DHL launches Malaysia's largest international express facility

PENANG, Malaysia, Sept. 23, 2014 /PRNewswire/ -- DHL Express, the world's leading international express provider, inaugurates today the expansion of its gateway in Penang, making it Malaysia's largest international express facility, to support the country's and specifically Penang's growing logistics needs.

The RM10 Million (EUR 2.4 Million) investment sees DHL Express' Penang gateway doubling its size to 4,000 sq metres, establishing it as the biggest express gateway in Malaysia.

The gateway expansion is part of DHL Express' strategic RM16 Million (EUR3.9 Million) of investment announced earlier this year to upgrade its facilities and extend its network to cater to Malaysia's growing logistics demand. The remaining investment includes three additional Service Points to DHL Express' current 89 Service Points nationwide.

The gateway opening was officiated by the Chief Minister of Penang, Y.A.B. Tuan Lim Guan Eng and attended by Jerry Hsu, Chief Executive Officer, DHL Express Asia Pacific, Yasmin Aladad Khan, Senior Vice President, DHL Express South East Asia and South Asia and Christopher Ong, Managing Director, DHL Express Malaysia.

Jerry Hsu, Chief Executive Officer of DHL Express Asia Pacific said, "Malaysia is one of the most competitive economies amongst developing Asian economies. We want to enhance our service offered 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 geostrategic nexus and location mid-way between the growing economies of Asia Pacific, Europe and the United States.

"The express industry is still growing, despite the current global economic challenges. We are experiencing robust growth in shipment volumes in Penang. Expanding our gateway reinforces our commitment to foster a solid base and further enhance our services and capacity to support this growth."

Penang – the backbone to DHL's success

The highly urbanized and thriving island of Penang plays an important role in Malaysia's external trade given its tight integration in the global manufacturing supply chain. Since 2008, Penang's industrial growth has been nothing short of spectacular comparative to the other states in Malaysia. As much as 61 percent of total exports go to China, United States, Hong Kong, Japan and the Germany while 63 percent of imports come from China, United States, Singapore, Japan and Germany[1]. Penang's GDP growth in 2013 remains strong at slightly less than 5 percent[2]. This places DHL Express' gateway in a prime position to complement Penang's vibrant trade and industrial activities. The strong growth in DHL Express' volumes to and from Penang is a further testament of the island's significance to the company.  

DHL Express Malaysia's Managing Director, Christopher Ong reaffirmed, "The expansion of the Penang Gateway is a strategic part of DHL's investment strategy as we continue to bolster our infrastructure and upgrade capabilities to accommodate growth in the Northern Region. Penang's growth is driven by the technology and manufacturing sectors, which continue to keep our major trade lanes to the US, Europe and Asia Pacific busy. The newly expanded gateway will play a major role in facilitating better connectivity to these key markets with its improved key processes."

Christopher also expressed confidence in the prospects for the Malaysian logistics sector. "According to the Logistics Performance Index 2014 (LPI), Malaysia is ranked 25^th place amongst 160 countries, and is performing at 83 percent of the top performer (Germany), putting Malaysia in the top tier of the upper middle-income performers on the LPI. This shows that Malaysia is punching above its weight and is in a good position amongst its peers as a favourable country for export-import trade."

"Favourable government policies in the form of cyber laws, financial and non-financial incentives, as well as appropriate strategic policies like the 'Penang Paradigm' (a 10-year development blueprint of Penang, developed by the Penang Institute) and the Logistics Sector Master Plan have further made Penang DHL Express' preferred choice of investment," said Christopher.

New Additions to DHL's Gateway in Penang

The newly expanded gateway is equipped with 54 units of High Definition IP CCTV cameras which enhances security of shipments and allows DHL Express to track and monitor each individual shipment. In addition to the close-circuit camera units, the gateway is furnished with the latest state-of-the-art X-ray machines providing 100 percent screening for better security of shipments. The expansion is designed to optimize processes which results in increased in handling capacity, and this also means that customers can experience a later cut-off time for export pick-ups and enjoy earlier delivery time for inbound shipments.

DHL's cargo capacity in Penang ratcheted up by 30 percent with the addition of an A300 freighter service in 2013. The A300 service operates 5 times weekly to Hong Kong, connecting DHL's unique non-stop service from Hong Kong to Los Angeles (LAX). With this industry leading express logistics service, businesses in Penang can further expand their footprint with quicker go-to-market lead time in all international key markets.  

DHL's expanded facility also increased its dedicated staff strength and doubled its sorting capacity up to 4,800 pieces per hour.

To date, DHL has 4 international gateways in Malaysia, including Penang and a network of 89 Service Points, five of which are in Penang.

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DHL – The logistics company for the world

DHL is the global market leader in the logistics and transportation industry and "The logistics company for the world". DHL commits its expertise in international express, national and international parcel delivery, air and ocean freight, road and rail transportation as well as contract and e-commerce related solutions along the entire supply chain. A global network composed of more than 220 countries and territories and around 315,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their shipping and supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenues of more than 55 billion euros in 2013.

For more information: www.dp-dhl.com

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