„DACHSER places significant importance on the rapidly growing Asia-Pacific region“ 

Burkhard Eling, CEO of DACHSER SE, the German logistics giant, highlights positive factors contributing to the continuous growth of the Asia-Pacific logistics market. The company is ready to invest and use Thailand as a service base for customers in the region, emphasizing that AI and IoT technologies will enhance competitiveness and transform the future of logistics.

During his recent visit to Thailand, Burkhard Eling, CEO of DACHSER SE, a global logistics and warehousing service provider with a major market in Europe and headquartered in Kempten, Germany, along with Roman Mueller, Managing Director for the Asia-Pacific region, gave an exclusive interview to "Thansettakij" regarding Thailand's potential as a regional logistics hub. They discussed opportunities and challenges from DACHSER SE's perspective, a company founded in 1930 with more than 380 branches in 43 countries worldwide, including Thailand, operating under DACHSER (Thailand) Co., Ltd.

"Logistics" is one of the eight key industries under the Thailand Vision "Ignite Thailand" announced by the government in February 2024. The goal is to elevate Thailand to become a global industrial hub and ensure a sustainable economic future. In terms of the logistics industry, Thailand is committed to becoming a regional transportation hub through massive infrastructure and transportation system development, connecting the Western and Eastern worlds.

"We started primarily from Germany and the European region before expanding globally, with our first branch outside Europe in the United States, which remains a crucial market. Currently, DACHSER places significant importance on the rapidly growing Asia-Pacific region, and we aim to generate approximately 10% of our total revenue from the Asian market," stated DACHSER's CEO, explaining the rationale behind the internal workshop held in Bangkok this past June

Logistics Business Trends: Technology is the Answer

DACHSER's executives view the global logistics business landscape as being revolutionized by advancements in artificial intelligence (AI) and the Internet of Things (IoT)—a network of interconnected devices communicating through the internet and facilitating interactions between devices and cloud systems. These technologies will be key drivers in transforming the logistics industry. The sector will also be "boosted" by the booming e-commerce market. Additionally, there will be changes and enhancements in logistics driven by the concept of sustainable business practices and the adaptation of supply chains.

Focusing specifically on the Asia-Pacific region, it is evident that several positive factors are driving the growth of the logistics business, including:

Thus, the key trend shaping the future of the logistics business, both globally and regionally, is the advancement of technology, which will be integrated with sustainable business practices. However, the dynamics in the Asia-Pacific region will progress rapidly due to high market growth and ongoing investments in development processes.

In such a dynamic context, the expansion of the logistics business in the Asia-Pacific region presents both significant opportunities and challenges. DACHSER, as one of the leading European firms, is ready to fully enter the Asia-Pacific and global markets.

"We have three pillars in our business: a global network of offices and warehouses, a comprehensive and interconnected IT system, and our personnel, which includes our corporate culture. These three pillars have made us a strong organization for a long time and will continue to support our growth," said Burkhard Eling, CEO of DACHSER.

The Key is to Provide Intelligent Global Logistics Solutions

"There are numerous challenges in this business. As you can see, there are wars and conflicts in various regions, such as the Middle East and the Red Sea, which drive up transportation costs. During the COVID pandemic, both supply chains and production chains were severely impacted. We collectively call these uncertainties. But our role as a service provider is to manage these uncertainties, enabling our customers to predict and plan their operations with the data and solutions our system provides. This makes their work easier, more reliable, and smoother even amid such situations. As Mr. Eling mentioned earlier, we have three pillars that ensure customer confidence and help them navigate these challenges," said Mueller.

DACHSER's executives also commented on Thailand's Land Bridge project, stating that it is an interesting initiative that the company is closely monitoring. Drawing from their experience in Europe, they noted that projects linking transportation and public travel bring significant benefits and economic value. For example, the Channel Tunnel (connecting the UK with France) and the underwater bridge connecting Denmark with Sweden, not only reduce travel time but also provide immense commercial, trade, and transportation benefits.

As a logistics service provider, DACHSER believes that during the development phase of this project, it is crucial to be prepared. Being ready to act quickly and efficiently, in alignment with any emerging situations or changes, is essential.

DACHSER entered the Thai market in 2008 and acquired 100% of its Thai subsidiaries in 2014. The company opened a sales office in Chiang Mai in 2023 to extend its services in the north. Other DACHSER offices are located in Bangkok, Suvarnabhumi Airport and Laem Chabang.

DACHSER currently employs more than 80 people and in terms of volume, it handled 3,642 tons of air freight, shipped 11,714 TEUs of sea freight, and moved 17,593 shipments in the 2023 financial year.

While automotive is a focus sector for DACHSER Thailand, it also sees good opportunities in healthcare, fashion, and more. Given the evolving needs of customers, DACHSER is committed to introducing new solutions and innovations to improve warehousing and cross-border trucking.

DACHSER's executives added that sustainability is another priority and the company has implemented new measures to achieve positive results. For example, they are considering increasing the use of electric trucks for daily operations.