Keeping things moving The importance of logistics to world commerce can hardly be over-estimated, even if it is not an


aspect of business and trade that is studied by all. The amount of money that is being invested in the sector gives some idea, however, as does the revenue that can be earned from related activities


F


ollowing DHL’s recent opening of a new US$175 mil- lion North Asia Hub at Shanghai Pudong International airport (ACW, 16 July, p3), the express services giant last week opened the doors to a new MegaHub facility in Hong Kong.


lion) and taking in warehouse space of almost 900,000ft2 (83,613m2


Requiring an investment of HK$630 million (US$81.2 mil- ), the building is located at Interlink in Tsing Yi, close


to Hong Kong International airport and the city’s Central Busi- ness District. The facility boasts ramp access doors for both outbound and


inbound cargo, temperature-control technology and secure cages. It also offers the latest security measures, DHL pointed out. “Asia continues to be one of the most active and dynamic


regions in the world economy, with its rapid growth demanding an ever-developing network to keep pace with its needs,” notes Frank Appel, CEO Deutsche Post DHL. He added that the new MegaHub would “better serve” this booming market. “Our global supply chain business is developing strongly, also


driven by continued growth in the Asia Pacific region,” observed Bruce Edwards, global CEO of DHL Supply Chain. “The development of our people, an accelerated collaboration


between countries and divisions and our ongoing infrastructure investments will further spur this growth agenda,” he went on. “With this new MegaHub we will expand our organisational


capabilities, providing an even better service to our customers in Hong Kong and beyond by meeting their needs for comprehen- sive solutions from a single source,” Edwards commented. Its new Hong Kong headquarters represents only the latest


investment that the integrator has chosen to make in its Far East operations. The North Asia Hub that was unveiled earlier this month covers a land area of 88,000m2


and can process up to


20,000 documents and 20,000 parcels an hour. DHL’s four hubs in Asia Pacific – at Shanghai, Hong Kong,


Bangkok and Singapore – link to more than 70 DHL Express Gateways across the region. As well as the DHL infrastructure in the Far East, the network


that supplies and connects it is also going to receive further investment. The express services provider already links 40 coun- tries and territories through a fleet of over 40 aircraft, while the company operates about 690 commercial flights each day in Asia Pacific. However, in recently announced plans, DHL confirmed that it expects to increase the dedicated capacity of its Asia Air Network by deploying eight freighters on routes between Shang- hai and North Asia, Europe and the US. These all-cargo aircraft will be operated by partner airlines or


by carriers in which DHL has a share: Polar, AeroLogic and DHL Air UK. As well as building on the existing connections it offers out of Shanghai, DHL will also be adding a new link to East Midlands in the UK, while new direct routes to cities in China, Taiwan and South Korea are also set to be launched. Jerry Hsu, CEO of DHL Express Asia Pacific, noted that the


company’s upcoming planned flight investments follow on from “continuous enhancement” made to DHL’s Asia Air Network in the past.


Schenker application denied


In November 2010, the EU Commission fined 11 cargo carriers a total of 800 million euros (US$975.3 million) for operating a worldwide cartel for price fixing within the European Economic area. The fine was in relation to illegal, anti-competitive contracts


between the carriers with regards to the fixing of fuel sur- charges, the creation of a security surcharge, and the refusal to pay a commission on surcharges to the airlines’ clients, between 1999 and 2006. Many of the carriers indicted have appealed against the car-


tel fines that the EU Commission’s ruling brought against them. In response to this, freight forwarder Schenker applied to the EU’s highest court – the European Court of Justice (ECJ) – for an intervention into the air cargo cartel’s appeals, on the basis that the cartel’s illegal behaviour was detrimental to Schenker’s for- warding business. Moreover, the logistics giant argued that its right to inter-


vene should be granted in order to prevent the reformation the cartel in the future. But, on 10 July, the ECJ rejected Schenker’s intervention


application, stating that the fact that a company is a customer of airlines participating in a cartel is not sufficient to establish a right to intervene. The court argued that the higher prices the cartel would


have brought about for Schenker did not distinguish it signifi- cantly from other entities in the sector that would have been impacted by the cartel’s activities. The ECJ added that there are no indications that the cartel


has not already been dissolved, and thus Schenker has no right to intervene on the grounds that it wishes to ensure the end of the anti-competitive behaviour.


Page 10 23 July 2012


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