Global contract logistics solutions provider DHL Supply Chain has formed a joint venture agreement with local conglomerate JG Summit Holdings Inc to provide transport and distribution solutions for Philippine-based and international businesses in the country, according to news site BusinessReporter.ph.
JG Summit said the joint venture company – DHL Summit Solutions Inc – will leverage the strengths of both parties to enhance domestic transportation operations to improve safety, compliance, and customer experience in the Philippines.
The parties involved have agreed to invest approximately P60 million in the joint venture, which is expected to start commercial operations in June 2020.
“The Philippines economy is expected to grow by 6 per cent year-on-year and businesses will need to invest in world-class logistics and warehousing services to stay ahead of the competition,” said Lance Gokongwei, President and CEO of JG Summit Holdings, Inc. “
He added that the JV is committed to help homegrown and international companies in the Philippines achieve their next phase of growth.
“Working with DHL is the ideal move for us, as we leverage their global footprint and tap onto their expert knowledge to provide integrated industry-leading services.” Terry Ryan, CEO, DHL Supply Chain, Asia Pacific said.
“We are seeing greater investment by the government on enhancing infrastructures such as setting up integrated logistics and industrial parks, and customers can count on our expertise in this aspect to serve their needs. Our global network and local expertise put us in good stead as the most reliable logistics partner they need, to fully capitalize on the market opportunities,” Ryan added.
As one of the most dynamic economies in East Asia, the Filipino economy is projected to grow exponentially, supported by the government’s Development Plan for the period 2017-2022 which is aimed at accelerating infrastructure programs and projects especially for the healthcare, telecommunication, electronics, and retail sectors. – BusinessNewsAsia.com