With over 200 specialists DHL expands its Oil & Energy Center of Excellence in Singapore to serve the Asian Market

DHL, the world’s leading logistics company, today unveiled its global strategy to bolster its service offerings and infrastructure for the €260 billion global Oil and Energy logistics industry. The company also launched a dedicated Oil and Energy Center of Excellence (COE) in Singapore to serve the Asia Pacific region, as DHL expands its global network of Oil and Energy Expertise centers to capitalize on market demand.

Staffed by more than 200 employees, the DHL Asia Pacific Oil and Energy Center of Excellence (COE) located in Changi South marks the eighth and largest DHL Center of Excellence for Oil and Energy. The center comprises of a comprehensive team of industry professionals who design and implement innovative and enhanced logistics solutions for Oil and Energy companies.

DHL’s focus on the Oil and Energy sector – spanning both fossil and renewable energies – is timely as the industry currently spends about €260 billion on logistics globally. World energy demand by 2030 is expected to grow 74% from 2005 levels, of which China alone is expected to account for 30% of that growth. The industry is expected to attract an average of €600 billion a year in investments to reach €15 trillion in cumulated investments in the energy sector by 2030.

“The growing global demand for energy, and the exploration of alternative energy sources, presents key opportunities for logistics companies. In the wind energy sector for example, the growing size and width of wind turbines present new logistics challenges. Transportation can add some 10-25% to the cost of a turbine, as the parts may exceed capacity of regular transport modes. As the world’s leading logistics company, DHL is well-positioned to develop new approaches and set new benchmarks in the industry,” said Hermann Ude, CEO, DHL Global Forwarding, Freight.

Led by Sam Ang, CEO, Southeast Asia, DHL Global Forwarding, the DHL Asia Pacific Oil and Energy Center of Excellence is interlinked with a network of regional centers around the world. DHL runs seven similar centers across the US, Europe, Middle East and Africa to support the growth of multiple business divisions servicing the world’s energy suppliers.

“With a strong presence in all key sourcing territories, DHL is well-equipped to provide Oil and Energy companies with integrated supply chain services including bulk transportation, heavy lift and customs clearance,” said Amadou Diallo, Chief Executive Officer, DHL Global Forwarding South Asia Pacific.

The oil and energy industry poses numerous logistics challenges. These include a broad diversity of cargo that differs in dimension, weight and type of commodity; a complex customs environment; remote locations for most manufacturing sites; compliance to high quality, health, safety and environment standards; and a high cost impact in the event of delays in the supply chain.

“Expansion in alternative energy sources – wind, solar and geothermal – also present opportunities for growth, particularly in Asia. Today, China has the fourth-largest installed base of wind power in the world, and by 2015, it will be the world’s largest. The region has a strong track record of supporting exploration and investment in alternative energy to satisfy growing demand, support domestic industry and preserve the environment,” said Hans Toggweiler, Global Head of Oil & Energy for DHL Global Forwarding.