DHL opens its biggest Asian hub in Shanghai

The world’s leading postal and logistics group Deutsche Post DHL plans to invest US$132 million (Bt4.1 billion) to add eight dedicated aircraft over the next two years after launching its $175-million North Asia Hub, the biggest express hub in Asia.

Opening the North Asia Hub in Shanghai will bring DHL to another stage of its express network platform, spanning its express business from the South up to the North, with its central global hub based in Hong Kong and the South Asia Hub based in Singapore and Thailand.

Together, DHL Express’ four hubs in the Asia-Pacific – Shanghai, Hong Kong, Bangkok and Singapore – will have more than 70 DHL Express Gateways located throughout the region.

The DHL Express North Asia Hub occupies 55,000 square metres of operational floor space and can process up to 20,000 documents and 20,000 parcels an hour. It is located at Shanghai Pudong International Airport. It has 60km conveyors of sorters with 20 X-ray machines and the capability to handle 50 truck docks.

Not only will the new hub help connect North Asia to the US, but also to Japan and Korea, increasing the capacity of trans-shipment.

"Opening the new hub today shows how we are confident in the development in China...and this reinforces our commitment to the logistics business," said CEO Frank Appel.

DHL yesterday also announced its plan to invest $132 million to add eight aircraft to service high demand routes between Shanghai and North Asia, Europe and the US by 2014.

Jerry K Hsu, CEO of DHL Express Asia Pacific, said that DHL plans to further develop more network around the North Asia Hub. Over the next few months, it will add direct flight connections to Incheon, Taipei and Chinese cities such as Dalian and Qingdao with Beijing and Xiamen likely to come on stream in 2013. More direct intercontinental sectors will be added to connect to Europe and US as well as more direct flights connecting other Asia-Pacific countries to the North Asia Hub.

However, Appel is optimistic that the global economy will grow 3.5 per cent this year despite the impact of the euro-zone debt crisis. Regarding his views on the financial crisis, he said even if demand for shipments were relatively low, customers want on-time delivery.

DHL’s infrastructural network is served by an air network of more than 40 aircraft covering 40 countries and territories and utilising about 690 commercial flights per day.

According to MI Study 2012, DHL is the market leader in the global time definite international express market, representing 32 per cent, followed by FedEx 27 per cent, UPS 21 per cent, TNT 7 per cent and others 13 per cent. The global market size is about 21.98 billion (Bt854 million).