DHL logistics hub now faster, leaner, stronger (hktdc.com)


	Due to demand, DHL's Central Asia Hub expansion in Hong Kong has opened five years ahead of schedule

	The new automated facility has almost halved throughput time

DHL, the world's leading express and logistics company, is set to significantly boost its operational capability in the region with the recent completion of its Central Asia Hub (CAH) expansion in Hong Kong. Based at the Hong Kong International Airport, the US$210 million facility, which officially opened last month, is the first large-scale automated express hub in Asia-Pacific. DHL said rising demand in the region prompted the decision to expand five years ahead of schedule.

"Currently, more than 60 per cent of express cargo processed by the Central Asia Hub is intra-Asia-Pacific shipment, a figure we expect to continue growing alongside rising intra-regional trade,” said Dan McHugh, CEO, DHL Express Asia-Pacific. "Asia-Pacific continues to be a key growth driver. In the first half of 2008, we grew 13 per cent year-on-year. The expansion of the CAH is testament to the continued growth of intra-Asia trade and the Asia-Europe trade lane."

The expansion doubles the capacity of the CAH to 35,000 square metres. Providing the core backbone to further enhance DHL's services in the region, the upgraded facility will handle 40 million shipments this year alone. With the expansion, the automated facility will see a 114 per cent increase in throughput capacity, and a decrease in throughput cycle time from 12 to seven minutes.

Strategic location

"Strategically located within a four-hour flight time to major cities in Asia-Pacific, the CAH is complemented by a well-established Asia Air network, which is served by more than 20 aircraft and about 500 commercial daily flights. The expansion of the CAH brings with it heightened speed, efficiency, accuracy, and significantly bolsters DHL's operational capacity in Asia-Pacific,” said Jerry Hsu, President, Greater China Area, DHL Express.

The Hong Kong Government pledged to continue doing its part. "To support further development of the express cargo industry and the aviation sector in the years ahead, the government is dedicated to improving our airport's links to the nearby markets,” said Hong Kong Secretary for Transport and Housing Eva Cheng. Hong Kong, she added, plans to increase its airport capacity, by possibly building a third runway.

"With CAH fully operational, we look forward to taking our network capability up another notch when our North Asia Hub at Shanghai Pudong International Airport is complete in 2010,” Mr McHugh said. The company said the North Asia Hub in Pudong will complement its Hong Kong facility and will result in transit time improvements across North Asia, benefiting especially customers in the Yangtze River Delta.

"Currently, nearly 50 per cent of the shipments through the Central Asia Hub are destined for China, Japan, Korea and Taiwan,” Mr Hsu noted. "With the expected long-term projections in volume growth, a dedicated North Asia Hub will further enhance operational efficiencies, and enable DHL to keep pace with growth.”