DHL Express has invested over €10 million in its Asian operations with the opening of anexpanded gateway in Penang, Malaysia, and a new facility in Ho Chi Minh City, Vietnam, serving as
the company’s country office and southern service centre.In Malaysia, DHL invested RM10 million (€ 2.4 million) in its Penang gateway doubling the sizeof the previous facility to 4,000 sqm, which makes it the biggest express gateway in thecountry.
The move is part of the company’s RM16 million (€3.9 million) investment in Malaysia announcedearlier this year to upgrade its facilities and extend its network in the country in response togrowing logistics demand. The remaining investment includes three additional service points. DHLExpress currently counts 89 service points nationwide, five of which are located in Penang.
The newly expanded gateway is equipped with 54 units of High Definition IP CCTV camerasenhancing security of shipments and allowing DHL Express to track and monitor each individualshipment. In addition to the close-circuit camera units, the gateway features the lateststate-of-the-art X-ray machines providing 100% screening for better security of shipments. Theexpansion is aimed at optimising processes leading to increased handling capacity, which also meanslater cut-off time for export pick-ups and earlier delivery time for inbound shipments thusproviding more convenience to customers. The sorting capacity at the expanded facility has thusdoubled up to 4,800 pieces per hour.
Jerry Hsu, Chief Executive Officer of DHL Express Asia Pacific, said: “Malaysia is one of themost competitive economies amongst developing Asian economies. We want to enhance our serviceoffered to customers based in this key territory as well as customers based in the region.Expanding the Penang gateway was a natural step in this evolution, given Penang’s geostrategicnexus and location mid-way between the growing economies of Asia Pacific, Europe and the UnitedStates.”
He added: “The express industry is still growing, despite the current global economicchallenges. We are experiencing robust growth in shipment volumes in Penang. Expanding our gatewayreinforces our commitment to foster a solid base and further enhance our services and capacity tosupport this growth.”
DHL highlighted the important role of Penang island in Malaysia’s external trade due to “itstight integration in the global manufacturing supply chain”. Since 2008, Penang’s industrial growthhas by far exceeded that of other Malaysian states. In 2013, Penang posted strong GDP growth ofnearly 5%. “The strong growth in DHL Express’ volumes to and from Penang is a further testament ofthe island’s significance to the company.”
DHL Express Malaysia’s Managing Director, Christopher Ong, added: “The expansion of the PenangGateway is a strategic part of DHL’s investment strategy as we continue to bolster ourinfrastructure and upgrade capabilities to accommodate growth in the Northern Region. Penang’sgrowth is driven by the technology and manufacturing sectors, which continue to keep our majortrade lanes to the US, Europe and Asia Pacific busy. The newly expanded gateway will play a majorrole in facilitating better connectivity to these key markets with its improved key processes.”
In 2013, DHL Express further boosted its cargo capacity in Penang with the addition of an A300freighter service operating five flights a week to Hong Kong thus connecting DHL’s non-stop servicefrom Hong Kong to Los Angeles (LAX). To date, DHL has 4 international gateways in Malaysia.
Meanwhile, in Vietnam DHL Express has invested over $10 million (€7.9 million) in its newCountry Office & South Service Centre in Ho Chi Minh City, making it the company’s biggestinvestment to date in the country.
Located near Tan Son Nhat airport, Vietnam’s biggest international gateway, the new facilityoccupies an area of 4,900 sqm. The service centre is twice the size of the company’s previouslocation in Ho Chi Minh City. With the additional space, DHL Express Vietnam has doubled itsshipment handling capacity in the south of Vietnam.
The centre is also equipped with 64 Internet Protocol cameras and an advanced Access ControlSystem to enhance shipment security. As part of DHL’s Go Green environmental programme, thefacility is equipped entirely with state-of-the-art LED lighting, which reduces power consumptionand carbon emissions by an estimated 30%.
“The expansion of the warehouse and the upgrade of the building allow us to operate moreefficiently, delivering shipments earlier and picking them up later, which gives our customers moretime and flexibility to work,” George Berczely, DHL-VNPT Express General Director, said. “We neededto expand our capacity to continue satisfying the growing demand for fast and reliableinternational services in the Southern area.”
Jerry Hsu, CEO, DHL Express Asia Pacific, explained the importance of Vietnam for the company’sbusiness: “Vietnam as a market has done exceedingly well and continues to show great promise.Industry data shows that its exports continued to surge in the first half of this year. With our$10 million investment, we are strengthening DHL Express’ infrastructure and capabilities in thismarket to continue supporting the healthy appetite for trade. We want to help customers here moveshipments faster and more efficiently, and we want to ensure we offer second-to-none servicequality.”
