DHL Express invests EUR 750 mn in Asia Pacific on back of e-com growth

2020-11-18 11:16:19 Logistics News (Airlines & Aviation)

DHL Express has announced that it is investing EUR 690 million between 2020 and 2022 to build or expand its facilities in key growth markets of Australia, Japan, Hong Kong S.A.R. and South Korea.

Equally, it intends to spend close to EUR 60 million to bolster its Asia Pacific air network such as introducing direct, new (e.g. Vientiane, Yangon), and frequent (e.g. Oceania) flight routes.

These investments are a testament to our continued confidence in the region

DHL Express expects shipment volumes in the Asia Pacific to be 30-40 percent larger than last year’s peak season, which typically starts around November and lasts until Lunar New Year. “These investments are a testament to our continued confidence in the region. They are crucial not only in the near term as we expect to tackle an unusually strong peak season, but it will make sure that we are well-positioned in the long run to keep global trade running as e-commerce and cross-border trade grow,” said Ken Lee, CEO of DHL Express Asia Pacific.

Since the start of 2020, DHL Express has experienced a 50 percent surge in e-commerce shipments in the Asia Pacific (excluding China).

North Asia investments in expansions

The Osaka Distribution Center in Japan scheduled to be opened by the end of 2020 will be DHL Express’ largest distribution facility in the country. With an investment of EUR 71.4 million, it will have 21,000 square meters (sqm) of floor space and is equipped with a state-of-the-art sorting system and X-ray inspection machines.

The company’s Central Asia Hub (CAH) in Hong Kong S.A.R., one of DHL Express’ three global hubs, has a EUR 377 million expansion underway that will boost warehouse space by 50 percent to 47,000 sqm and increase the hub’s annual throughput to 125,000 pieces per hour. This means that the hub will be handling six times more in terms of shipment volume than when it was first opened in 2004.

Furthermore, a EUR 131 million planned investment in a gateway facility in Incheon, Seoul, South Korea will boost shipment processing capacity by approximately 160 percent, equipping it to service demand from some of the region’s most advanced economies. The expansion will almost triple the facility’s gross floor area to 58,700 sqm, making it DHL Express’ largest gateway in Asia Pacific.

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