DHL’s recently established domestic express delivery subsidiary in China is likely to grow organically rather than through acquisition, a senior executive told IFW.

Sinotrans-Apex was launched earlier in June by Shanghai Quanyi Express and Beijing Sinotrans Express, both owned by the DHL-Sinotrans joint venture.

Charlie Dobbie, executive VP for global network operations and IT at DHL Express, said the short-term focus for the unit was to build a quality national network operating at the premium end of the market. “We are hesitant about acquisitions of domestic organisations and then trying to fit them into a network,” he added.

Sinotrans-Apex provides services in 662 Chinese cities and economic centres, a total that is set to rise to 800 over the next two years. By the end of 2011, it aims to have a network of 25 hubs and sorting centres across the country.