DHL Express will invest S$140 million (US$102 million) in its South Asia hub, a 24-hour express hub facility located within Changi Airfreight Center at Singapore Changi Airport. This is the largest infrastructural amount invested by DHL Express in Singapore.

 

Jerry Hsu, CEO, DHL Express Asia-Pacific, said: "The DHL Express South Asia hub reinforces our 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."

 

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 sqm and a total floor area of 23,600 sqm, 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 tonnes 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 tonnes 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 CAG, 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.

 

Construction of DHL South Asia hub is expected to be completed by the first quarter of 2016.