DHL to build in-country warehouse

Sum Manet / Khmer Times No Comments Share:
DHL set to build warehouse in Cambodia. Wiki Commons CC BY-SA

DHL Supply Chain, a division of Deutsche Post DHL and affiliated with DHL Express, is set to build a warehouse in Cambodia.

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The company, according to the Bangkok Post yesterday, will invest 2.7 billion baht (about $80.9 million) over the next three years to expand its presence in the Greater Mekong Subregion.

The investment will be made in Thailand, Vietnam, Cambodia and Myanmar where DHL Supply Chain wants to tap the growing demand for logistics, said the newspaper.

“The investment will go towards building new warehouse facilities, expanding its fleet of trucks, and introducing new technology,” the report added.

“The company will next concentrate on building a presence in Cambodia with a 20,000-square metre warehouse manned by 500 employees.”

DHL Supply Chain’s investment in Thailand, Vietnam, Cambodia and Myanmar is expected to increase warehouse space in those countries to 1.44 million square metres, said Kevin Burrell, chief executive of DHL Supply Chain for the Thailand cluster, which includes GMS countries.

“By 2020, we hope to create 7,000 more jobs to make it a total of 17,000,” said Mr Burrell.

Khat Sovann, the general manager of Cam Top Property Group, said warehouse demand so far this year had experienced steady growth because most of the tenants had contracts with the warehouse owners for three- to five-year periods.

“The reason that warehouse demand remained unchanged is that new investors are waiting to see how the current economic and political situation evolves in the country,” said Mr Sovann.

While the logistics sector in Cambodia has shown some recent improvement thanks to physical infrastructure being built or restored, the Global Comparativeness Report 2014 gave Cambodia an overall infrastructure ranking of 104, significantly lower than those of Vietnam or Thailand.

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