DHL inaugurates the new, state-of-the-art central asia hub
- The US$100 Million Dedicated Air Express Cargo Facility Enhances
- DHL's Express Throughput in the Region
DHL, the world's leading express and logistics company, today openedits new Central Asia Hub, a dedicated and purpose-built air expresscargo facility, at the Hong Kong International Airport. A centrepieceof DHL's infrastructure in the region, the US$100 million facility isthe largest of its kind in the region and forms an important stepforward in DHL's long-term regional growth strategy. With the newCentral Asia Hub, DHL's regional throughput is expected to increasesubstantially on the back of growing intra-Asia Pacific trade.
Mr.John Mullen, Chief Executive Officer - Asia Pacific, DHL Express, saidat today's official opening ceremony: "DHL has been experiencing astrong double digit growth in Asia Pacific over the past 5 years.Intra-Asia Pacific cargo volumes now account for close to 50% of DHLExpress' revenues in the region and is our fastest growing segment.Recognizing the potential of the logistics market in Asia very early,DHL has been pursuing a growth strategy focusing on capacity building.Through significant investments in infrastructure, technology andnetwork, we will ensure that we are well placed to fulfill futurecustomer demand. The construction and operation of the new Central AsiaHub is an extension of this strategy."
Mr. Stephen Ip, Secretaryfor Economic Development and Labour, HKSAR, said: "Both the Governmentand the Airport Authority are firmly committed to providing afavourable environment for our cargo industry. But we also needinvestors to realize the business potential of this burgeoning market.The express cargo market in particular is expected to grow at aspectacular rate of 13% per annum in the next two decades. In thisrespect, I congratulate DHL on its smart decision to build the CentralAsia Hub in Hong Kong, which is a vote of confidence in our airport andin the future of Hong Kong's air cargo industry."
Dr. David J.Pang, Chief Executive Officer, Airport Authority Hong Kong, said: " Theopening of this hub has been very timely. DHL's decision to locate itsnew Central Asia Hub here, making Hong Kong International Airport thehub of hubs within the region, affirms the strategic positioning ofHong Kong International Airport as an ideal Asia-Pacific hub with majormarkets reachable by air within a few hours."
Over the past fewyears, DHL's investments in the region have totaled over US$1.1 billionwith a focus on the building of dedicated infrastructure, enhancementsof existing hubs and gateways, technology, and the continuous expansionof DHL's dedicated Air Network. In addition to the new Central AsiaHub, DHL operates five hubs in Bangkok, Seoul, Singapore, Sydney andTokyo with gateways in major airports in the region.
"Strategicallylocated in Hong Kong, which is within a four-hour average flying timeto major cities in Asia Pacific, the new Central Asia Hub willsignificantly increase express shipment throughput capacity in HongKong and Southern China, strengthening Hong Kong's position as aleading regional hub and logistics gateway to China. Already, over 60%of express cargo processed by the Central Asia Hub is intra-AsiaPacific shipments. It clearly reflects the important role that HongKong plays as a conduit for international and intra-Asia Pacifictrade," continued Mr. Mullen.
In Asia Pacific, DHL's keymarkets include Japan, Hong Kong and Korea with China as a key driverof its continued growth. DHL's business in China has consistentlyregistered an annualized growth rate of between 35% and 45% over thepast few years. In the first half of 2004, DHL's business has increasedby between 50% and 60% in China. Over 70% of DHL's China in- andout-bound shipments are routed through Hong Kong.
With theopening of the new Central Asia Hub, DHL has become the only expressand logistics company to operate a dedicated air express cargo facilityin Hong Kong. The 18,200-square metres facility is capable of handlingup to 440 tonnes of air express cargo per day.
Prior to itsofficial opening, the Central Asia Hub has been awarded a TAPA Class-Acertification, lifting the total of DHL's TAPA certified facilities toover 40. DHL now has the largest number of TAPA certified facilities inthe region, further underscoring its commitment to cargo security.
Inparallel to logistics infrastructure development, DHL has beenprogressively expanding its dedicated Air Network. Recently, DHL hasincreased payload capacity on its dedicated Hong Kong-Shanghai by 60%and Hong Kong-Manila services by over 20% in response to increasingdemand. DHL's dedicated Air Network now covers 25 destinations in 16countries and is served by 20 aircraft in dedicated air operations andover 800 commercial flights daily.
Since May 2004, DHL haslaunched dedicated freighters in its distinctive red and yellow liveryon the Singapore-Kuala Lumpur and Ho Chi Minh City - Bangkok turnaroundroute. These DHL-liveried freighters bear witness to DHL's expandingpresence in the region.