MANILA, Philippines - Logistics company Deutsche Post DHL is investing $25 million in the next two years in the Philippines to expand its warehouse facilities as it expects greater demand for its services here.
DHL chairman of the board of management and chief executive officer Frank Appel said in a press conference yesterday the firm, which intends to expand its business in the country, is investing $25 million in the next two years.
“We see Philippines as a very promising market for many industries but consequentially for ours because we are helping many businesses,†he said.
Part of the investment, DHL Global Forwarding Phils. Inc. managing director Stephen Ly said would be for a new office in Clark in Pampanga.
DHL Supply Chain Phils. Inc. country managing director Suzie Mitchell said the investment would also be used for warehousing infrastructure in the country.
“We don’t have locations specified but we will probably be investing in Central Luzon region. We are also looking at expanding outside (Luzon), down in the southern part of the Philippines,†she said.
She said the firm chooses locations based on where their customers are.
Appel said the firm is investing in warehousing facilities as it expects demand for such to increase here, as well as in other parts of the region.
“Customers are constantly looking for that,†he said.
“We are confident we will see continuous demand for warehousing in the region. The ASEAN (Association of Southeast Asian Nations) Free Trade Agreement will help it further and the TPP (Trans-Pacific Partnership Agreement),†he added.
The TPP which aims to lay the foundation for a modern, high-standards free trade area of the Asia-Pacific region, currently has 12 negotiating countries including four in the ASEAN such as Brunei, Malaysia, Singapore, and Vietnam.
The investment to be made is also seen to create more employment in the country.
Currently, DHL has 3,000 employees in the Philippines.