AMSTERDAM, March 12 (Reuters) - DHL Express Europe, a unit of Deutsche Post DHL, will continue with its investment plans in the Middle East despite the war in Iran as the region has a key role for the
DHL Express keeps investment plans in Middle East despite war
Continued Commitment to Middle East Investments
AMSTERDAM, March 12 (Reuters) - DHL Express Europe will continue with its Middle East investment plans despite the war in Iran as the region has a key long-term role for the business, its CEO Mike Parra said on Thursday.
The Deutsche Post DHL group has announced more than 500 million euros ($577 million) in investment in the Middle East through 2030, especially in Saudi Arabia and the United Arab Emirates.
CEO Statement on Regional Importance
"The investments in the Middle East continue," Parra told journalists in Amsterdam, adding: "We see the Middle East having a key role for us from a long-term perspective".
Impact of Regional Conflict on Operations
The U.S.-Israeli strikes on Iran on Feb. 28 resulted in the closure of airports across the Middle East and effectively halted shipping through the Strait of Hormuz, a key global energy trading route.
Logistics Adaptations and Contingency Plans
Parra said that in response to airport closures the company had "connected the Middle East with Europe also via road. We are flying in out of Asia into Kazakhstan. And then from Kazakhstan, we're trucking throughout the Middle East. So we've got contingency plans that are in place."
Financial Implications for Customers
He said higher costs were being passed on to customers in the form of a security risk surcharge.
Insurance and Security Costs
"We're having to pay higher levels of insurance, as an example, for our pilots and the assets that are flying into markets that are at risk," Parra added.
Additional Information
($1 = 0.8661 euros)
(Reporting by Anthony Deutsch and Inti Landauro; Editing by Alexander Smith)
