Logistics firm infuses additional investments in PH operations

Logistics firm Deutsche Post DHL is investing $25 million in its operations in the Philippines to further expand its supply chain business and warehousing facilities.

DHL chief executive officer Frank Appel made the announcement on Wednesday, noting that the additional capital earmarked for the country over the next two years would be used to “enlarge our footprint” in a promising market like the Philippines, which had seen healthy growth over the past year.

The amount will be used specifically for the company’s Express and Supply Chain units in the Philippines, and for additional warehousing facilities that may be set up in Central Luzon and Mindanao, Appel said in a briefing.

Although he did not disclose the specific sites for the proposed facilities, he said the company was considering Central Luzon and Mindanao because of the growth prospects in these areas.

Appel further said the company decided to infuse the additional investments in the Philippines as the country had become an important market for many industries. This means the country will need high-quality logistics services to cater to the expected increase in demand from these industries.

Suzie Mitchell, country managing director for DHL Supply Chain Phils. Inc., noted that the company had been upbeat on the Philippines because many of its customers, which were multinational companies, had been coming in here to invest.

“Not only do we believe in the potential of the Philippines, but many other companies believe in the same thing, so they are here to invest as well,” she added.

Appel further noted that beefing up DHL’s warehousing facilities meant a long-term commitment of the company, which had been operating in the Philippines for the past 46 years. The additional investment is also expected to generate new job opportunities for Filipinos.

The company’s plan to infuse additional investments in the country was not affected by a recent decision of the Court of Appeals, barring another foreign logistics firm, Federal Express, from operating in the Philippines.

This was despite the fact that FedEx is holding a five-year permit to operate in the country granted by the Civil Aeronautics Board (CAB) in May 2011. The CAB permit was backed by a Department of Justice opinion issued in 2004 stating that “international air freight forwarders are not covered by the nationality requirement under the 1987 Constitution, hence, may be issued a certificate of public convenience subject to the CAB’s pertinent rules and regulations set forth under Republic Act No. 776 and other existing laws,” the Inquirer reported last month.

FedEx is still appealing the decision before the appellate court.

Appel noted that since there was no final decision yet on the matter, the company would continue with its business in the Philippines.