DHL completes Hong Kong hub expansion

DHL Express completed expansion at its central Asia hub in Hong Kong, expanding handling capacity by 70%, the forwarder said in a Nov. 14 release. The expansion is a step toward global recovery in a post-pandemic market as well as boosting intra-Asia trade, the release stated. DHL has invested $610 million into the project, which opened in 2004, the release stated. The latest phase cost $409 million. [caption id="attachment_96052" align="alignright" width="300"] (Photo/DHL Express)[/caption] “Our ongoing investments in our network are driven by our long-term growth expectations,” DHL spokesperson Daniel McGrath told Air Cargo Next . “In the case of Hong Kong, its proximity to China,which will continue to play a major role in global trade, as well as to other markets that are seeing growth as companies diversify their sourcing and production, such as Vietnam, Indonesia [and] Thailand, will drive demand for express shipping services in the future, as well as the continued increase in e-commerce.” The expansion was built in tandem with Hong Kong International Airport’s (HKG) plan for a three-runway system, which is set to be completed in 2024, the release stated. HKG was the busiest cargo airport in the world last year, with a cargo throughput of 4.2 million tonnes , according to Airports Council International . The expanded cargo facility will handle 200 dedicated inbound flights per week, along with a more interconnected Asia network, which sees 690 flights per week, including to locations in Shanghai, Singapore and Bangkok, the release stated. The 533,000-square-foot cargo facility includes automation such as sorting robots, which can handle 125,000 parcels an hour. Hazardous materials will be scanned twice as quickly as before through special X-ray machines. After the facility reaches capacity, DHL expects cargo tonnage to exceed 1 million tonnes per year — six times the facility’s capacity when it opened, the release stated. Strengthening partnerships The facility will also benefit Cathay Pacific subsidiary Hong Kong Air , McGrath said. DHL cargo routinely flies on aircraft operated by Hong Kong Air, among other carriers. “We typically utilize the belly space on a wide array of commercial air carriers out of most hubs, in addition to our dedicated freighter capacity,” McGrath said. “The increased efficiency and throughput the hub will undoubtedly benefit [Hong Kong Air]in terms of increased demand for capacity and a positive impact on their operations.” The central Asia air hub is one of DHL’s three major hubs in the Asia-Pacific region. “We believe that global trade matters, and it’s here to stay,” DHL Express Chief Executive John Pearson said in the release. “We have invested more than1.8 billion euros ($2 billion) into our three global hubs, demonstrating our commitment to support our customers’ growth as they expand globally.”“The Central Asia hub is important to our customers in Asia and globally as it handles close to 20% of DHL Express global shipment volume.” Join Air Cargo Next for the upcoming webinar, “The future of AI in air cargo,” on Tuesday, Dec. 5, at 11 a.m. ET. More information about the webinar and registration is available here .

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