DHL Express unveils US$410 million expansion of Hong Kong hub, bets on city’s international logistics centre status and new three-runway system
- Total warehouse space at Central Asia Hub, one of DHL’s three global hubs and its only such facility in Asia-Pacific, has increased to 49,500 square metres from 31,400 square metres in 2019
- Expansion not only for Hong Kong but for ‘anybody who wants to do business with China’, DHL Express Asia-Pacific CEO says
Total warehouse space at Central Asia Hub, one of DHL’s three global hubs and its only such facility in the Asia-Pacific region, has increased to 49,500 square metres from 31,400 square metres in 2019 under a third expansion phase, the logistics company said on Tuesday.
The expansion was initiated to complement the launch of Hong Kong airport’s three-runway system, which is expected to be completed next year.
“The expanded Central Asia Hub will further underscore Hong Kong’s role as an aviation centre, as it facilitates global trade and commerce,” DHL Express said. The company – a subsidiary of DHL Group that only deals with international shipping – has now invested a total of HK$4.9 billion in its Hong Kong hub since 2004, making it DHL Express’s largest infrastructure investment in Asia-Pacific, the company added.
The hub’s peak handling capacity has also increased, by almost 70 per cent to 125,000 shipments per hour. At its full capacity, the hub can handle six times more shipment volume than when it was first established in 2004, DHL Express said.
The expanded hub is sure to support Hong Kong airport’s transformation from a city airport into an “airport city”, Chief Secretary for Administration Eric Chan Kwok-ki said during the unveiling on Tuesday.
“With our three-runway system scheduled for completion next year, it will be well positioned to tap into the airport’s increased cargo handling capability.”
Upon the full opening of its three-runway system, Hong Kong’s airport is expected to reach a target of handling 10 million tonnes of cargo a year by 2035, more than double that of last year, Chan said.
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“We are also strengthening our role as an air cargo transshipment hub for the Guangdong-Hong Kong-Macau Greater Bay Area, one of the world’s largest manufacturing clusters and home to over 86 million potential customers,” he added.
“Central Asia Hub is important to our customers in Asia and globally, as it handles close to 20 per cent of DHL Express’s global shipment volume,” said John Pearson, CEO at DHL Express.
The company recorded more than 30 per cent growth in throughput between Asia and other regions in the first three quarters of 2023, when compared with the same period in 2019, far exceeding pre-Covid-19 levels.
“Today’s expansion in Hong Kong is not only for Hong Kong but for anybody who wants to do business with China, including Hong Kong,” said Ken Lee, CEO at DHL Express Asia-Pacific.
In 2021, DHL Express captured 57 per cent of the logistics market in mainland China and 50 per cent in Hong Kong, the company said. Its presence in Asia-Pacific reached €13.9 billion (US$14.9 billion), accounting for 57 per cent of the region.
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“We have a very healthy and growing business in the Greater Bay Area,” Meyer said. “We also welcome any measures to ease the trade within the Greater Bay Area to leverage the strength of Hong Kong airport as the world’s busiest cargo force for exporters in southern China as well.
“[Hong Kong] is complemented by the strength that southern China has, as a manufacturing location, and the dynamic can continue to benefit Hong Kong.”
