DHL Express has significantly enhanced its aviation network and ground facilities across the Asia Pacific region, demonstrating its commitment to supporting growing global trade. The company has undertaken strategic improvements to meet the increasing demands of logistics services driven by supply chain diversification and geographical advantages.
Throughout 2023, DHL Express reported approximately 6% more shipments being moved between the Asia Pacific region and the rest of the world compared to the previous year. Ken Lee, the CEO for Asia Pacific at DHL Express, highlighted the region's rising significance, stating, "Asia Pacific markets are facing significant growth boosted by diversification of global supply chains, structural tailwinds and e-commerce. Thanks to our forward planning, we are well-positioned to respond to these shifts in demand with the timely and strategic enhancements we have made across the region." These upgrades come as the company prepares for the traditional peak season when consumer e-commerce traffic typically spikes.
Among the recent expansions, the South Asia Hub located by Changi Airport in Singapore has undergone substantial upgrades to prepare for anticipated growth. The hub, which has already seen volume increases of over 20% during 2021 and 2022, has new X-ray screening machines and enhanced material handling systems, increasing sorting capacity by approximately 40%. These changes are pivotal for DHL's multi-hub strategy for Asia Pacific—leveraging Singapore's strategic location as a logistics hub servicing shipments destined for Europe, the Americas, and beyond.
The hub is also equipped with five Boeing 777 freighters under contract with Singapore Airlines, offering over 1,200 tons of additional payload capacity, which optimizes transit times between continents. Notably, these new aircraft provide 18% lower carbon emissions compared to the older models, aiding DHL's efforts to improve sustainability.
Further to its regional development, DHL Express opened a new gateway facility in Kuala Lumpur, Malaysia, which spans over 13,000 square meters and incorporates fully automated sorting systems. Scheduled to meet Malaysia's rising status as a sourcing destination, this facility aligns with DHL's commitment to green building practices by being entirely carbon-neutral and integrating solar panels and energy-efficient utilities.
Aiming to improve service connectivity throughout the region, DHL has initiated new direct flights, such as the recently launched route from Hong Kong to Jakarta. This route is expected to benefit Indonesian businesses and consumers alike with quicker intra-Asia Pacific shipment deliveries.
Peter Bardens, Senior Vice President for Network Operations & Aviation – Asia Pacific, remarked, "We take a proactive approach to continuously adapt our network and improve our service quality. Our customers today have diverse needs, and our international network will help connect them to global markets and drive new growth opportunities in the region."
Also enhancing access from Oceania, DHL Express has instituted dedicated flight routes, such as between Sydney and Hong Kong. This creates next-day delivery services upon arrival in Hong Kong to numerous countries, including Mainland China, India, Japan, and several ASEAN nations. The company has established two new ground facilities this past year: one in Adelaide, which has quadrupled its peak handling capacity by moving closer to the airport, improving transit times, and reducing reliance on Australian port logistics.
The second facility opened is located in Newcastle and is significantly larger than its predecessor, enhancing local exporting capabilities and import variety. Not resting on its laurels, DHL Express plans to open another significant gateway facility in Christchurch, New Zealand—marking the company's largest single investment to date within the country. This facility will be the first of its kind to achieve 100% carbon neutrality.
To maintain its competitive edge, especially within the rapidly growing global trade environment, DHL Express has also opened its Hong Kong West Service Center, which handles over 50,000 shipments daily and is LEED gold-certified for its eco-friendly design. This expansion allows the company to efficiently cater to the burgeoning trade demands presented by both mainland China and the rest of the world.
On the horizon, DHL Express has solidified its partnership with Japan Airlines to strengthen air connectivity across key cities, including Tokyo, Seoul, and Shanghai. This will significantly streamline logistics and service reliability throughout Asia.
With India witnessing considerable increases in overall exports—boasting 1.23% growth between November 2022 and 2023—DHL Express has responded by investing and opening its first automatic shipment sorting hub located in New Delhi, aimed at facilitating seamless local exports to broader markets.
Through these multifaceted initiatives, DHL Express is not only enhancing its network capabilities but is also ensuring it is set to meet the demands of tomorrow's global trade dynamics effectively and sustainably.
