DHL Express is to expand its Central Asia Hub at Hong Kong International Airport in an €335 million (US$3.97 million) investment which will take the facility’s throughput to over 1 million tonnes per year.

According to Tony Khan, general manager of the Central Asia Hub at DHL Aviation Hong Kong, the new expansion will feature a second building which is adjacent and connected to the existing facility via a bridge, with shipments travelling on the top level and people on the bottom.

“All the automation and equipment will be there to maximize our throughput of this facility,” said Khan.

DHL’s warehouse space will increase by 8,000 square metres to 47,000 square metres. Once the expansion is completed, the facility will be able to handle a total of 1.06 million tonnes every year and 125,000 shipments per hour.

“Given the expected rise in international e-commerce and intra-Asian trade, DHL is committed to strengthening our global network and services,” said Ken Allen [right in photo], CEO of DHL Express. “Based in a strategically important location to DHL, the expanded Central Asia Hub in Hong Kong will not only bolster our operational capacity in Asia Pacific, but also facilitate the rapidly growing international trade demands in the region and around the world.”

Construction of the new facility is targeted to begin towards the end of 2018 or the beginning of 2019, with completion and launch of operations expected in the first quarter of 2022, to coincide with the launch of Hong Kong International Airport’s three-runway system.

“We would like this place to open tomorrow morning if possible, but I know it’s going to be difficult,” Allen said. “We’re ready and we’ve got great relationships.”

DHL’s Central Asia Hub in Hong Kong connects to more than 70 DHL Express gateways in the region and is one of three global hubs, along with Leipzig and Cincinnati. Within the Asia-Pacific region, DHL also has hubs in Bangkok, Shanghai and Singapore.

“The expansion will also help us capitalize on the growth in intra-Asian trade that currently contributes over 40% of our revenue in Asia Pacific,” said Ken Lee, CEO of DHL Express Asia Pacific. “Equipped with fully automated X-ray inspection machines, it will increase the speed of our shipment inspection by three times – enabling us to significantly expedite the processing speed of shipments that come through the CAH.”

Lee added that DHL would continue to constantly invest in the Central Asia Hub to improve its capability and operational efficiency.

“As we do so, our customers can expect faster, more reliable and more versatile shipping than ever before,” he said. “We’re confident that the Central Asia Hub will further strengthen DHL’s network capabilities in Hong Kong and the region and I look forward to what it will deliver to DHL and especially our customers.”