Global courier firm DHL plans a USD$1.2 billion upgrade to its US delivery network over the next three years in a challenge to United Parcel Service and FedEx, The Wall Street Journal said Friday.
The US arm of DHL, a unit of Germany's Deutsche Post, plans to add seven regional package-handling hubs within roughly the next year, the newspaper reported.
It also will open five more sorting centers after 2005, giving it a total of 24 major US distribution hubs, the Journal said.
Deutsche Post listed its Postbank retail banking unit on the stock market this week as it prepares to spend up to 2.6 billion euros (USD$3.16 billion) to help turn it into the world's biggest logistics business by the end of the year.
UPS and FedEx currently have a combined US market share of more than 70 percent, while DHL holds only 6 percent of the market, according to the Journal. It said the US package delivery industry is valued at about USD$48 billion a year.
"We're just simply putting in place what we promised when we said we were going to be serious about getting into the US," the paper quoted John Fellows, chief executive of DHL's operations in the Americas, as saying.
DHL recently unveiled a USD$150 million US advertising campaign following its purchase of the ground operations of US carrier Airborne last year.
