DHL Global plans to expand business in Pakistan
"There is nothing happening in Pakistan that we have not seen elsewhere"
Thursday, May 06, 2010
By Saad Hasan
KARACHI: DHL Global Forwarding, WorldÃs largest logistics group, plans to expand operations in Pakistan and spend $9 million in warehouses, its trucking fleet and train human resource.
"You have 176,000km of paved streets. Go to India or any African country and tell me if they have so much of paved roads," Amadou Diallo, the Chief Executive Officer of DHL Global Forwarding business in South Asia Pacific and Angola, told The News in an interview.
The size of the investment is not much, but it shows the confidence of DHL Global in Pakistan, which is struggling to revive its battered economy.
"Every crisis offers opportunities," said Diallo. "Most of the economies in the region, including Pakistan remained resilient to the recession."
DHL Global, which is part of GermanyÃs Deutsche Group, sees growing business opportunities in the entire region.
"In the next 30 years, almost 40 per cent of the global trade will be taking place in Asia, Africa and Latin America," Diallo said. "That means at least 50 per cent of the fortune 500 companies will be from Asia."
"Pakistan is producing half a million graduates every year. All these brains will be generating a lot of ideas and in turn a lot of growth. They will want designer clothes and apparels," he said.
DHL has been operating in Pakistan for the last 27 years and employs around 1,000 people. Over 50 per cent of its ocean trade revenue comes from Asian countries.
Diallo said investments in telecommunication and infrastructure sectors in Pakistan are playing a key role in the development of small and medium enterprises.
"Logistics companies such as DHL can help them get their products in various markets," he said. "A lot of people know about Europe and the United States. But not many know that there is a rising middle class in Angola, Kenya, in chunks of South Africa and Sudan. We can help you get there."
The freight forwarding companies provide not just transportation services, but give logistics solution, he said. "Businessmen can organise marketing through Internet. The logistics companies can ship goods even to Guatemala without their having to know the geography of that country."
Most importantly, he said, companies such as DHL help exporters guide through customs procedures in different countries. "Now that is not something that you learn in any university."
The deteriorating security situation in Pakistan is not something that deters DHL. "We operate in 222 countries around the world. There is nothing happening in Pakistan that we have not seen elsewhere." He said Pakistan can gain from exporting agricultural products to around 1.2 billion Muslim consumers. "There is a need for investment in agriculture. But for the private sector to develop you need a lot of people who are willing to take risk."