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DHL Express launches USD175m North Asia hub, plans to invest further USD132m

13-Jul-2012 8:54 AM

DHL opened (12-Jul-2012) its largest express hub in Asia – the USD175 million DHL Express North Asia Hub at Shanghai Pudong International Airport – on 12-Jul-2012. The company also announced plans to further invest USD132 million to add eight dedicated aircraft to service high demand routes between Shanghai and North Asia, Europe and the US, by 2014. Details include:

  • New hub: Covering a land area of 88,000sqm, DHL Express’ North Asia Hub can process up to 20,000 documents and 20,000 parcels an hour;
  • Asia network: The completion of the North Asia Hub is part of efforts by the company to build its 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 network is served by an air network of over 40 aircraft covering 40 countries and territories, and utilising approximately 690 commercial flights per day in Asia Pacific;
  • Planned investment: Over the next two years, DHL’s planned investment of USD132 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 services 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. It will build 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, and enhance capacity on these routes and also include new connections between Shanghai to East Midlands;
  • Asia network growth: 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’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. [more - original PR]

DHL Express: “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 centers 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," Ken Allen, Global CEO. Source: Company statement, 12-Jul-2012.

DHL Express Asia Pacific: “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. DHL’s latest NAH 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,” Jerry Hsu, CEO. Source: Company statement, 12-Jul-2012.