DHL Express announced today it has doubled capacity on its vital Singapore – Hong Kong route withthe introduction of a Boeing 747-400 freighter operated by Air Hong Kong, its joint venture with
Cathay Pacific. The move reflects DHL’s continued investment in the region and is in strongcontrast to capacity cuts in integrator air networks in other parts of the world.The B747-400F, with capacity for 110 tonnes of freight, replaces the current 45-tonnecapacity A300-600F, and will operate between both cities six days a week, more than doublingcapacity on the SIN-HKG route, a vital link for Intra-Asia trade, DHL Express Asia Pacific said.The A300-600 freighter, in turn, will replace smaller planes on other Asian routes.
The addition of the Boeing 747-400F service comes on the back of increased air capacity forflights between Hong Kong and Nagoya, Taipei, Seoul and Singapore. Operated by Air Hong Kong, theseflights were increased in the fourth quarter of 2008 to six times per week, up from five times aweek, representing a 20 per cent increase in capacity for each of these four cities.
“DHL’s intra-Asia air Express freight business has grown over 11% year-on-year between 2003and 2008, with shipments along the Singapore – Hong Kong route comprising 30% of total intra-Asiashipment volume,” said Dan McHugh, CEO, DHL Express Asia Pacific. “Adding the biggest freighteraircraft in service, the Boeing 747-400F, to our Express air network on our Singapore-Hong Kongroute is a clear signal of our continued commitment to growth in Asia. Our core Asia Air Network iswell-utilised and well-positioned for the economic recovery. DHL is the undisputed Express marketleader in Asia Pacific. Since 2000, DHL has invested over US$2.2 billion across Asia Pacific and wewill continue to invest ahead of the curve,” he emphasised.
The growth of Intra-Asia volumes has also outpaced the growth on other trade lanes.Intra-Asia volumes from Hong Kong grew an average of 16% year-on-year between 2003 and 2008, ascompared to a 3% annual growth on other trade lanes. Similarly, in Singapore, DHL’s Intra-Asiavolumes grew an average of 5% per annum between 2003 and 2008, as compared to an average of 4%growth on non-Intra-Asia trade lanes.
This upgrade further bolsters DHL’s Asia Express Air Network, which includes more than 20aircraft covering 30 destinations. “We are optimistic about the opportunities that Asia presentsand will continue to invest in this region. With the addition of the Boeing 747-400F, the existingA300-600F will replace some of the smaller aircraft within the network, thus greatly increasing ourcapacity and network capability and, in turn, enhance our service offering for customers. Inaddition to the dedicated aircraft, DHL is utilising over 500 commercial flights per day in AsiaPacific,” said Tom Murphy, Senior Vice President, Aviation, DHL Express Asia Pacific. “DHL’s airnetwork allows major Asia Pacific cities and other business centres to be interconnected throughDHL’s regional hubs and gateways, providing customers with overnight services across the region.”
“The Boeing 747-400F service will link DHL’s Central Asia Hub in Hong Kong, and the DHLExpress Singapore Hub, two vital hubs which service the robust Intra-Asia trade lane whichconstitutes over 50% of DHL’s Asia volumes,” said Stephen Fenwick, Senior Vice President,Operations, DHL Express Asia Pacific. “DHL’s network of hubs and gateways in Asia Pacific are wellcomplemented by a well-established Asia Air Network. These form twin pillars of our highlyefficient operational backbone in the region.”
DHL’s US$210 million Central Asia Hub situated at the Hong Kong International Airport is thefirst large-scale automated Express hub in Asia Pacific. The 35,000 sqm facility highly automatedfacility handled some 30 million shipments in 2008 and is a central hub for shipments from acrossAsia Pacific. The DHL Express Singapore Hub was purchased from the Singapore Airport TerminalServices (SATS) for S$38 million in 2008, after having been leased since 2001. The 18,000 sqmfacility is the single largest air express transshipment facility in Changi Airport, more thantwice the size of any air express transshipment center in the vicinity. The DHL Express SingaporeHub is a key hub for DHL’s shipments especially from Southeast Asia, Australia and New Zealand.
The latest addition of the Boeing 747-400F caps a series of recent investments in DHL’s hubsand gateways in the region. Last week, DHL inaugurated two new gateways in North Asia to a tune ofover US$56 million: the US$50 million state-of-the-art DHL Express Incheon Gateway in South Koreaand the brand new DHL Taipei Gateway at Taoyuan International Airport, Taiwan.
