DHL to Bet Big on Electric Vehicles in Logistics in Asia

Logistics firms DHL & FedEx are upping their game throughout Asia, where the electric vehicle ecosystem is growing, alongside the need for clean energy

Logistics leaders are dedicating time and resources to the EV space, electrifying their fleets as part of wider efforts to achieve carbon neutrality and reduce their environmental impacts on the world around them. Many of these firms are upping their game in Asia, where the electric vehicle ecosystem is growing at a seemingly exponential pace as policymakers support production through subsidies and trade protectionism.

The Economist Intelligence Unit (EIU) – the research and analysis division of the Economist Group – forecasts the continent will account for 63% of the 115m new EVs sold worldwide over the next five years, with EVs accounting for almost two in five (39%) new car sales in the region by 2028. Southeast Asia is likely to emerge as a hub for battery and parts manufacturing, the EIU predicts, whereas India will focus on vehicle manufacturing and assembly for the Asian region. 

DHL’s first-of-its-kind logistics facility for EVs

Sector leaders are working on numerous projects to make their activities more sustainable, whether through fleet electrification or more responsible resource management of air and ground operations. A prime example is FedEx Express successfully executing the first-ever cross-border package delivery from Malaysia to Singapore using an EV. Meanwhile, DHL Global Forwarding, the freight specialist of DHL Group, is launching the Batam EV Center of Excellence, a first-of-its-kind logistics hub for Asia located in Indonesia. 

By opening the facility, DHL is seeking to bridge a gap in Asia’s EV ecosystem. 

The centre is set to offer customers a comprehensive and modular range of services including inbound and outbound logistics across various transportation modes, warehousing with value-added services such as battery check and charge, and full aftermarket battery handling. 

This handling encompasses storage, recharging and dealer services for warranty issues, battery replacement and removal.

The centre of excellence also features temperature and humidity-controlled rooms, as well as a one-stop solution with chambers for both general and dangerous goods.

Developing an integrated EV supply chain across Asia

Batam’s close proximity to the Asia-Pacific region’s manufacturing and trade activities positions the city as an emerging international hub, making it an ideal location for the EV Center of Excellence. 

Customers can enjoy seamless connectivity to global markets without compromising on lead times, complemented by Batam's Free Trade Zone and Special Economic Zone status, this maximising efficiency.

“Indonesia, with its abundant natural resources of nickel and cobalt, is at the forefront of developing an integrated EV supply chain,” comments Vincent Yong, President Director of DHL Global Forwarding Indonesia.

“With the government’s goal of positioning the country among the top three global EV battery producers by 2027, the establishment of Batam EV Center of Excellence marks a significant milestone in supporting the objective, further bolstering the local EV industry.

“DHL has proven expertise in handling EV logistics to the highest standards. We offer flexible and adaptable services, enabling customers to integrate our solutions into their current supply chain processes seamlessly.”

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