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DHL's decision on North Asia hub due soon
POSTED: 9:59 a.m. EDT, February 22,2007

The CEO of DPWN, Klaus Zumwinkel, has been touring North Asia this week and outlining his company's investment plans for the region. Reports from Japan indicate that Klaus Zumwinkel has stated that DHL will invest Y1.1bn ($100m/€66m) at its facilities in Kansai International Airport in Osaka and Central Japan International Airport near Nagoya. This is in addition to the already announced decision to establish a distribution hub in Ichikawa near Tokyo for the DHL Express business.

Zumwinkel has also been elaborating on his investment strategy in China and Korea. He announced this week the intention to increase investment at Incheon International Airport near Seoul. However he was equivocal about the role that Incheon will play in DHL's strategy in the region. Although he acknowledged that the Korean government wants Incheon to be a key air cargo hub for North Asia he carefully avoided giving a commitment to making the airport DHL's hub of the region.

The reason for avoiding this commitment was apparent when Mr Zumwinkel flew to China. In discussing the investment plans DHL has in the country, he stated that DHL was not sure whether to make Incheon its North Asia hub or to develop its location at Shanghai Pudong International Airport.

Mr Zumwinkel and Scott Price, CEO of DHL Express Asia-Pacific, admitted that it was "close race" between the two, but that the decision would be made by the "second quarter of this year". The two managers said that the decision would be made on ground of quality of operations, customs efficiency, availability of bonded warehousing as well as construction costs.

It is assumed that the US$100m investment in China that Mr Zumwinkel also announced this week refers to the previously announcement made earlier in the month, rather than being new monies.

From:TI
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