DHL Supply Chain (Thailand), a subsidiary of the German logistics giant, says it expects the company's growth to double over the next five years due to a constant rise in demand for goods distribution services, its integrated services and the growing economy.
"We expect logistics demand from our traditional clients to rise, while new customers are likely to require more effective logistics services with the Thai economy growing," said Kevin Burrell, chief executive of DHL Supply Chain for Thailand, Philippines, and Vietnam.
"More companies are beginning to outsource their logistics operations, so we see a lot of upside potential in that."
Mr Burrell estimates the Thai logistics industry is worth 300 billion baht annually with growth of around 6% a year. DHL is aiming for double-digit growth every year.
DHL Supply Chain provides services to retail customers, distributes consumer goods and provides logistics for automotive and auto parts companies.
The company gained around 45% of revenue from the retailing business, 25% from distributing consumer goods and 15% from the automotive logistics business.
This year it will focus on raising revenue from the automotive sector and logistics operations for healthcare products.
"The Thai automotive industry has been bullish the past few years, and DHL has invested a lot to provide better services in that sector," Mr Burrell said.
"Our market share for distributing retail goods grows constantly thanks to increasing sales channels, including e-commerce."
The market is expected to grow after the full implementation of the Asean Economic Community this year. Mr Burrell said Thailand is located in a perfect geographical spot to be an Asean logistics hub.
"Generally, the Thai logistics industry needed to be more efficient so that Thai products could compete on the international market," he said.
Yesterday, DHL Supply Chain opened its new 120,000-square-metre logistics centre in Bang Na district of Bangkok, costing €20 million (739 million baht). It plans to invest another €50 million over three years to expand the business, including a new warehouse in Ayutthaya province this year.