HKMB Hong Kong Means Business

Hong Kong Means Business Hong Kong Means Business
  • Login / Register

Languages

  • EN
  • 繁
  • 简
  • Events
  • My Feed
  • Contact HKTDC
  • Subscribe
  • Subscribe

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

Languages

  • EN
  • 繁
  • 简
  • HKTDC.com |
  • About HKTDC |
  • My HKTDC |
  • Login / Register |

HKTDC.com About HKTDC My HKTDC

Login Register

Hong Kong Means Business

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

https://hkmb.hktdc.com/en/1X0AD7C3

venture hong kong
SAVE FOR LATER
SHARE / SEND

"Scan QR Code" in WeChat and tap "..." to share.

DHL Builds for Growth

The global logistics company is again expanding its Hong Kong-based Central Asian operations ahead of an expected surge in regional demand.

08 March 2018


Ken Allen, Global CEO of DHL Express (right) and Fred Lam
Ken Allen, Global CEO of DHL Express (right) and Fred Lam, CEO of Airport Authority Hong Kong, sign an agreement at the DHL Central Asia Hub located at the Hong Kong International Airport

Double-digit annual growth underpinning even brighter prospects ahead has given DHL Express, the world’s leading international express services provider, the confidence to vastly expand its Central Asia Hub at the Hong Kong International Airport.

The HK$2.9 billion expansion, in partnership with the Airport Authority Hong Kong, brings DHL’s commitment for this strategic hub to approximately HK$4.5 billion.

As one of the company’s three global hubs, handling more than 40 per cent of its total Asia-Pacific shipment volumes, the Hong Kong facility has recorded an average 12 per cent year-on-year growth in the past decade.

Ken Allen, CEO of DHL Express, said that with an expected 50 per cent increase in annual throughput, the expanded Central Asia Hub will further boost the company’s global multi-hub strategy.

“Given the expected rise in international e-commerce and intra-Asian trade, DHL is committed to strengthening our global network and services,” said Mr Allen. “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.”

Improved Efficiency

Ken Lee
Ken Lee, CEO of DHL Express Asia Pacific

The expanded hub will be equipped with an enhanced material- handling system that will improve productivity and increase its throughput capacity – from the current 75,000 pieces of shipments per hour to 125,000 pieces per hour. When operating at full capacity, the annual throughput of the expanded hub is expected to rise by 50 per cent to 1.06 million tonnes per annum.

As a dedicated and purpose-built air-express cargo facility at the Hong Kong International Airport, the upgraded hub can handle six times more in terms of shipment volume than when it was first established in 2004.

Ken Lee, CEO of DHL Express Asia Pacific, said that connecting with more than 70 DHL Express gateways in the region, the expanded Central Asia Hub will help the company capitalise on growth in intra-Asian trade.

“The trade flows between Hong Kong and Asian markets have been robust,” he said. “Indeed, if we benchmark the cargo volume of 2017 against 1998 of the Hong Kong International Airport, it grew drastically from 1.63 million tonnes to 4.94 million tonnes.”

“Our business in Hong Kong has also benefitted from the booming e-commerce sector, which is the key growth driver of our business.”

Business Benefits

DHL Express Hong Kong’s business has also seen continuous growth in the past few years, reaffirming the company’s strategic focus on its international express services, Mr Lee continued. “Our business in Hong Kong has also benefitted from the booming e-commerce sector, which is the key growth driver of our business.”

As part of the company’s region-wide infrastructure, the Central Asia Hub in Hong Kong allows for a later cut-off time for shippers, enabling them to meet their customers’ critical, last-minute needs.

“We also launched a service centre in Tsing Yi in 2016, representing a total investment of nearly HK$78 million, to cater to the surging logistics demands and shipment volume through Hong Kong,” Mr Lee noted. “On service offerings, we have launched our On Demand Delivery in Hong Kong to allowing shippers and receivers around the world to select from a range of standardised delivery options.”

Key Regional Market

DHL has long seen Hong Kong as a key market in the Asia-Pacific region, with its robust logistics infrastructure, and geographical advantage to reach major Asian destinations within four hours of flying time, Mr Lee continued.

“This is crucial for the express industry as it helps us to fulfill the time-definite needs of our customers. Hong Kong has the best-in-class air connectivity, thanks to the Hong Kong International Airport, which supports the development and surging demand of the air cargo industry.”

In addition to international connections, Hong Kong also enjoys its proximity to the Pan-Pearl River Delta region (PPRD), which benefits cross-border trade, he said.

“Its infrastructure is highly developed, its legal system is considered one of the most transparent in Asia, and its compliance processes are considered extremely business-friendly,” Mr Lee said. “The city’s low tax environmesnt, efficient customs clearance and connectivity serve as unique advantages to us.”

These advantages also make Hong Kong an ideal sourcing hub and distribution centre for businesses in the region, especially for high-value products, including fashion and consumer electronics that need to minimise inventory and catch product trends, through Hong Kong’s highly efficient air network.

The expanded Central Asia Hub is expected to begin operations in the first quarter of 2022, in time to capture strong demand in the PPRD region, and for the completion of the three-runway system at the Hong Kong International Airport in 2024.

Related Link
DHL Express

BACK TO TOP ^
CONTENT PROVIDED BY
    Topics:
  • Logistics & Supply Chain,
  • Hong Kong,
  • e-commerce,
  • Case Studies,
  • logistics,
  • dhl,
  • delivery,
  • hong kong international airport
  • Logistics & Supply Chain
  • Hong Kong
Home

Article Topics

ARTICLE TOPICS

LOGISTICS...24709
HONG KONG36026
E-COMMERCE72199
CASE STUDIES132157
LOGISTICS81041

ARTICLE TOPICS

LOGISTICS & SUPPLY CHAIN24709
HONG KONG36026
E-COMMERCE72199
CASE STUDIES132157
LOGISTICS81041
DHL85578
DELIVERY81036
HONG KONG INTERNATIONAL AIRPORT85930

interest_article

YOU MAY BE INTERESTED IN

13 June 2022

Planting a good idea

01 December 2021

Post-Covid Prospects: Sweden

26 November 2021

Diversity and Connectivity: What You Need to Know about Greater Bay Area

24 November 2021

Central Asia’s Giant Greenfield Market

Related Events

RELATED EVENTS

5 - 8 September 2022

Hong Kong Pavilion at FHA–Food & Beverage, Singapore

9 - 11 November 2022

HKTDC Hong Kong International Medical and Healthcare Fair 2022

7 - 10 December 2022

Marintec China 2022 – HK Pavilion

14 - 17 December 2022

Eco Expo Asia 2022
FIND AN EVENT

Social Share

FOLLOW US

GET WEEKLY UPDATES

newpaper-img

GET OUR WEEKLY EMAIL UPDATES

banner-img


I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement; I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.


*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.

THANK YOU

Thank you for registering.

SHARE THIS STORY

EMAIL
LINKEDIN
WeChat
FACEBOOK
TWITTER
WHATSAPP

ID: HKTDCofficial

Don't have an account?

Create An Account

successfully added on your preferences.