DHL Express invests S$140 million in South Asia Hub, supporting trade across Southeast Asia
• Singapore facility to provide logistics capabilities to stimulate tradeand commerce growth across Southeast Asia
• Fully automated express packages sorting and processing system will increase throughput by 3 times and processing speed by 6 times Singapore,
5 March 2015 – DHL Express, the world’s leading international express services provider, 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, in line with DHL Express’ global investments to bolster our network connectivity, boasts a total investment of S$140 million (€85 million), the largest infrastructural amount invested by DHL Express in Singapore, to better support regional businesses operating in and out of Singapore.
Speaking at the unveiling event, Mr 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 square meters and a total floor area of 23,600 square Deutsche Post DHL The Mail & Logistics Group 2/4 meters, 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 CAC, 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
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 almost 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.” Besides support in the areas of infrastructure and connectivity, CAG has also actively assisted
its cargo partners such as DHL Express through innovative and proactive measures to provide cost relief over the past years, such as landing fee rebates for scheduled freighter services.
“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,” said Mr Herbert Vongpusanachai, Senior Vice President & Deutsche Post DHL The Mail & Logistics Group 3/4 Managing Director, DHL Express Singapore. “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.”
The latest investment comes on top of a series of development plans activated by DHL in the region, including the North Asia Hub at the Shanghai Pudong International Airport along with
eight dedicated aircraft to service high demand routes; a new purpose-built gateway facility in Brisbane driven by double-digit growth; and a new gateway in Tokyo slated for completion in
2016 to accommodate further growth.
Singapore has always been at the heart of DHL’s network in Southeast Asia and South Asia. Leveraging the island-nation’s strategic location, DHL’s current facility is responsible for
consolidating and distributing shipments to these regions. It is also a vital springboard to other continents as shipments from Singapore can reach Germany via flights through India while
those going to Oceania can connect through Australia. 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 position.
“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.”
Construction of DHL South Asia Hub is expected to be completed by the first quarter of 2016.
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Claire Ho Lim Choon Hong / Irene Teoh
DHL Express Text 100 Singapore
DID: +65 6880 62102 DID: +65 6603 9000
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