03/05/2015, 03:00 PM CET

DHL Express invests EUR 85 million in South Asia Hub, supporting trade across Southeast Asia

Scheduled to be operational by the first quarter of 2016, the hub will further support regional businesses operating in and out of Singapore.

The DHL Express South Asia Hub is a 24-hour express hub facility located within Changi Airfreight Center at Singapore Changi Airport.

  • Singapore facility to provide logistics capabilities to stimulate trade and commerce growth across Southeast Asia
  • Fully automated express package sorting system will triple throughput and increase processing speed at key regional hub

Singapore - DHL Express today 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 is being built in line with the ongoing investment program in the DHL Express global network. With a total investment of EUR 85 million and scheduled to be operational by the first quarter of 2016, the hub will further support regional businesses operating in and out of 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."

Occupying a land area of approximately 26,000 square meters and a total floor area of over 23,500 square meters, DHL Express South Asia Hub features DHL's first fully automated express parcel sorting and processing system in Singapore and South Asia. Upon its planned completion in the first quarter of 2016, the facility will be able to handle a cargo throughput of more than 628 tons per day when at full capacity and to process 14,000 shipments per hour, compared to 225 tons per day and 2,400 shipments per hour at the current facility.

Reinforcing DHL's multi-hub strategy

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.

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. DHL Express has been working with Changi Airport Group (CAG) on its expansion plans since 2013, and the South Asia Hub will be based in a 24-hour Free Trade Zone at the airport managed by CAG.

Mr. Yam Kum Weng, Executive Vice President, Air Hub & Development, Changi Airport Group, said: "CAG is delighted that DHL Express has chosen Singapore as its preferred location for its South Asia Hub which further anchors Changi Airport's position as a key cargo and logistics hub in Asia. The new facility, which has improved capabilities and three times more capacity than that of DHL's existing facility, allows air express parcels to be shipped or transshipped within an hour. CAG will build on our collaborative partnership with DHL Express to see to the successful completion of DHL Express' South Asia Hub."

Mr Herbert Vongpusanachai, Senior Vice President & Managing Director, DHL Express Singapore, said: "DHL has pioneered the logistics sector in Singapore for over 42 years, building market leadership through innovation, service excellence and commitment. The South Asia Hub is a strong statement of DHL's long-term growth plan for Singapore to continue to be one of DHL's strategic air cargo hubs in Asia. The facility is designed with the vision to deliver top-notch productivity and operational efficiency to benefit our customers with improved speed, reliability and flexibility. With the widened global network and increased flight frequency, we will be able to offer businesses faster access to international markets."

Singapore: At the heart of DHL's network

Singapore has always been at the heart of DHL's network in Southeast Asia and South Asia. 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 geographical location.

"DHL's decision to locate its South Asia Hub here will help strengthen Singapore's position as a leading logistics hub and a practice-leader in automation," said Mr Lee Eng Keat, Director for Logistics, Singapore Economic Development Board.  "DHL has continually pursued operational excellence and productivity enhancement in its Singapore operations, and this investment marks yet another significant milestone in the partnership between DHL and Singapore."

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.