Hong Kong


	The Japan Times WORLD EYE REPORTS HONG KONG

©THE JAPAN TIMES	Wednesday, June 26, 2002

Asia's early bird: a look back

Hong Kong has long served as the Asian base for one of the world's leading air transport companies. In this huge region, whose combined growth continues to outpace the traditional developed economies of the West, DHL's CEO for Asia-Pacific looks back on more than nine productive years of leading his company through some turbulent moments and derives satisfaction in finding it ready for even more changes ahead.

In a world where time means money, people are constantly on the move, and the speed of the Internet dictates efficiency, the air express industry is becoming increasingly important. These days not only do express operators have to transport goods from A to B in the shortest time possible. They also have to supply integrated logistics solutions tailored to their customers needs. This translates into air express companies getting more directly involved with the operations of their clients.

Charles Longley, CEO of DHL Worldwide Express Asia Pacific and Middle East

They supply assistance to manufacturers in assembling, packing, and delivering products to end users, as well as acting as swap or replacement centers. With the world market already demanding that they provide a full range of services in order to survive, the leading companies in the sector know what they need to do to prosper. DHL Worldwide Express provides the best answer.

Founded in 1969, the DHL Corporation began as an exclusive solutions provider for a single shipping company that was having trouble meeting urgent deadlines in shipments between California and Hawaii. Today, the DHL network links 120,000 destinations in over 220 countries and is a global market leader within the multibillion-dollar industry.

The headquarters for DHL's Asia Pacific sector and the hub for the Asian air network are both centrally located in Hong Kong. According to Charles Longley, CEO of DHL Worldwide Express Asia Pacific and Middle East, his company leads the field in the Asian market.

"The industry is still relatively new and is still evolving day by day," he says. "This year both revenue and profit showed double digit growth. In the Asia Pacific, DHL has invested heavily in technology. We have new facilities in almost every country. And these facilities are more automated than they have ever been. So we are able to streamline the handling of our products."

To simply say that the company is a success in Asia would be a clear understatement. Not only does DHL perform well financially every year, it also continues to set records within the industry. For example, it is the only company that has won the Asian Freight Industry's (AFIA) award for "Best Express Service" for 15 consecutive years. As of 2001, DHL also ranked highest within its sector, garnering the number 14 position in Asian Business" "Asia's Most Admired Companies" survey.

It is also impossible to overlook the huge business potential that Hong Kong alone offers. The local express industry is growing at a rate of about 25 percent per year, characterized by the escalating need for quick response delivery for importers and exporters.

In addition, China's entry into the WTO (World Trade Organization), provides unparalleled opportunities for companies like DHL. And, it would not hurt that DHL was also the very first air express operator present in the Chinese market back in 1986.

Asked about DHL's current strategy within China, Longley replies, "We've been very successful, and our 35 percent annual growth is just outstanding. DHL is continually opening more offices dotted across the country. We are doing this in cooperation with Sino-Trans through a joint venture. We are investing heavily in China and its gateways, and we are constantly looking to improve our ability to move material into all the commercial centers within China. This requires people, infrastructure, and advanced communications, both in aviation and on the ground."

In preparation for the increased trade traffic China will bring to Hong Kong, DHL has planned ahead. In June 2001, the company opened the largest Central Service Center of its kind, located in Cheung Sha Wan, Hong Kong, thereby increasing its shipment handling capacity by 40 percent.

Six months later, DHL expanded its Express Logistics Center in Tsuen Wan, Hong Kong, simultaneously arming it with a brand new state-of-the-art inventory management system. These advancements will not only solidify the current express shipping needs of the Asia Pacific region, but also set up the infrastructure needed for the expected growth ahead.

Although nobody can be certain of what lies ahead for the Asian region, DHL is well prepared as Longley has set up devices that are needed to confront whatever challenges come in the future. "The first challenge was to tame a difficult market," he explains. "Other parts of the world are more developed, which means there is more competition and everybody is aware of the different niches within the market."

"Out here in Asia, you just have to have a very fundamental business plan. It is very important to be the first, especially in the service sector. Our role is to facilitate express bases for getting manufactured goods closer to the markets where they are consumed. So we just have to ensure that we have the physical infrastructure in each country to service that need," he adds.

It is evident that Longley has already accomplished what he initially set out to do. Retiring in 2002 after nine years of heading the Asian Headquarters, he can surely take pride in DHL's several accomplishments during his tenure. In a business where time is of the essence, Charles Longley is clearly making full use of his days.

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