DHL invests US$10 million in Bangladesh to strengthen logistics capabilities
- DHL Global Forwarding Bangladesh offers full suite of logistics and innovative customized solutions
- Launches "DHL Fashion & Apparel Center of Excellence" in Dhaka to leverage US$3.9 billion fashion logistics services sector
DHL operates more than 70,000 square feet warehouse space to ensure timely cargo transfer.
DHL today announced its new joint venture (JV) in Bangladesh and that it will invest US$10 million over the next few years to enhance its logistics capabilities in the country. The global logistics leader signed an agreement with its long-standing partner, Trade Clippers Cargo Limited, to form the new entity, DHL Global Forwarding Bangladesh.
As part of this investment, DHL also launched the "DHL Fashion and Apparel Center of Excellence" in Dhaka to capitalize 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.
Amadou Diallo, CEO, DHL Global Forwarding, South Asia Pacific, said, "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. Bangladesh, India, Pakistan and Sri Lanka alone are estimated to account for well over US$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% of all exports from the country1. Coupled with the global economic rebound, we are very optimistic of sustained growth as consumer demand in the fashion and apparel sector regains."
New Fashion and Apparel Center of Excellence
"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. "The new joint venture signals our commitment to the region and complements our existing network in the Indian sub-continent and globally to address the growing market opportunities. 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 center will be DHL’s fourth Fashion and Apparel Center of Excellence in South Asia, following the establishment of similar centers in India, Sri Lanka and Pakistan. The “DHL Fashion & Apparel Center of Excellence” comprises of a core team of industry experts and be responsible for developing tailored solutions and provide consultancy services to customers.
"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. "By integrating global forwarding expertise and supply chain capabilities, we offer customers greater access to streamlined solutions that help them optimize their supply chains. Having established ourselves in Bangladesh for over 25 years, we have the local expertise and knowledge and the flexibility to tap into our global network and capabilities in more than 220 countries and territories."
Tailored solutions for the fashion industry
Besides offering airfreight and ocean freight services, the new joint venture provides customs clearance and other value added services. Employing over 250 employees, the new entity offers warehousing and distribution for air and ocean cargo and operates more than 70,000 square feet warehouse space, some of which is located in close proximity to the airport to ensure timely cargo transfer.
DHL's global warehouse management system is also introduced in the new joint venture. The global IT platform will enhance the availability of information and service efficiency for customers.
As the global logistics leader, DHL's services cover the entire logistics value chain of the fashion industry - from material purchasing to the sampling business, to quality control of production and direct delivery to the boutiques of international fashion companies. DHL's end-to-end solutions include manufacturing and supplier services, origin management, freight management, destination management and in-country logistics. In addition, DHL offers sector-specific solutions to cater to customers' tailored needs.
Some solutions for the fashion and apparel sector include:
- Textainers - a system of transporting hanging garments which protects garment in transit.
- Door to More - an integrated solution that consolidates multiple orders from distribution centers/manufacturers at origin for international transportation and customs clearance. At destination, shipment is then broken into deliveries to individual consumers or stores.
- Value added services such as labeling, quality assurance and control, re-packing, reverse flow of returns, single and set bagging and security tagging.
- Economic Intelligence Unit
- Business Monitor International Ltd - Bangladesh Textiles & Clothing Report Q3 2009
- Mustaque Ahmed (Managing Director DHL Global Forwarding Bangladesh), Amadou Diallo CEO, South Asia Pacific DHL Global Forwarding), Thomas Tieber (CEO, South Asia, DHL Global Forwarding)