DHL to invest US$35 million in Hong Kong to upgrade facilities and boost operational capabilities
Boosting total investments to nearly US$1 billion in the Greater China AreaHong Kong, 01/18/2007, 10:30 AM CET
DHL, the world's leading express and logistics company, today announced a US$35 million investment program in Hong Kong to capitalize on the continued growth of the region's trade. The program comprises the opening of a new facility in South Kowloon which will enhance DHL Express' ground handling capacity by about 20%, as well as a large-scale office relocation plan to further strengthen operational synergy.
Scott Price, Chief Executive Officer - Asia Pacific, DHL Express, said: "We are very pleased to celebrate the beginning of 2007 with this exciting expansion plan. DHL Express Hong Kong ended 2006 with double-digit growth, clearly benefiting from the strength of China's growth and the dynamism of other economies in the region. This is the 5th consecutive year that DHL has recorded double-digit growth in Hong Kong. The investment program brings us close to US$1 billion in our commitment to the Greater China area to position us for the opportunities which abound in this region."
This investment program lifts DHL's total investment in Hong Kong to US$645 million, which includes the US$210 million Central Asia SuperHub, investment in Air Hong Kong, service centers and office facilities. Hong Kong's position as the centerpiece of DHL's hub-and-spoke network has been further cemented by the Company's US$400 million investment in Air Hong Kong, a joint venture with Cathay Pacific, which feeds cargo from around Asia Pacific into Hong Kong for consolidation and transit purposes.
"The new facility, to be named Kowloon South Service Centre, will enhance DHL's ground handling capacity in Hong Kong and supplement its two existing ground handling facilities which are almost operating to their full capacity. The Kowloon South Service Centre will open by the second quarter of 2007," he added.
DHL Express currently operates two ground handling facilities - the Kowloon Central Service Centre in Cheung Sha Wan and the Kowloon West Service Centre in Tsuen Wan. Operating around-the-clock, DHL's ground handling facilities sort and re-distribute incoming shipments for delivery to local consignees, and consolidate outgoing shipments for dispatch to DHL's Central Asia Hub at the Hong Kong International Airport for uplifting onto DHL's dedicated freighters and commercial uplift. With the opening of the new facility, DHL's ground handling capacity will be 45,500 shipments per day.
In a related development, DHL is in the process of relocating all its Hong Kong staff, currently operating out of two offices, to a new centralized office in Hong Kong by 4th quarter of 2007.
"With this relocation plan, we strive to provide an enhanced working environment to boost employee productivity and strengthen team spirit, and to create synergies by housing employees under the same roof," said Mr. Price. To accommodate existing employees and allow for expansion, DHL's new office will require a gross floor area of close to 120,000 sq. ft with a seating capacity of 800 employees.
DHL's air express cargo handling capacity will also be significantly increased when the expansion of its US$210 million Central Asia SuperHub (CAS) at the Hong Kong International Airport is completed in the second half of 2007. CAS, already the largest of DHL's hubs in the region before expansion, will be fully operational in 2008 with capacity being lifted to about 40 million air shipments per year.
"The throughput handled by the Hub has seen a 20% year on year growth for throughput. The current facility has processed over 150,000 tonnes for 2006, way ahead from what we have estimated for the same year. The strength of cargo movement through Hong Kong validates DHL's foresight in investing in Hong Kong and making a long-term commitment to supporting the development of the city as a conduit of regional trade. We are very excited at the prospect of launching the expanded Central Asia SuperHub 6 years ahead of schedule," said Mr. Price.
"Going forward, DHL will also intensify development of customer-oriented features and services in order to meet the increasingly sophisticated demands of our clients in the region. We believe in fostering long-term partnerships with our customers and see their success as one of the most important factors underpinning our long-term leadership in the market place. It is therefore of paramount importance to us to permeate every aspect of our operation with the two hallmarks that make DHL unique - our personal touch and Can-do attitude."
DHL has recently launched a new branding initiative, "All The Way", highlighting the company's key differentiators, featuring its people and pro-active service-oriented attitude to communicate the company's personal touch in everyday situations. The campaign, already rolled out in key markets including Hong Kong in the first quarter of 2007, aims to reinforce DHL's tagline of going "All The Way" for customers by demonstrating that DHL is committed to playing an integral role in contributing to customers' success.
The campaign showcases unique facets of DHL's quality service experience such as the DHL Quality Control Centers or QCCs, launched in Hong Kong last year, and the award-winning 24-hour customer service centre staffed by DHL employees without assistance from interactive voice response system (IVRS).