DHL invests S$140M to build South Asia Hub
Singapore – DHL Express, the world’s leading international express services provider, unveiled the blueprint of DHL Express South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Center at Singapore Changi Airport.
The new facility, in line with DHL Express’ global investments to bolster network connectivity, boasts a total investment of Singapore $140 million, the largest infrastructural amount invested by DHL Express in Singapore, to better support regional businesses operating in and out of Singapore.
Speaking at the unveiling event, Jerry Hsu, CEO, DHL Express Asia Pacific, said the DHL Express South Asia Hub reinforces the firm’s global multi-hub strategy by leveraging the unmatched regional connectivity provided by Changi Airport and Singapore.
“In Asia Pacific, DHL Express’ four hubs – Shanghai, Hong Kong, Bangkok and Singapore – link to over 70 DHL Express Gateways located throughout the region. With the continued growth of the Asia Pacific economies, the South Asia Hub will provide the necessary logistics capabilities to support the growth of trade within the region,” Hsu said.
The South Asia Hub reinforces DHL’s multi-hub strategy to strengthen its market position in Asia with major investments in infrastructure and services.
DHL’s network is served by a comprehensive air network of over 40 aircraft covering 40 countries and territories, and utilizing approximately 690 commercial flights per day in Asia Pacific.
Occupying a land area of 26,200 square meters and a total floor area of 23,600 square meters, DHL Express South Asia Hub features the first fully automated express parcel sorting and processing system in Singapore and South Asia.
Upon completion, the facility will be able to handle a cargo throughput of more than 628 tons per day when at full capacity and process shipments at the speed of 14,000 shipments per hour. In comparison, the manual processing system in the current facility handles up to 225 tons per day at a speed of 2,400 shipments per hour.
DHL Express has been working with Changi Airport Group (CAG) on its expansion plans since 2013, and will move its South Asia Hub to a bigger premise at CAC, a 24-hour Free Trade Zone managed by CAG.
Changi Airport is currently connected to more than 300 cities across 79 countries, with over 100 airlines operating about 6,500 flights every week. Changi Airport’s strong global connectivity, especially across Southeast Asia, coupled with the additional flights on the DHL network will provide more choices and capacity for DHL Express to serve the region in the long term.
The latest development comes on top of a recent series of plans to bolster DHL Express’ network infrastructure in the region. This includes DHL Express’ Central Asia Hub in Hong Kong which boasts the region’s largest throughput, the North Asia Hub in Shanghai Pudong International Airport, and a new gateway in Tokyo slated for completion in 2016.
Singapore has always been at the heart of DHL’s network in Southeast Asia and South Asia. Leveraging the island-nation’s strategic location, DHL’s current facility is responsible for consolidating and distributing shipments to these regions. It is also a vital springboard to other continents as shipments from Singapore can reach Germany via flights through India while those going to Oceania can connect through Australia. Once the expanded South Asia Hub is completed, DHL will be able to support up to five times more flights in Singapore, further capitalizing on the country’s prime position.
Construction of DHL South Asia Hub is expected to be completed by the first quarter of 2016.
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