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    German company to expand RP business
     
    By VG Cabuag
    Reporter

    AFTER acquiring a local freight forwarder, a German logistics company expressed confidence that its Philippine operations would soon expand since it will focus on serving the country’s high-technology, retail, and health industries.

    Renier A. Allgeier, Schenker Deustche Bahn’s (DB) logistics managing director, said that the company is planning to grow its supply chain management across the archipelago by establishing more warehousing facilities and taking advantage of the Roll-on/Roll-off (Ro-Ro) transport system in ports nationwide.

    Although the executive refused to say how much the company will be investing in the country, he nevertheless said that most of its warehouses are only being rented.

    “The semiconductor [industry] in the country is a very interesting market for a logistics company. When I arrived here six months ago, there were already 900 companies that are engaged in semiconductors. For sure, it is one of our target industries,” he said during an event last week marking Schenker DB’s acquisition of CPI Logistics, which has penetrated the Asia-Pacific market over the last decade. 

    He added that the company is planning to attract more customers, especially in the health-care industry, since the company is capable of delivering medicine across the country from its laboratory.

    “We are going to work on that segment and try to get more customers in the future,” Allgeier said, saying that the company only has a handful of clients in this category.

    Besides acquiring CPI Logistics, Schenker DB also bought its competitor, the California-headquartered Burlington Air Express (BAX) Global Inc. which also has a foothold in the region.

    While Schenker remains strong in air forwarding, CPI, which has 180 local employees, has freight and warehousing operations in the region. For its part, BAX Global’s core business covers sea freight and logistics.

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