our US$900 million investment program, including the construction of the DHL-Sinotrans Headquarters, underscores our strong commitment to China. With the inauguration of the building, this leading express operations center will enhance DHL-Sinotrans’ position as an important part of DHL’s Asia Pacific and global network. ”

As China’s market leader, DHL-Sinotrans boasts the most extensive network with an impressive air express service network and branches in major cities across the country. DHL-Sinotrans’ air operations include utilizing over 500 flexible commercial flights every week, as well as 4 existing DHL dedicated direct flights. The seamless connections between DHL’s Asia Air network and global network enable it to further promote trade exchanges between China’s regional markets and the global market.

DHL was the first international express company to enter the Chinese market in 1980 and made a major commitment to the country in 1986 with the founding of DHL-Sinotrans. Since the opening of the Chinese logistics market in 2005, DHL has been making great strides in improving its network and services. With the upcoming string of DHL initiatives on its 20th anniversary, 2006 offers plenty of reasons for the market to harbour high hopes and expectations.