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DHL invests US$15 million in logistics infrastructure for fast growing Life Science industry in Asia

Mumbai, 7 October 2009 – DHL, the world’s leading logistics company, is investing US$15 million (INR 72 crores) to strengthen its infrastructure to fulfill the growing demand for logistics services in the global Life Science industry. Towards this end, DHL Global Forwarding is also launching Life Science Competence Centers at strategic locations across Asia – Mumbai, Hyderabad and Singapore to bolster its international freight capabilities for the Life Science industry in the region. With a compounded annual growth rate (CAGR) of 9% per annum in airfreight and 12% in ocean freight, India is poised to be the fastest growing country in Asia for Life Sciences by 2014.

DHL Global Forwarding’s vast experience in the Life Sciences sector necessitates handling of sensitive cargo, which is often involved in aid and relief efforts. As an extension of this expertise, DHL Global Forwarding is setting up the regional Aid & Relief Logistics unit in Singapore to provide dedicated services to the international Aid, Humanitarian and Development Sector. This sector, which comprises the United Nations (UN) agencies, Governments and other organizations, spends approximately US$25 billion annually on logistics services globally. Currently, Asia Pacific is the second largest recipient of global humanitarian assistance, after Africa.

The Life Science industry is one of Deutsche Post DHL’s priority sectors and the network of Competence Centers will enable DHL to harness capabilities for its customers in this fast-growing industry. “We are making significant investments in Asia, the hub of the Life Science industry, to deliver health to the world”, said Frank Appel, CEO, Deutsche Post DHL. “Our global network of Competence Centers for this industry has seen a sharp increase in scale and complexity management, requiring us to provide reliable international and domestic logistics solutions”, he added.

In 2009, the global pharmaceuticals sector, a key segment of the Life Science industry, is estimated to be worth US$820 billion, with an expected growth rate of 14 -15% in emerging markets. As the world’s second most populous country, domestic demand for drug consumption in India is expected to grow at a CAGR of more than 13% to reach US$11.2 billion by 2012. Having established itself as a preferred destination for outsourced drug discovery, clinical research and manufacturing functions, India’s pharmaceutical production market is projected to grow at a CAGR of over 40%, valued at US$2.5 billion by 2010.

The emerging markets are a key sourcing, manufacturing and distribution base for the global pharmaceutical industry. India alone will account for approximately 9% of the airfreight volume out of Asia by 2014.

DHL Life Science Competence Centers in Asia

The DHL Life Science Competence Centers will comprise a core team of industry professionals who will develop customized solutions at origin and enable customers to better manage the product flow in their international supply chain. These Centers will fill the gap in the existent logistics supply chain, by providing improved temperature controlled handling and storage, greater transparency and DHL’s complete end-to-end logistics capabilities for viable Life Science solutions. With these services, DHL’s Life Science Competency Centers in Asia will not only improve the quality and compliance levels of this industry, but will result in cost efficiencies with increased speed to market and higher levels of product availability and product integrity.

Currently DHL Global Forwarding has a network of 16 Competence Centers across the globe. With the launch of three more centres in Asia, DHL Global Forwarding will operate 19 Life Science Competence Centers around the world, all of which have been strategically located to ensure proximity and accessibility to our customers and the end consumers.

As the global logistics leader, DHL has extensive experience and expertise in the Life Science industry and cold chain logistics. The company’s drive towards innovation and technological developments in temperature management ensure the safety and integrity of customers’ shipments throughout the supply chain.

Temperature Controlled Logistics offered by Blue Dart and DHL Express

There has been an increasing demand for temperature sensitive pharmaceutical cargo in the domestic and international markets. Express organizations like Blue Dart and DHL Express play a vital role in bridging the gap in this segment.

Blue Dart recently introduced a Temperature Controlled Logistics (TCL) door-to-door product which provides customers best-in-class network, quick transit time, track and trace, specialized handling and validated packaging solutions with temperature loggers. Responsive, efficient and flexible solutions include customized packaging with temperature offerings ranging from 2°C to -20° C.

DHL Express has developed bespoke solutions for Life Science projects and clinical trials while identifying the Life Science industry’s requirement for specialized solutions in the transportation of sensitive commodities which require time-definite temperature-controlled movement. With a dedicated life sciences team and specialized facilities, DHL Express has the operational expertise to provide customised solutions, IATA-validated packaging, temperature loggers and other value added services which ensure that these sensitive products are delivered under optimal conditions and are compliant with regulatory requirements. This service is offered in 103 countries across the DHL global network.

DHL Aid & Relief Logistics services

The Asia Pacific region is not only one of the major recipients of humanitarian aid, but is also the largest procurement base to non profit agencies, particularly the United Nations, with India leading the supplier statistics at US$620 million in 2008. Leveraging DHL’s international network and expertise in the delivering humanitarian assistance, the DHL Global Forwarding Aid & Relief Logistics unit has been established in Singapore to provide professional logistics services to this sector.

“Given our vast experience in the Life Science sector, we are tapping into our expertise to provide this sector with prompt humanitarian aid which needs to efficiently reach the affected communities in times of crisis” said Mr. Amadou Diallo, CEO – South Asia Pacific, DHL Global Forwarding.

The DHL Aid & Relief unit in Singapore will be staffed by committed personnel with extensive knowledge of this sector, who will develop flexible solutions for local conditions and provide the critical 24/7 coverage and support that this sector requires.

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