Logistics milestone for region as DHL Express launches $175 m North Asia Hub

• Customers to benefit from faster access to international markets with  shorter transit times and earlier delivery savings by up to one day
• Plans to invest a further US$132 million to add eight dedicated aircraft to service high demand routes between Shanghai and North Asia, Europe and the US over the next two years
• Facility built with environmentally-friendly features including energy efficient lighting and solar-powered system for hot water

DHL, the world’s leading logistics company, has recently opened its biggest express hub in Asia – the US$175 million DHL Express North Asia Hub at the Shanghai Pudong International Airport.

The company also announced plans to further invest US$132 million to add eight dedicated aircraft to service high demand routes between Shanghai and North Asia, Europe and the US, by 2014.

Deutsche Post DHL CEO Dr. Frank Appel said, “DHL Express North Asia Hub is a logistics milestone in DHL’s Asia Pacific network and the culmination of a multi-hub and aviation strategy that cements our leadership position in terms of connections, convenience and cost-effectiveness. With Asia’s leading economies fast integrating and free trade agreements reducing barriers to international commerce, logistics companies need capabilities that are ahead of the curve and offer simplicity, speed and service.”

Covering a land area of 88,000 square meters (roughly equivalent to 13 football pitches), DHL Express’ North Asia Hub can process up to 20,000 documents and 20,000 parcels an hour. The facility has outstanding environmentally-friendly features, such as energy efficient T5 lighting and a solar-powered system for hot water. The hub’s sortation system is designed to automatically detect components that are not in use and switches them to an energy-saving ‘sleep’ mode until they are needed again.

The completion of the North Asia hub caps an unrivalled multi-hub Asian network. Together, DHL Express’ four hubs in Asia Pacific – Shanghai, Hong Kong, Bangkok and Singapore – link to over 70 DHL Express Gateways located throughout the region. DHL’s infrastructural network is served by a comprehensive air network of over 40 aircraft covering 40 countries and territories, and utilising approximately 690 commercial flights per day in Asia Pacific.

Shanghai Airport Authority President Li Derun said, “With the launch of the DHL Express North Asia Hub, the turnover capacity and throughput of Shanghai Pudong International Airport will be further enhanced. Today’s ceremony marks a step forward for Shanghai’s air cargo hub and also opens a new chapter of collaboration between the Shanghai Airport Authority and DHL. The Shanghai Airport Authority will continue to optimise the operating environment for our partners and work together to enhance the core competitiveness of Pudong International Airport.”

Over the next two years, DHL’s planned investment of US$132 million (€100 million) will increase the dedicated capacity of its Asia Air Network by deploying eight freighter aircraft between Shanghai and North Asia, Europe and the US. The planned flights will be operated by partner and equity-held airlines: Polar Air, Aerologic, and DHL Air UK. There will be a variety of other providers as well.

Building on existing direct connections between the DHL Express North Asia Hub in Shanghai to Hong Kong, Osaka, Tokyo, and DHL’s global hubs in Leipzig and Cincinnati, the planned investments in the next two years will enhance capacity on these routes and also include new connections between Shanghai to East Midlands, UK.

DHL further plans to increase capacity on routes between the DHL Express North Asia Hub and other cities in China and Taiwan. Over the next few months, DHL will add direct connections to Incheon, Taipei and Chinese cities such as Dalian and Qingdao, with Beijing and Xiamen likely to come on stream in 2013.

DHL Express CEO Ken Allen said, “DHL pioneered Express services in the region 40 years ago, and was the first international express company to enter China 32 years ago. Shanghai is one of the key commercial centres of China and gateway to the Yangtze River Delta which accounts for almost 39%  of China’s total value of imports and exports. The DHL Express North Asia Hub will play a critical role by supporting growth, improving transit times and network reliability, and providing a foundation for later pick-ups and earlier deliveries for customers across North Asia.”

“Leveraging increased regional and international flight connections through Shanghai, DHL will be able to provide greater flexibility and reliability to customers choosing time-definite morning delivery to major cities in North Asia and greater regional connections across North Asia as well as intercontinental links to Europe and the US, “said DHL Express Asia Pacific CEO Jerry Hsu.

“DHL’s latest North Asia Hub launch and upcoming planned flight investments follows from continuous enhancement in its Asia Air network. In 2011, DHL added two B747 freighters operated by Polar Air to serve Japan, Korea, and Eastern China. We also upgraded our capacity on the Beijing to Hong Kong route with new Airbus freighter services, and improved the Shanghai to Hong Kong route with a new B747 freighter service. In support of China’s ‘Go West’ growth strategy, DHL Express also launched five flights per week between Hong Kong and Chengdu,” he added.

DHL’s extensive network provides businesses with faster access to international markets. Complementing DHL’s Central Asia Hub in Hong Kong, the North Asia Hub enables shorter routing options for customers shipping within North Asia, which could ultimately result in savings of up to four hours airtime, later pick-ups and earlier deliveries.