DHL invests in Bangladesh

LOGISTICS    APPAREL

Asia - DHL said its US$10 million investment in Bangladesh will go toward strengthening its logistic capabilities there.

The logistic company has signed an agreement with its long-standing partner, Trade Clippers Cargo Limited to form new entity, DHL Global Forwarding Bangladesh.

It also launched the "DHL Fashion and Apparel Centre of Excellence" in Dhaka as part of the investment to capitalise on the Fashion Logistics industry in South Asia, where the total spend on logistics services is estimated to be worth US$3.9 billion per annum.

According to the Economic Intelligence Unit, the fashion and apparel sector is one of the country's largest foreign currency earners and a key employer in Bangladesh, with ready made garments accounting for about 70% of all exports from the country.

Bangladesh, India, Pakistan and Sri Lanka alone are estimated to account for well over US$2.4 billion in this fast-growing industry.

"The growth of the Bangladeshi textiles and clothing manufacturing sector in 2009 was estimated at 5.7%, with a forecasted growth of 6.4% in 2010 and we are confident of strengthening our leadership position in Bangladesh and the region," said Thomas Tieber, CEO, DHL Global Forwarding, South Asia.

While DHL's immediate focus is to serve the fashion and apparel manufacturing base, they will leverage their network capabilities to support infrastructure projects in Bangladesh as well as fulfill the logistics needs of the growing life science and aid and relief sectors, added Tieber.

"The investment in Bangladesh will go towards strengthening the joint venture, employee training, upgrading of information systems, enhancing and expanding the infrastructure and introducing a range of new services for businesses in Bangladesh," said Mustaque Ahmed, Managing Director, DHL Global Forwarding Bangladesh.

It will be DHL's fourth Fashion and Apparel Centre of Excellence in South Asia following the establishment of similar centres in India, Sri Lanka and Pakistan.

Besides offering airfreight and ocean freight services, the new JV will provide customs clearance and other value added services such as warehousing and distribution from their more than 70,000 square feet warehouse space.

DHL's global warehouse management system will also be introduced in the JV to enhance the availability of information and service efficiency for customers, DHL said.

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