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    DHL sees fastest growth
    in Russia, opens terminal

    ST. PETERSBURG—Deutsche Post AG, Europe’s biggest postal service, said its DHL Express division is experiencing its fastest emerging-market growth in Russia and plans to spend $250 million over the next four years developing its transportation network in the country.

    DHL is already seeing the “fastest growth” in Russia, said David Wilson, sales director for Eastern Europe, the Middle East and Africa.

    The €15-million ($23-million) terminal will handle 500 metric tons a day, said Adrian Marley, general manager of DHL Russia.

    The company is spending $250 million in the next four years to develop port operations and make other network improvements in Russia, driven by rising demand for consumer products.

    “If someone lives in Omsk, he wants to have the latest telephone, the latest cars, the latest designer fashion as quickly as somebody in Moscow,” Marley said, referring to a city in western Siberia north of the border with Kazakhstan.

    DHL serves more than 12,000 companies across more than 500 cities and towns in Russia, handling 5.5 million shipments a year.

    Besides consumer products, DHL’s growth in the country is rising on shipments of spare parts for cars, Marley said. DHL had record revenue growth in April that was “higher than in the teens” in percentage terms, Wilson said. “It was fueled by countries like Russia growing at 40 percent.”

    The new terminal, located near St. Petersburg’s Pulkovo airport, will be linked to Asia and North America via Finland and DHL’s hub in Leipzig, Germany.

    The company may launch a direct aircraft run from Leipzig to Moscow and St. Petersburg, Wilson said, declining to elaborate on timing.

    If DHL builds up sufficient volumes of shipments in Russia, the company may consider direct flights to Asia, he said. (Bloomberg)

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