DHL sets up company in Bangladesh
DHL said Wednesday it has established a new joint venture in Bangladesh in which it will invest $10 million over the next few years to enhance its logistics capabilities in the country.
DHL signed a deal with its longtime partner in Bangladesh, Trade Clippers Cargo Ltd. The new entity will be called DHL Global Forwarding Bangladesh.
The company also has opened a facility in Bangladesh's capital, Dhaka, to improve fashion logistics in the South Asian nation. DHL has set up similar centers in India, Sri Lanka and Pakistan.
'South Asia remains a key sourcing, manufacturing and distribution base for the global fashion industry and the region offers tremendous growth for the fashion logistics sector,' said Amadou Diallo, chief executive officer of DHL Global Forwarding, South Asia Pacific. 'Bangladesh, India, Pakistan and Sri Lanka alone are estimated to account for well over $2.4 billion in this fast-growing industry. 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 percent of all exports from the country. Coupled with the global economic rebound, we are very optimistic of sustained growth as consumer demand in the fashion and apparel sector regains.'
Thomas Tieber, CEO, DHL Global Forwarding, South Asia, said the Bangladeshi textiles and clothing-manufacturing sector grew 5.7 percent in 2009, with a forecasted growth of 6.4 percent in 2010.
'The new joint venture signals our commitment to the region and complements our existing network in the Indian Subcontinent and globally to address the growing market opportunities,' Tieber said. 'While our immediate focus is to serve the fashion and apparel manufacturing base, we will leverage our 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.'
The new joint venture will offer airfreight and ocean freight services, customs clearance and other value added services. The company will have more than 70,000 square feet of warehousing space.