DHL Express has announced a €335m expansion plan for its Central Asia hub in partnership with the Airport Authority Hong Kong.
This expansion brings DHL’s commitment to the hub to over €520m, making it the largest infrastructure investment by DHL Express in Asia Pacific to date.
The Hong Kong facility has recorded an average 12% year-on-year growth in its shipping volume in the past decade. As one of three global hubs for DHL, it will continue to act as the core hub of the DHL Express global and Asia Pacific regional network, handling more than 40% of its total Asia Pacific shipment volumes.
An improved material handling system will increase the hub’s throughput capacity from its current 75,000 pieces per hour to 125,000 pieces per hour. When operating at full capacity, the facility’s annual throughput is expected to increase by 50% to 1.06m tonnes. As a dedicated and purpose-built air express cargo facility at the Hong Kong International Airport, the expanded centre will handle six times more in terms of shipment volume than when it was first established in 2004.
The upgraded site is expected to begin operations in Q1 2022, in time to capture strong demand in the Pan-Pearl River Delta region and completion of the Three Runway System for the Hong Kong International Airport in 2024. The expansion of the CAH will entail approximately a 50% increase in warehouse space to 47,000 sq m.
Ken Lee, the CEO of DHL Express Asia Pacific, said: “Connecting with more than 70 DHL Express gateways in the region, the Central Asia Hub plays a significant role in strengthening our existing network of hubs in Asia Pacific, including Shanghai, Singapore and Bangkok. The expansion will also help us capitalize the growth in intra-Asian trade lane that currently contributes to 40% of our revenue in Asia Pacific. Equipped with fully automated X-ray inspection machines, it will increase the speed of our shipment inspection by three times – enabling us to expedite the processing speed of shipments that come through the CAH.”
Source: DHL Express
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