DHL Express announced today a further $35 million investment in Hong Kong to capitalise oncontinued growth in the region’s trade.
The Deutsche Post subsidiary is opening a new facility in South Kowloon, its third in HongKong, enhancing ground capacity by 20%, and relocating 800 employees to a new 120,000 sq footoffice “to strengthen operational synergy”.
The Kowloon South Service Centre will be ready in Q2 of this year and the office move is totake place by the end of the year, DHL said.
DHL’s investment in Hong Kong now stands at $645 million, which includes the new $210 millioncentral Asia super hub and $400 million investment in its Air Hong Kong joint venture with CathayPacific
“DHL Express Hong Kong ended 2006 with double-digit growth, clearly benefiting from thestrength of China’s growth and the dynamism of other economies in the region,” said Scott Price,CEO of DHL Express Asia Pacific.
“This is the fifth consecutive year that DHL has recorded double-digit growth in Hong Kong.The investment program brings us close to US$1 billion in our commitment to the Greater China area– to position us for the opportunities which abound in this region.”
With the opening of the new Kowloon facility, DHL’s ground handling capacity will rise to45,500 shipments per day.
DHL’s air express cargo handling capacity will be significantly increased when the centralAsia super hub at Hong Kong International Airport is completed in the second half of 2007. Alreadythe largest of DHL’s hubs in the region before expansion, it will be fully operational in 2008 withcapacity increasing to 40 million air shipments per year.
“The throughput handled by the hub has seen 20% year-on-year growth,” said Price. “Thecurrent facility has processed over 150,000 tonnes for 2006, way ahead from what we have estimatedfor the same year.”
