JG Summit, DHL form logistics partnership

MANILA, Philippines — Gokongwei-owned JG Summit Holdings Inc. and logistics giant DHL have formed a joint venture to support transport and distribution needs in the country.

The two companies formed DHL Summit Solutions Inc., which combines JG Summit’s market knowledge and DHL Supply Chain’s specialized logistics expertise.

The initial focus will be the domestic market as DHL Summit hopes to take advantage of the country’s booming economy, said JG Summit president and CEO Lance Gokongwei.

“The Philippine economy is expected to grow six percent year-on-year and businesses will need to invest in world-class logistics and warehousing services to stay ahead of the competition,” Gokongwei said.

“Working with DHL is the ideal move for us, as we leverage their global footprint and tap onto their expert knowledge to provide integrated industry-leading services,” Gokongwei said.

DHL Supply Chain chief executive officer for Asia Pacific Terry Ryan said the company expects greater investment by the government in logistics and industrial parks.

“Our global network and local expertise puts us in good stead as the most reliable logistics partner they need, to fully capitalize on the market opportunities,” Ryan said.

As one of the most dynamic economies in East Asia, the Philippine economy is projected to grow exponentially, supported by the government’s development plan for the period 2017-2022 which is aimed at accelerating infrastructure programs and projects especially for the healthcare, telecommunication, electronics and retail sectors. 

The logistics industry is a rapidly growing sector in the Philippines with many conglomerates making its foray in the business.

DHL, which is part of Deutsche Post DHL Group, is a global brand in the logistics industry with about 380,000 employees in more than 220 countries and territories worldwide.

It has specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing market.

JG Summit, on the other hand, is one of the largest and most diversified Filipino conglomerates in the country. It is engaged in different businesses such as snack foods and beverages, commodities, agro-industrial businesses, air transportation, banking, real estate and petrochemicals.