Australia’s crowded parcel delivery market has been repeatedly disrupted over the course of the 2015-16 season, with both local and international businesses pushing into what may be one of the last genuine growth segments in modern-day commercial road transport.
Handling more than 10 million shipments every year, DHL Express is a behemoth of the game and one of the most prominent parcel delivery businesses in the world.
Operating under the umbrella of the global DHL organisation, it is currently experiencing rapid growth in exports from Australian Small and Medium-sized Enterprises (SMEs), prompting it to invest heavily in local transport infrastructure.
Last year alone, the company opened a new $20 million Melbourne Gateway airport facility – effectively doubling the site’s capacity – as well as a new $1.8 million service centre in Canberra. In April, the company also expanded its Brisbane call centre and opened a new training facility, demonstrating just how serious the German-owned giant is about remaining at the forefront of parcel delivery in Australia.
Prime Mover spoke to Oceania CEO, Gary Edstein, to find out how the yellow and red powerhouse is positioning itself to stay relevant in post-election Australia.
Q: A lot has happened in the global transport and logistics market over the course of 2015-16, most recently the much-publicised union of TNT and FedEx. Does the global M&A boom post a threat to DHL Australia or do you consider it a ‘natural’ development in a globalised economy?
A: As the world’s leading logistics company, it is only natural that we are carefully monitoring the developments in our market – regardless of where they occur. With regards to a combination of FedEx and TNT Express, we actually see additional business opportunities arise from it: Experience shows that large-scale integrations will likely bring disruptions for our competitor’s customers, suppliers and staff, from which DHL can benefit. Instead of focusing on the actions of others, however, we prefer to concentrate on our business and offering the best possible service to customers. That’s also true for Australia.
The full story has appeared in the July edition of Prime Mover. To get your copy, click here.