DHL to invest $8 mn in Sri Lanka’s logistics sectorMarch 12th, 2009 - 9:32 pm ICT by IANS
Colombo, March 12 (IANS) Express and logistics major DHL Thursday announced that it will invest $8 million in Sri Lanka over three years to help the island nation become a logistics hub in South Asia.
Announcing a joint venture agreement with Capitol AEI Pvt Ltd, an exclusive agent for DHL Global Forwarding in Sri Lanka, the logistics company said the investments would “go towards the joint venture, employee training, upgrading of information systems and introducing an enhanced range of services for businesses” in the country.
“As part of this investment, by end-2009, DHL will launch the ‘DHL Fashion and Apparel Centre for Excellence’ in Colombo. The centre will comprise a core team of industry experts and be responsible for developing tailored solutions and provide consultancy services to customers,” the company said in a statement.
The fashion and apparel industry is one of Sri Lanka’s largest sources of national income and it contributes nearly 8 percent to the country’s gross domestic product and accounts for 45 percent of the export revenue and 67 percent of the total industrial exports.
“We are very optimistic about Sri Lanka’s growth potential. Being strategically located along the major air and sea routes between Europe and the Far East, Sri Lanka is uniquely positioned to capitalise on the increasing trade flows between South Asia and Europe,” said Amadou Diallo, DHL Global Forwarding chief executive for South Asia Pacific.
According to DHL, the fashion and apparel logistics industry in South Asia is estimated to be around $3.9 billion.
“India, Pakistan, Bangladesh and Sri Lanka alone are estimated to account for well over $2.4 billion in this fast-growing industry,” DHL said, adding that its services covered the entire logistics value chain of the fashion industry.
Tags: aei, amadou diallo, apparel industry, asia and europe, asia pacific, core team, export revenue, fashion industry, gross domestic product, india pakistan bangladesh, industrial exports, island nation, joint venture agreement, logistics company, s gross, sea routes, South Asia, tailored solutions, trade flows, value chain