Can you give us an introduction to DHL in Spain?
In 2019, we celebrate the 50th Anniversary of DHL since it was born in San Francisco in 1969. 10 years later, the company began its business activity in Spain with nine people in a small flat in Madrid, so we are also celebrating the 40 Anniversary in Spain. Few years later, it expanded the business and was established in a flat in Barcelona center. Since then we have not stopped growing and nowadays we are approx. 1,100 employees and have a fleet of 900 vans and 13 aircrafts. Today, we offer our portfolio of logistics services in international express to our customers whether they are large or small businesses. In 2013, concerning the B2C business, we started moving from traditional document shipping to the e-commerce shipping.
How do you intend to maintain this growth?
In 2018 growth came mainly from e-commerce shipping since the classic business is more or less steady and tends to grow at a rate of 1-2%. The plan for 2020 is to continue growing by 8-9%, the majority of which will come from e-commerce, as there is a huge potential in this market. The challenge is that although 50% of our deliveries are B2C e-commerce shipments, only 25% of our revenue comes from it. We expect to increase this percentage by at least two or three points every year for five years when it is expected that at least 60% of our deliveries will come from e-commerce.
Can you go into more detail about the new conveyor belts DHL introduced to increase its capacity?
We are investing in this because we need to move more packages in less time by automating our premises. We have invested around EUR93 million in our Madrid hub. Two years ago, we also invested in a new conveyor system in our hub in Vitoria to expand our network to other areas such as Santiago de Compostela, Lisbon, Porto, Seville, Valencia, and Alicante. This is not only about processing packages faster but also about a need to be more efficient and deliver according to the customers' needs. We are developing our drop-off points and our online applications such as On-Demand Delivery (ODD) in order to offer our customers the opportunity to choose how they want their shipments to be delivered. We are also investing in ITC systems to improve the lives of our customers. On top of this, is the DHL Parcelcopter, a drone able to deliver in hard-to-reach areas with mountains, rivers, and such terrain.
The DHL group aims to become zero net emissions by 2050. How will this be achieved in a sector that contributes extensively to emissions?
In this sense, DHL has set an ambitious plan to achieve it, which includes different types of actions that are included in our GoGreen Program. We have fleet renewal plans from today until 2025, where our goal is to reach 70% of clean collection and delivery solutions on our last mile. We offer solutions that allow companies to use a green transport service, through our Go-Green program, neutralizing the CO2 emissions derived from the transport of its shipments. We also have quarterly and annual reports so that companies can account for their emissions.
Is it the objective of the new hub in Madrid to be a connection center between Europe and Latin America?
Madrid has excellent transport and communications infrastructures such as the Adolfo Suárez Madrid-Barajas airport as well as an innovative and growing business fabric. All these features make the city of Madrid, a key privileged spot within the company's strategy. Our aim is to maintain our leadership and to grow through quality. Thus we are investing in infrastructures to increase efficiency and to improve our delivery capability. This will allow us to provide an even better service to our customers. This new hub is a critical nexus between Europe and the Latam countries. Thanks to this, we could connect businesses from all industries and private consumers alike, and enable them to leverage from the increasingly growing e-commerce worldwide.
What makes Spain such a magnet for transport and logistics centers?
The privileged geographical location of Madrid makes connections be easier; by road it is possible to cover an extremely large area in eight hours and by air, Madrid airport also offers an extraordinary advantage since it is the fifth in the list of best airports in Europe, with many connections worldwide. Barcelona area is also convenient for logistics centers because it has a great deal of industry and is home to one of the main ports in the Mediterranean. That is the reason why top international companies have located their logistics hubs in Catalonia. Furthermore, Barcelona is close to the French border, and we can deliver the shipments to the south of France in the same day that they arrive at Barcelona airport. Definitively, in terms of cost, Spain is still a strategic location to build warehouses in comparison to other places in Europe.
What are the main objectives for 2019 and 2020?
Our main objective for the coming years is continuing investing in state of the art facilities such as the new installation in Castellbisbal, Barcelona. We want also to continue investing in sustainable means in last mile deliveries, p.e. with electrical vehicles at Barcelona city center. Our budget assignment is to continue growing in B2C business and e-commerce in B2B, with the aim of growing around 8% next year for both B2C and B2B.