DHL Global Forwarding, a leading provider of air, sea, and road freight services in Europe and Asia, has established a comprehensive road freight network connecting five major Asian cities: Singapore, Penang, Bangkok, Hanoi, and Shenzhen. This strategic move capitalizes on the rapid expansion of road freight in the Asia Pacific region, projected to grow at a rate of 8.3% annually between 2014 and 2019, reaching an estimated value of US$822 billion by 2019.

Source: DHL.

Operating under DHL AsiaConnect’s Less-than-Truckload (LTL) service, this interconnected five-city network offers a seamless delivery service that enhances time and cost efficiency while maintaining consistent service quality across all destinations. Launched in 2011, DHL AsiaConnect initially connected Singapore, Malaysia, and Thailand and has now expanded to integrate with the existing Vietnam-China route.

Road freight presents a practical alternative to other modes of transportation, offering cost advantages over air freight and faster delivery compared to sea freight. For instance, transporting goods between Shenzhen and Bangkok via sea freight takes approximately 13 days, while road freight only requires five days. Although air freight offers a faster transit time of four days, it comes at a significantly higher cost. Daily departures are available from all five cities, with estimated transit times as follows:

Singapore to Penang: One day Bangkok to Hanoi: Three days Shenzhen to Hanoi: Two days Shenzhen to Bangkok: Five days Penang to Shenzhen: Six days

The implementation of this five-city interconnected road freight network coincides with China’s “One Belt, One Road” initiative, which aims to strengthen cross-border economic ties between Europe and Asia. The land-based Silk Road Economic Belt focuses on enhancing economic cooperation through infrastructure development and expanded trade routes, while the 21st Century Maritime Silk Road focuses on ASEAN, positioning DHL’s integrated network to capitalize on the growth opportunities presented by this initiative.

“DHL’s integrated road freight network connects five vital Asian markets - Singapore, Malaysia, Thailand, Vietnam, and China - all of which are expected to play significant roles in China’s One Belt, One Road initiative and other regional endeavors like the ASEAN Economic Community,” said Kelvin Leung, CEO of DHL Global Forwarding Asia Pacific.

“The combined GDP of all 10 ASEAN countries reached US$2.4 trillion in 2013, while China’s GDP alone was US$10.3 trillion in 2014. ASEAN’s global trade reached US$2.51 trillion in 2013, with China consistently ranked among the top five trade partners for ASEAN members. We are optimistic about the continued growth of intra-Asia trade and believe our road freight network is well-prepared to support the potential trade expansion resulting from these initiatives.”

DHL’s integrated road freight network, having already established connections between key Asian markets, is strategically positioned to benefit from upcoming economic initiatives promoting trade and integration. One such initiative is the ASEAN Economic Community (AEC), scheduled for establishment by the end of 2015, which aims to create a single market and production base within ASEAN, facilitated by bilateral trade agreements and aligned financial policies. The AEC blueprint prioritizes cross-border collaboration in key areas such as capacity building, enhanced infrastructure and communication connectivity, and the development of electronic transactions. The successful realization of the AEC is expected to foster a thriving ASEAN region characterized by the free flow of goods, services, investments, and skilled labor.

DHL’s multimodal network, encompassing air, rail, road, and sea transport, is well-equipped to support trade expansion across various regions. DHL’s road freight network utilizes GPS-equipped trucks to ensure real-time monitoring of customer goods for safety and tracking purposes, providing complete supply chain transparency. These vehicles are also equipped with anti-hijacking systems and maintain constant communication with DHL’s Command Center, which is prepared to respond immediately in case of emergencies.

1 http://www.marketresearch.com/MarketLine-v3883/Road-Freight-Asia-Pacific-8748345
2 NDRC, China
3 ASEAN key indicators
4 The World Bank
5 USCC
6 ASEAN