DHL Express South Asia Hub
DHL Express invests S$140 million in South Asia Hub at Singapore Changi Airport, supporting growing trade across Southeast Asia
Fully automated express packages sorting and processing system will increase throughput by 3 times and processing speed by 6 times
On 5 March 2015, DHL Express unveiled the blueprint of DHL Express South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Center (CAC) at Singapore Changi Airport. The new facility 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.
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. Occupying a land area of 26,200 square meters and a total floor area of 23,600 square 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.
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.” With over 4,000 weekly flights linking Changi Airport to 100 cities in the regions that DHL SAH will serve, the strong connectivity strengthens DHL Express’ ability to better serve the region. The projected increase in volumes will in turn provide growth opportunities for airlines operating at Changi Airport in the years ahead.
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 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.”
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.
Construction of DHL South Asia Hub is expected to be completed by the first quarter of 2016.
