postal service provider DHL Express has
lined up €335 million expansion plan for its Central Asia Hub (CAH), in
partnership with the Airport Authority Hong Kong, says a release on 14th Nov.
This expansion brings DHL’s commitment to this strategic hub to over €520
million, making it the largest infrastructural investment by DHL Express in
Asia Pacific to date.
investment to take on growing trade volumes
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 three global hubs for DHL,
the expanded CAH 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. Ken Allen, CEO of DHL Express, said: “Given the
expected rise in international e-commerce and intra-Asian trade, DHL is
committed to strengthening our global network and services. Based in a
strategically important location to DHL, the expanded Central Asia Hub in Hong
Kong will not only bolster our operational capacity in Asia Pacific, but also
facilitate the rapidly growing international trade demands in the region
and around the world.”
expanded CAH will be equipped with an enhanced material handling system that
will improve productivity and increase the hub’s throughput capacity – from the
current 75,000 pieces of shipments per hour to 125,000 pieces per hour. When
operating at its full capacity, the annual throughput of the expanded CAH is
expected to go up by 50% to 1.06 million tonnes per annum. As a dedicated and
purpose-built air express cargo facility at the Hong Kong International
Airport, the expanded CAH will handle six times more in terms of shipment
volume than when it was first established in 2004.
Lee, 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.