DHL Express has unveiled its €335m (US$394m) expansion plan for its Central Asia Hub (CAH) located at Hong Kong International Airport in China.
The hub has recorded an average 12% year-on-year growth in shipping volumes in the past decade and handles more than 40% of the company’s shipments in the Asia-Pacific.
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 CAH 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.”
The expanded CAH will be equipped with an enhanced material handling system that will increase the hub’s throughput capacity from 75,000 items per hour to 125,000 packages per hour. When operating at its full capacity, the annual throughput of the expanded CAH is expected to grow by 50% to 1.06 million tons per annum.
Ken Lee, CEO of DHL Express Asia-Pacific, said, “Connecting with more than 70 DHL Express gateways in the region, CAH 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 airport.”
The expanded CAH is expected to begin operations in 2022, in time to capture increased demand arising from the completion of the Three Runway System at Hong Kong International Airport in 2024. The expansion of the CAH will increase warehouse space by 50% to 47,000m² (506,000ft²).
Already a TAPA Class A-certified facility, the expanded CAH will boast a state-of-the-art security system with a total of 520 CCTV cameras and an advanced access control system. The CAH also features a Quality Control Center (QCC) which monitors flight uplift/landing times in real time, reporting any irregularities.