“The logistics business directly depends on growth in customers’ businesses, who hail from different sectors of the economy,” substantiates Shaikh in an interview with The Express Tribune. “Our clients are diversified, from the textile industry to pharmaceuticals, the list goes on for all sorts of imports and exports,” he explains. Despite security concerns and post-flood challenges, he forecasts impressive growth in logistics over the coming years. “Pakistan needs strong shipping lines and air cargo services to match future demand.”
DHL has been fully functional in Pakistan for the last seven years and with its headquarters at Karachi airport, the company has invested heavily in offices and warehouse infrastructure in major cities of the country.
According to the managing director, DHL is keen to expand its businesses in all developing economies, especially those that have shown strong growth in recent years.
He disclosed that DHL has been investing heavily in the training of human resources locally for its upcoming operations. “Pakistan is an important country for us because of which we are continuously investing here.”
Shaikh was also quick to note that the country’s infrastructure has improved considerably over the last 10 years. “The penetration of cellular networks, for example, has been commendable and this has helped companies like ours noticeably,” he stressed.
Replying to a question on competition in the industry, Shaikh said that DHL considers any company involved in the business a competitor, no matter how small or big it may be. He explained that in Pakistan, at least, the clientele was not restricted to any particular segment. “It can be anyone – from an importer who is operating from a warehouse to a large manufacturer who imports or exports on a massive scale.”
He also pointed out that the company had to work closely with the authorities to ensure compliance with ever-advancing security protocols – a fact highlighted by the very recent parcel bomb scare that has gripped the United States and some European countries.
Flood havoc
“The recent floods have brought new challenges for DHL, just like other businesses,” he said, adding that they have damaged infrastructure in all four provinces which is the “single biggest impediment to logistics businesses.”
One of the biggest challenges that the floods have posed is the increased gap in demand and supply. “Similarly, as road links have been damaged our business has also been affected haphazardly in different areas.”
On the flipside, Shaikh admitted that the post-flood scenario has seen an increase in imports and DHL’s volumes have improved with increasing orders from the United Nations and other organisations dispatching goods to Pakistan.
Published in The Express Tribune, November 6th, 2010.
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