DHL Express Americas to invest $137 mln in operating capacity this year-executive

·2 min read

By Nelson Bocanegra

BOGOTA, May 18 (Reuters) - The Americas division of German logistics giant Deutsche Post AG will invest $137 million this year in increasing its operating capacity, including spending on airplanes, its chief said on Wednesday.

DHL Express in the Americas - which covers countries from Canada to Chile - is also planning to double its electric vehicle fleet from 327 units, the division's chief executive, Mike Parra, told Reuters.

"Just this year there will be $137 million in the Americas, in operation expansions, installation and building capacity; the other part is investments in airplanes," Parra said, adding that the company will add a new flight from Miami to South America in July. "The last part of investments is in electric vehicles."

Income for the Americas division was up 29% last year compared with the year before, at 5 billion euros ($5.23 billion).

The company is holding fast to its EBITDA projection of 8 billion euros for this year, Parra said, though outcomes will depend on the next three months and global pressures like lockdowns in China, the war in Ukraine and high inflation.

"In March and April we started to see the impact of China in terms of the pandemic and ... also in supplies and movement in Ukraine," Parra said in a telephone interview.

Inflation increases around the world have lead to higher gasoline costs, he added.

"Up until now we're keeping the guidance that we gave to the market, but I don't know if that will change or not, that will depend a lot on the next 90 days," he said.

Once coronavirus restrictions in China are lifted and prices moderate, Parra said he expects soaring shipments.

"We are going to see a quantity of material that will come from China to many countries in the Americas, because demand is higher than the capacity at this time." ($1 = 0.9557 euro) (Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb Editing by Jonathan Oatis)

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