DHL, a global leader in express and logistics services, is preparing to spend millions of euros to expand its business capacity in Thailand.

The investment will develop DHL Exel Supply Chain (DESC) unit, a third-party logistics services provider, in technology, human resources, real estate and domestic transport capacity, said Steve Daniel, senior vice-president for South Asia and Indochina of DESC. He outlined DESC's goals at the 11th ECR Asia Pacific Conference in Bangkok yesterday.

Paul Harry Graham, chief executive of DESC Asia Pacific, said the investment showed the company's faith in the Asian economy despite the global slowdown. It is banking on China's huge reserves and domestic consumption to help it weather the financial storm.

He and Mr Daniel expect DHL (Thailand) to grow slightly faster than GDP.

Though it sees Thailand as an ideal location for logistics services, Mr Daniel said improvement in infrastructure such as rail, regulations and paperwork would vastly improve competitiveness.

''Without proper infrastructure, costs here are more expensive than in Singapore by 30%. But this could be shed by tackling the right issues,'' he said.

In Thailand, DHL owns 120 one-ton pickup trucks and 18-wheelers, 50 offices and warehouse locations, with warehouses covering almost 320,000 square metres. It currently employs 5,400 staff.