DHL Express has signed a concession agreement with the Incheon International Airport Corporation to implement a €131 million (US$144 million) expansion plan at South Korea's main gateway.
The multi-year investment, DHL's largest in South Korea to date, is expected to address the growing demand in regional e-commerce trade and further support demand growth up to 2032.
Rising shipment volume at Incheon Airport
DHL said since the opening of its facility at the Incheon International Airport in 2008, DHL Express has seen a growth of over 45% in shipment volume, indicative of the growing role of the gateway in global and intra-regional trade.
“Our Incheon Gateway occupies a vital strategic position along key routes between South Korea and countries like Singapore, Taiwan, Hong Kong and China – all of which are amongst our top ten inbound and outbound markets by express delivery volume. With online retail sales in Asia Pacific expected to reach US$2.5 trillion1 by 2023, our latest investments in the Incheon Gateway will align our infrastructure to what Asia’s e-commerce generation needs for now and tomorrow,” said Ken Lee, CEO, DHL Express Asia Pacific.
The expansion plan will widen DHL's facility to a gross floor area of 58,700 square meters from the current 20,000 square meters – an increase of almost 200%.
It will also be equipped with the latest technology for faster, more secure and efficient delivery handling processes and covers technical upgrades including fully-automated X-ray inspection machines, a four-kilometre conveyor belt, automated sorters, magnetic speed controllers and full CCTV coverage.
DHL said the new technology will increase the Incheon gateway’s total handling volume of parcels and documents by almost 160% – equipping it to service demand from some of the region’s fastest-growing economies.
South Korea to be the world's 3rd largest e-commerce market
“With one of the world’s highest rates of online shopping, and its trajectory to become the world’s third-largest e-commerce market after China and the United States by 2023, this Gateway expansion will create the foundation for e-commerce businesses to expand both locally and across the Asia Pacific region,” said ByungKoo Han, Country Manager of DHL Express Korea.
When completed in Q2 2022, the Incheon gateway will be DHL Express’s largest gateway in Asia Pacific.
DHL said aligned with its mission of net-zero logistics-related carbon emissions by 2050, the facility will also incorporate a range of ‘green’ features such as the use of solar power and energy-efficient lighting systems to achieve CO2 reduction of up to 1,500 tons per year.
