Rhenus is now beaming globally from the land of smiles.
Since Rhenus began active operations in Thailand in 1996, its presence has expanded steadily with currently eleven warehouses, cross-docking facilities and office locations. The leading global logistics specialist from Germany recently moved its regional headquarters to vibrant Bangkok, symbolising the company’s aspirations to solidify its foothold in APAC.
Rhenus Group has a large global network and business operation with an annual turnover of EUR 8.6 billion and 39,000 employees in 1,120 locations.
160 years of Germany-Thailand trade relations
Family-owned Rhenus is one of many German corporations which are invested in various sectors in Thailand, including manufacturing, technology and services. Diplomatic partners since 1862, Germany and Thailand share an enduring partnership built on extensive areas of mutual interests including economic cooperation, cultural exchange, technological collaboration, and the pursuit of common goals on the international stage. “For us as Rhenus, Thailand holds significant importance as it continues to expand its global presence and strengthen its position in the region”, said Mr Jan Harnisch, CEO of Rhenus Air & Ocean.
Germany is Thailand’s most important trading partner in the European Union. In 2022, German companies exported goods valued at around EUR 5.4 billion to Thailand, while imports from Thailand to Germany summed up to around EUR 8.6 billion, which accounts for a bilateral trade volume increase of 28% compared to pre-COVID levels in 2019. This influx of investment has prompted collaborations between German and Thai companies, significantly fostering economic expansion and the transfer of technological expansion. Alongside approximately 600 German companies operating in Thailand, the substantial inflow of German tourists (hovering around 900,000 each year before the pandemic) plays a part in bilateral economic relations. Similarly, as the second largest economy in Southeast Asia, Thailand is one of Germany’s most important trading partners in the region.
Thailand, a significant venture for Rhenus
The establishment of this new regional hub heralds a new chapter for the company. Mr Harnisch explained, “Thanks to the country's central location in Southeast Asia, Thailand is a gateway to other countries in the region, providing significant opportunities for businesses operating in the logistics sector. With its growing e-commerce market and increasing demand for high-quality logistics services, Thailand presents an exciting growth prospect for us.”
Nestled at the heart of Southeast Asia, Thailand is supported by a developed infrastructure and modern transportation networks.
Vital maritime trade routes converge with roadways that offer easy access to neighboring Cambodia, Laos, Malaysia and Myanmar, while six international airports elevate this geographical advantage. Suvarnabhumi Airport, one of Southeast Asia's busiest airports, serves as a major air cargo hub, facilitating the movement of goods by air. Thailand's largest and busiest deep-sea port, Laem Chabang Port, serves as a major ocean freight hub in Southeast Asia and ranks in the top 20 busiest ports worldwide. These multimodal transportation options contribute to an ecosystem that thrives on efficiency, solidifying Thailand's commitment to fostering seamless connectivity, facilitating trade, and advancing its role as a central hub for regional and international logistics operations.
Other enticing prospects include the many incentives and benefits offered by the Thailand Board of Investment to attract foreign direct investment (FDI). The first half of 2023 saw USD 10.3 billion worth of applications for investment promotion, a year-on-year increase of 70 percent. Total FDI climbed 141 percent as more global companies chose Thailand as a manufacturing base for their businesses in targeted industries including electronics, automotive and food processing.
These developments and initiatives have given rise to a diverse labour pool that drives Thailand’s economic pursuits: Go-getters who have a wide range of sectors and prospects to channel their energy and passions into. Over the years, the demand for skilled labour has led to an emphasis on education and training programs, creating a talent pool that is innovative, driven, entrepreneurial and well-prepared for the demands of a modern economy.
A thriving economy, supportive business ecosystem, and well-developed infrastructure are just some of the factors that make Thailand an attractive destination for companies looking to relocate their operations. For Rhenus, it is as simple as adjusting its strategy to follow its customers in order to provide the best solutions.
“One of the main factors that makes Thailand an essential market for Rhenus is its business-friendly environment. Due to favourable government policies and an overall pro-business climate, Thailand has attracted numerous multinational corporations, including us,” Mr Harnisch added.
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