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DHL announces additional €335 million expansion of its strategic Central Asia Hub in Hong Kong to bolster regional trade

By   /  November 15, 2017  /  Comments Off on DHL announces additional €335 million expansion of its strategic Central Asia Hub in Hong Kong to bolster regional trade

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Source: Media Outreach
Headline: DHL announces additional €335 million expansion of its strategic Central Asia Hub in Hong Kong to bolster regional trade
Marks DHL’s total commitment  in this strategic hub at over €520 millionWith an expected 50% increase in annual throughput, theexpanded Central Asia Hub will further boost the company’s global multi-hubstrategy

HONG KONG, CHINA – Media OutReach – 14 November 2017 – DHL Express, the world’sleading international express services provider, today announced a €335 millionexpansion plan for its Central Asia Hub (CAH), in partnership with the AirportAuthority Hong Kong. This expansion brings DHL’s commitment to this strategichub to over €520 million, making it the largest infrastructural investment byDHL Express in Asia Pacific to date.
  DHL today announced the €335 million expansion plan for its Central Asia Hub in Hong Kong, in partnership with Airport Authority Hong Kong. Ken Allen, CEO of DHL Express (right) and Fred Lam, CEO of Airport Authority Hong Kong (left), signed an agreement at the DHL Central Asia Hub located at the Hong Kong International Airport. Ken Allen, CEO of DHL Express (middle) and Fred Lam, CEO, Airport Authority Hong Kong (third from left) celebrated the expansion plan for DHL Central Asia Hub with officiating guests (from left to right): Alaina Shum, General Manager, Aviation Logistics, Airport Authority Hong Kong; Cissy Chan, Executive Director, Commercial, Airport Authority Hong Kong; Ken Lee, CEO of DHL Express Asia Pacific; Sean Wall, Executive Vice President, Network Operations and Aviation, DHL Express Asia Pacific; and Tony Khan, General Manager, DHL Central Asia Hub.
Strategicinvestment to take on growing trade volumes
The expansion is timely as the CAH has recorded an average 12%year-on-year growth in its shipping volume in the past decade. As one of threeglobal hubs for DHL, the expanded CAH will continue to act as the core hub ofthe DHL Express global and Asia Pacific regional network, handling more than40% of its total Asia Pacific shipment volumes.

Ken Allen, CEO ofDHL Express, said: “Given the expected rise in international e-commerce andintra-Asian trade, DHL is committed to strengthening our global network andservices. Based in a strategically important location to DHL, the expandedCentral Asia Hub in Hong Kong will not only bolster our operational capacity inAsia Pacific, but also facilitate the rapidly-growing international tradedemands in the region and around the world.”

The expanded CAH will be equipped with an enhanced material handlingsystem that will improve productivity and increase the hub’s throughputcapacity — from the current 75,000 pieces of shipments per hour to 125,000pieces per hour. When operating at its full capacity, the annual throughput of theexpanded CAH is expected to go up by 50% to 1.06 million tonnes per annum. As a dedicated andpurpose-built air express cargo facility at the Hong Kong InternationalAirport, the expanded CAH will handle six times more in terms of shipment volume than when it was firstestablished in 2004.

Ken Lee, CEO of DHL Express Asia Pacific, said: “Connecting with morethan 70 DHL Express gateways in the region, the Central Asia Hub plays asignificant role in strengthening our existing network of hubs in Asia Pacific,including Shanghai, Singapore and Bangkok. The expansion will also help uscapitalize the growth in intra-Asian trade lane that currently contributes to40% of our revenue in Asia Pacific. Equipped with fully automated X-rayinspection machines, it will increase the speed of our shipment inspection bythree times — enabling us to expedite the processing speed of shipments thatcome through the CAH.”

The expanded CAH is expected to begin operations in Q1 2022, in time tocapture strong demand in the Pan-Pearl River Delta (PPRD) region and completionof the Three Runway System for the Hong Kong International Airport in 2024. Theexpansion of the CAH will deliver about 50% increase in warehouse space to 47,000square meters.

Already a TAPA Class A-certified facility, the expanded CAH will boast astate-of-the-art security system with a total of 520 CCTV cameras and an advancedaccess control system. The CAH also features a Quality Control Center (QCC) whichmonitors flight uplift/landing times in real time, reporting any irregularitieson the spot, which in turn enables DHL to proactively notify customers in theevent of flight delays or cancellations. The QCC is linked to the Asia PacificNetwork Control Centre in Hong Kong and more than 70 gateways and over 500service centers in over 40 cities in other Asian countries.

Strategically located in Hong Kong, within a four-hour flight time tomajor cities in Asia Pacific and in the PPRD region, the CAH is complemented bya well-established Asia Air Network which is served by over 800 commercialdaily flights.

DHL — The logisticscompany for the world

DHL is the leading global brand in the logistics industry. Our DHL familyof divisions offer an unrivalled portfolio of logistics services ranging fromnational and international parcel delivery, e-commerce shipping and fulfillmentsolutions, international express, road, air and ocean transport to industrialsupply chain management. With about 350,000 employees in more than 220countries and territories worldwide, DHL connects people and businessessecurely and reliably, enabling global trade flows. With specialized solutionsfor growth markets and industries including technology, life sciences andhealthcare, energy, automotive and retail, a proven commitment to corporateresponsibility and an unrivalled presence in developing markets, DHL isdecisively positioned as “The logistics company for the world”.

DHL is part of DeutschePost DHL Group. The Group generated revenues of more than 57 billion euros in2016.
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