DHL Express Inaugurates Upgraded Central Asia Hub in Hong Kong with EUR 562 Million Investment

from left to right: Fred Lam, CEO of Airport Authority Hong Kong; Lam Sai-hung, Secretary for Transport and Logistics of the Government of the Hong Kong Special Administrative; KK Chan, Chief Secretary for Administration of the Government of the Hong Kong Special Administrative; Tobias Meyer, CEO DHL Group; John Pearson, CEO DHL Express; Ken Lee, CEO DHL Express Asia Pacific

(IN BRIEF) DHL Express has unveiled its expanded Central Asia Hub (CAH) in Hong Kong, marking its largest infrastructure investment in the Asia Pacific region to date, totaling EUR 562 million. The CAH is one of three global hubs connecting Asia Pacific with the rest of the world and supports intra-Asia trade. The expansion has increased peak shipment handling capacity by nearly 70%, enabling the hub to handle six times more shipment volume than in 2004 when it was first established. The facility also features advanced technology such as computerized tomography (CT) X-ray scanners and 3,450 solar panels on the roof, promoting sustainability.

(PRESS RELEASE) HONGKONG, 14-Nov-2023 — /EuropaWire/ — Deutsche Post DHL Group (ETR: DPW), a German multinational package delivery and supply chain management company, announces that DHL Express, the world’s leading international express service provider, proudly announces the inauguration of its upgraded Central Asia Hub (CAH) in Hong Kong, representing the company’s most substantial infrastructure investment in the Asia Pacific region to date, amounting to EUR 562 million. Since its establishment in 2004, CAH has undergone significant expansion and enhancements, reinforcing DHL Express’s unwavering commitment to the Asia Pacific’s growth potential and its dedication to positioning Hong Kong as a pivotal global aviation hub.

Supporting Global Trade Growth

John Pearson, CEO of DHL Express, emphasized the importance of global trade and the company’s commitment to supporting customers’ global expansion, stating, “We believe that global trade matters, and it’s here to stay. We have invested more than EUR 1.8 billion into our three global hubs, demonstrating our commitment to support our customers’ growth as they expand globally. CAH is important to our customers in Asia and globally, as it handles close to 20% of DHL Express global shipment volume. While global trade is normalizing following a pandemic boom, our investments today will improve our global and regional network, putting us in an excellent place when global trade recovers.”

Ken Lee, CEO for Asia Pacific, DHL Express, noted the persistent growth in air cargo demand driven by trade between Asia and other regions and cross-border e-commerce. Lee stated, “Asia is home to some of the fastest growing markets in the world. Since it was established in 2004, we have seen a continued increase in air cargo demand driven by trade between Asia and other regions, and cross-border e-commerce. Even as global trade normalizes after the pandemic, we have seen over 30 percent growth in throughput between Asia and other continents in the first three quarters of 2023 when compared with the same period in 2019, far exceeding the pre-Covid level. Additionally, the strategic location of the Hub in Hong Kong opens doors to many opportunities for our customers in this region. We are confident that the expanded CAH will foster interconnectivity and underpin Asia’s status as a powerhouse of global growth.”

Strategic Location and Significance

Located strategically in the heart of Asia, CAH serves as a unique gateway to one of the world’s fastest-growing regions. This expansion complements the launch of the Hong Kong International Airport’s three-runway system, set to be completed by 2024. The enhanced CAH further strengthens Hong Kong’s position as an aviation center and bolsters global trade and commerce.

The Hub’s proximity within a four-hour flight time to major cities in Asia Pacific and the Pan-Pearl River Delta region enhances its significance. DHL Express’s Asia Pacific air network operates on a multi-hub strategy, supported by four hubs – CAH in Hong Kong, North Asia Hub in Shanghai, South Asia Hub in Singapore, and Bangkok Hub, linking to approximately 900 DHL Express facilities in the region. The newly expanded world-class express cargo facility handles over 200 dedicated flights per week, supported by about 690 daily flights through its well-established Asia air network.

Acknowledgment from Key Figures

KK Chan, Chief Secretary for Administration of the Government of the Hong Kong Special Administrative Region, expressed the government’s commitment to developing the air cargo sector towards smart, green, sustainable, and high-value-added development. Chan stated, “We have rolled out the Action Plan on Modern Logistics Development following the policy address delivered by our Chief Executive weeks ago, specifically leading the air cargo sector towards smart, green, sustainable, and high value-added development. As an important partner for attaining these goals, the expansion of DHL’s Central Asia Hub supports our airport’s transformation from a city airport into an ‘Airport City’, to tap into the airport’s increased cargo handling capability. We are also strengthening our role as an air cargo trans-shipment hub for the Guangdong-Hong Kong-Macao Greater Bay Area, one of the world’s largest manufacturing clusters and home to over 86 million potential customers.”

Fred Lam, Chief Executive Officer at Airport Authority Hong Kong (AAHK), highlighted the collaboration between DHL and HKIA in expanding CAH. Lam said, “With a long-term vision to develop Hong Kong International Airport (HKIA) as the e-commerce fulfillment centre of Asia, AAHK has been working closely with DHL to expand its Central Asia Hub – first in 2008, followed by a second expansion in 2017. Today, we are celebrating the completion of the expansion – with enhanced capabilities in handling express and small parcel shipments – that will allow both DHL and HKIA to capitalize on the immense opportunities available in cross-boundary e-commerce.”

Enhanced Efficiency and Sustainability

CAH, being the only dedicated and purpose-built air express cargo facility at Hong Kong International Airport, boasts a 50% increase in total warehouse space to 49,500 sqm and an automated material handling system. This advancement has raised the Hub’s peak handling capacity by almost 70% to 125,000 shipments per hour, with the annual total tonnage management expected to increase by 50% to 1.06 million tons per annum when operating at full capacity. This is a significant six-fold increase from the shipment volume when the Hub was initially established in 2004.

In a commitment to operational efficiency and accuracy, CAH has introduced computerized tomography (CT) X-ray scan technology, doubling inspection speed and enabling the swift and precise detection of suspicious goods. Additionally, the facility has integrated sustainability into its core, with 3,450 solar panels installed on the roof, estimated to generate 1.68 GWh of Photovoltaic (PV) energy annually, equivalent to reducing 850 tons of carbon emissions per annum. Furthermore, CAH is pioneering the use of battery storage in DHL’s Asia Pacific region, storing excess solar power and saving 125,000 kWh of electricity annually while reducing 49 tons of carbon emissions. Other eco-friendly features include electric forklifts, LED lights, and high-efficiency air-cooled chillers, aimed at reducing greenhouse gas emissions.

With these extensive investments and enhancements, DHL Express aims to further fortify its presence in the Asia Pacific region, ensuring seamless and efficient global trade while embracing sustainability and environmental responsibility.

Media contact:

Sabine Hartmann
Spokesperson for DHL Express

DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

SOURCE: Deutsche Post AG