November 14 - DHL has revealed its global strategy to boost its service offerings and infrastructure for the EUR260 billion (USD388 billion) global oil and energy logistics industry.

DHL has also launched a dedicated oil and energy Centre of Excellence (COE) in Singapore to serve the Asia Pacific region, as the company expands its global network of these facilities to capitalise on market demand.

With more than 200 staff, the DHL Asia Pacific Oil & Energy Centre of Excellence in Singapore's Changi South is the eighth and largest DHL facility of this kind.

According to a DHL statement, the global oil and energy sector currently spends about EUR260 billion (USD388 billion) on logistics. World energy demand is expected to grow by 74 percent by 2030 from 2005 levels, with China alone expected to account for 30 percent of that growth.

DHL says that the industry is also expected to attract an average of Eur600 billion (USD895 billion) a year in investments, to reach EUR15 trillion (USD22.37 trillion) in cumulated investments in the energy sector by 2030.

However, the oil and energy industry poses numerous logistics challenges, including 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.

However, Hans Toggweiler, global head of oil & energy for DHL Global Forwarding, adds that expansion in alternative energy sources 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," Toggweiler says.

Adds Hermann Ude, CEO, DHL Global Forwarding, Freight."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 percent to the cost of a turbine, as the parts may exceed capacity of regular transport modes."

Led by Sam Ang, CEO, Southeast Asia, DHL Global Forwarding, the Singapore Centre of Excellence is interlinked with a network of seven other regional centres across the US, Europe, Middle East and Africa to support the growth of multiple business divisions servicing the world's energy suppliers.

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