DHL invests US$15 million in logistics infrastructure for fast growing Life Science industry in Asia
- Global logistics leader launches Life Science Competence Centers in Singapore, Mumbai and Hyderabad
- Sets up Aid & Relief Logistics unit
DHL is investing US$15 million in three Life Science Competence Centers to fulfill growing demand for higher levels of quality compliance.
Strategically located in Singapore, Mumbai, and Hyderabad, the centers will bolster DHL's logistics capabilities for the Life Science industry in the region.
The company also announced the launch of the DHL Global Forwarding Aid & Relief Logistics unit in Asia Pacific based in Singapore. Drawing on DHL's expertise in Life Sciences, DHL Global Forwarding Aid and Relief Logistics focuses on logistics solutions for Humanitarian organizations dealing with sensitive and life critical shipments involved in aid and relief efforts.
"Asia and other emerging markets are a key sourcing, manufacturing and distribution base for the global pharmaceutical industry. Increasingly, they will also be key markets for consumption. Investing in dedicated Life Science Competence Centers enhances our global network as we deliver health for the region and the world," said Frank Appel, CEO, Deutsche Post DHL.
In 2009, the global pharmaceuticals sector, a key segment of the Life Science industry, is estimated to be worth US$820 billion, with an expected growth rate of 14 -15%1 in emerging markets2.
DHL Life Science Competence Centers in Asia
The DHL Life Science Competence Centers in Asia will comprise a core team of industry professionals who will develop solutions for customers to better manage their international supply chains. Currently, DHL has a network of 16 Competence Centers across the globe3. With the launch of three centers in Asia, DHL will operate 19 Life Science Competence Centers, all of which have been strategically located to ensure proximity and accessibility to customers.
India - As the world's second most populous country, domestic demand for drug consumption in India is expected to grow at a CAGR of more than 13% to reach US$11.2 billion by 20124. Having established itself as a preferred destination for outsourced drug discovery, clinical research and manufacturing functions, India's pharmaceutical production is projected to grow at a CAGR of over 40%, valued at US$2.5 billion by 20105.
The Life Science industry in India has seen new and stricter regulatory requirements for quality compliance. DHL's Life Science Competence Centers fill the gap in the existing supply chain, by providing improved temperature controlled handling and storage, greater product transparency and visibility, and complete end-to-end logistics capabilities.
Singapore - Many leading healthcare companies have set up their regional headquarters and distribution centers in Singapore. Pharmaceutical exports are expected to grow to US$5,951 million by 20136. With its strong research base, Singapore is a manufacturing point for high-value pharmaceutical and bio-tech products. It is also a key transportation hub receiving pharmaceutical products inbound from major manufacturing sources, and providing storage and onward distribution service to Asia, the US and Europe.
The DHL Life Science Competence Center will support the local government's goal of having at least 10 multi-national production facilities in operation by 2010. The city state's proximity to the major shipping lanes of Asia, and a high volume regional airline hub makes the country an ideal site as a life science hub.
The launch of the Life Science Competence Centres in Singapore augments DHL's on-going innovations in the industry. In Singapore, DHL Express offers Temperature Controlled Logistics (TCL) door-to-door service which provides customers best-in-class network, quick transit time, track and trace, specialized handling and packaging solutions that maintain temperature of 2°C to -20° C.
DHL Aid & Relief Logistics services
With its core expertise in Life Sciences, DHL Global Forwarding's Aid and Relief Logistics unit is established especially for Humanitarian and Development organizations. These organization deal with sensitive and life critical shipments involved in aid and relief efforts. The Aid & Relief Logistics unit will manage the movement of aid cargo in humanitarian efforts around the world and develop tailored solutions to provide critical round-the-clock support for the sector.
A significant amount of pharmaceuticals and other aid and relief supplies are procured from India. In 2008, the United Nations procured US$620 million of pharmaceuticals, medical equipment, cold chain equipment and diagnostic test kits from India7.
"With our experience in the Life Science sector and disaster management, the Aid & Relief Logistics unit will help organizations in the Aid, Humanitarian and Development sector manage their cargo fast and efficiently to deliver to people most in need," said Amadou Diallo, Chief Executive Officer, DHL Global Forwarding South Asia Pacific.
- IMS Health, Market Prognosis, September 2008
- These emerging markets include Brazil, China, India, Mexico, Russia, South Korea and Turkey
- The existing Life Science Competence Centers are located in Atlanta, Basel, Brussels, Cairo, Dubai, London, Madrid, Melbourne, Mexico, Milan, Panama, Paris, Philadelphia, San Juan, Shanghai and Sydney
- CRISIL Research, August 2007
- Cygnus Industry Insight, March 2008
- Business Monitor International LTD
- Annual Statistical Report on United Nations Procurement 2008