DHL launches HK hub targeting booming mainland market (hktdc.com)


CEO of DHL Express Asia Pacific John Mullen says Hong Kong's superb interconnectivity and central location are just right for its new Central Asia Hub

DHL Express recently launched its US$100 million dedicated Central Asia Hub in Hong Kong, marking a vote of confidence in the city's position as a leading regional Asia Pacific centre and logistics gateway to the Chinese mainland.

Located at the Hong Kong International Airport (HKIA), the state-of-the-art facility will cater to the booming Chinese mainland and Asia-Pacific cargo market. Chief Executive (Asia Pacific) John Mullen said DHL, a unit of Deutsche Post AG, had experienced strong double-digit growth in Asia for the last five years. Key markets include Japan, Hong Kong and Korea with the mainland being the key driver of growth.

"Intra-Asia Pacific cargo volumes now account for close to 50 per cent of DHL Express' revenues in the region and is our fastest growing segment. Recognising the potential of the logistics market in Asia, DHL has been pursuing a growth strategy focusing on capacity building. The construction and operation of the new Central Asia Hub is an extension of this strategy," said Mr Mullen.

Right location, extensive international network of flights


Located in the Hong Kong International Airport, the US$100 million facility is the largest of its kind in the region

DHL's business in China has consistently registered an annualised growth rate of 35-45 per cent over the past few years, surging between 50-60 per cent in the first half of 2004. Over 70 per cent of DHL's China in-and-outbound shipments are routed through Hong Kong.

The Hong Kong hub which is capable of handling 900 tonnes of cargo a day within 10 years, will also be home to the US$400 million fleet of new freighters that DHL bought recently with Cathay Pacific as they set their sights further on the robust mainland cargo market.

Mr Mullen pointed out that Hong Kong being located in the Pearl River Delta is situated nearest the mainland market. It is also the right location to operate a hub as it has an extensive international network of flights.

"Strategically located in Hong Kong which is within a four-hour average flying time to major cities in Asia Pacific, the new Central Asia Hub will significantly increase express shipment throughput capacity in Hong Kong and Southern China, strengthening Hong Kong's position as a leading regional hub and logistics gateway to China," added Mr Mullen.