DHL announces HK$2.9 billion expansion for Central Asia Hub
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DHL Express has announced that it will launch an approximate HK$2.9 billion expansion plan for its Central Asia Hub (CAH), in partnership with Airport Authority Hong Kong. This multi-year expansion brings DHL’s commitment for this strategic hub to approximately HK$4.5 billion.
The expansion follows the CAHs record of an average 12% year-on-year growth in its shipping volume in the past decade. As one of three global hubs for DHL, the expanded CAH will continue to act as the core hub of the DHL Express global and Asia Pacific regional network, handling more than 40% of its total Asia Pacific shipment volumes.
It is expected to begin operations in Q1 2022, in time to capture strong demand in the Pan-Pearl River Delta (PPRD) region and completion of the Three Runway System for the Hong Kong International Airport in 2024.
Ken Allen, CEO of DHL Express, said that given the expected rise in international e-commerce and intra-Asian trade, the company looks to strengthen its global network and services.
The CAH thus plays a key role in DHL’s strategy to strengthen its existing network of hubs in Asia Pacific, including Shanghai, Singapore and Bangkok.
“Based in a strategically important location to DHL, the expanded Central Asia Hub in Hong Kong will not only bolster our operational capacity in Asia Pacific, but also facilitate the rapidly-growing international trade demands in the region and around the world,” he said.
The expanded CAH will be equipped with an enhanced material handling system that will improve productivity and increase the hub’s throughput capacity from the current 75,000 pieces of shipments per hour to 125,000 pieces per hour.
Questions & Answers
Q.What is the total investment DHL will have made in the Central Asia Hub following this expansion?
What is the total investment DHL will have made in the Central Asia Hub following this expansion?
This expansion brings DHL's total commitment for the Central Asia Hub to approximately HK$4.5 billion. The current expansion alone is approximate HK$2.9 billion.
Q.What is the expected increase in the Central Asia Hub's shipment processing capacity after the expansion?
What is the expected increase in the Central Asia Hub's shipment processing capacity after the expansion?
The expanded hub's throughput capacity will increase from the current 75,000 pieces of shipments per hour to 125,000 pieces per hour, an increase of 50,000 pieces hourly.
Q.When is the expanded Central Asia Hub expected to become operational?
When is the expanded Central Asia Hub expected to become operational?
The expanded Central Asia Hub is expected to begin operations in the first quarter of 2022. This timing aims to meet strong demand in the Pan-Pearl River Delta region.