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SHANGHAI, July 12, 2012 /PRNewswire-Asia/ --
DHL, the world's leading logistics company, today opened its biggest express hub in Asia -- the US$175 million (Note 1) DHL Express North Asia Hub at the Shanghai Pudong International Airport. The company also announced plans to further invest US$132 million (euro 100 million) to add eight dedicated aircraft to service high demand routes between Shanghai and North Asia, Europe and the US, by 2014.
Dr. Frank Appel, CEO of Deutsche Post DHL, said: "DHL Express North Asia Hub is a logistics milestone in DHL's Asia Pacific network and the culmination of a multi-hub and aviation strategy that cements our leadership position in terms of connections, convenience and cost-effectiveness. With Asia's leading economies fast integrating and free trade agreements reducing barriers to international commerce, logistics companies need capabilities that are ahead of the curve and offer simplicity, speed and service."
Covering a land area of 88,000 square meters (roughly equivalent to 13 football pitches), DHL Express' North Asia Hub can process up to 20,000 documents and 20,000 parcels an hour. The facility has outstanding environmentally-friendly features, such as energy efficient T5 lighting and a solar-powered system for hot water. The hub's sortation system is also designed to automatically detect components that are not in use and switches them to an energy-saving 'sleep' mode until they are needed again.
The completion of the North Asia hub caps an unrivaled multi-hub Asian network. Together, DHL Express' four hubs in Asia Pacific -- Shanghai, Hong Kong, Bangkok and Singapore -- link to over 70 DHL Express Gateways located throughout the region. DHL's infrastructural network is served by a comprehensive air network of over 40 aircraft covering 40 countries and territories, and utilizing approximately 690 commercial flights per day in Asia Pacific.
Li Derun, President of Shanghai Airport Authority, said: "With the launch of the DHL Express North Asia Hub, the turnover capacity and throughput of Shanghai Pudong International Airport will be further enhanced. Today's ceremony marks a step forward for Shanghai's air cargo hub and also opens a new chapter of collaboration between the Shanghai Airport Authority and DHL. The Shanghai Airport Authority will continue to optimize the operating environment for our partners and work together to enhance the core competitiveness of Pudong International Airport."
Planned investment in China and the North Asia region
Over the next two years, DHL's planned investment of US$132 million (euro 100 million) will increase the dedicated capacity of its Asia Air Network by deploying eight freighter aircraft between Shanghai and North Asia, Europe and the US. The planned flights will be operated by partner and equity-held airlines: Polar Air, Aerologic, and DHL Air UK. There will be a variety of other providers as well.
Building on existing direct connections between the DHL Express North Asia Hub in Shanghai to Hong Kong, Osaka, Tokyo, and DHL's global hubs in Leipzig and Cincinnati, the planned investments in the next two years will enhance capacity on these routes and also include new connections between Shanghai to East Midlands, UK.
DHL further plans to increase capacity on routes between the DHL Express North Asia Hub and other cities in mainland China and Taiwan. Over the next few months, DHL will add direct connections to Incheon, Taipei and Chinese cities such as Dalian and Qingdao, with Beijing and Xiamen likely to come on stream in 2013.
Ken Allen, CEO of DHL Express, said: "DHL pioneered Express services in the region 40 years ago, and was the first international express company to enter China 32 years ago. Shanghai is one of the key commercial centers of China and gateway to the Yangtze River Delta which accounts for almost 39% (Note 2) of China's total value of imports and exports. The DHL Express North Asia Hub will play a critical role by supporting growth, improving transit times and network reliability, and providing a foundation for later pick-ups and earlier deliveries for customers across North Asia".
New facility bolsters DHL's multi-hub Asian network, giving businesses faster access to international markets
"Leveraging increased regional and international flight connections through Shanghai, DHL will be able to provide greater flexibility and reliability to customers choosing time-definite morning delivery to major cities in North Asia and greater regional connections across North Asia as well as intercontinental links to Europe and the US, "said Jerry Hsu, CEO, DHL Express Asia Pacific.
"DHL's latest North Asia Hub launch and upcoming planned flight investments follows from continuous enhancement in its Asia Air network. In 2011, DHL added two B747 freighters operated by Polar Air to serve Japan, Korea, and Eastern China. We also upgraded our capacity on the Beijing to Hong Kong route with new Airbus freighter services, and improved the Shanghai to Hong Kong route with a new B747 freighter service. In support of China's 'Go West' growth strategy, DHL Express also launched five flights per week between Hong Kong and Chengdu," he added.
DHL's extensive network provides businesses with faster access to international markets. Complementing DHL's Central Asia Hub in Hong Kong, the North Asia Hub enables shorter routing options for customers shipping within North Asia, which could ultimately result in savings of up to four hours airtime, later pick-ups and earlier deliveries.
Notes:
1. This figure represents investment over the lifetime of the facility
2. China National Bureau of Statistics, 2010
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Media Materials:
Video footage and photos of the DHL Express North Asia Hub are available for download via the following link - www.dp-dhl.com/medialibrary
NOTES TO EDITORS
Built on a total land area of 88,000 sqm (roughly equal to 13 football pitches), which includes an operational floor space of 55,000 sqm, the DHL Express North Asia Hub is the largest express facility at the Shanghai Pudong International Airport and is located airside in the West Cargo Area adjacent to Runway 3.
Its state-of-the-art heart is a 5.8km-long material handling system which serves 94 final sorting positions. There is a Quality Control Center operating 24/7 which proactively monitors shipments in the air and on the ground.
The Hub will be served by our joint venture airlines Polar, Aerologic, and Air Hong Kong, plus additional dedicated services provided by various Asian commercial airlines via the Pudong airport.
Last year, DHL invested euro 100 million to add three Boeing 747-400 Converted Freighters in Asia-Pacific to increase its capacity, connectivity and service reliability in the region. Operated by Air Hong Kong, a joint venture between Cathay Pacific and DHL, the three B747-400 BCFs with a payload of 100 tonnes each currently services three high capacity routes six days a week: Tokyo-Hong Kong, Singapore-Hong Kong, Shanghai-Hong Kong.
It also launched an additional daily intercontinental route from Hong Kong to Cincinnati in response to increasing demands for services from South China and Hong Kong to North America. In March, DHL launched a new, additional round-the-world flight connecting Hong Kong, Los Angeles and Leipzig.
DHL - The Logistics company for the world
DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.
DHL is part of Deutsche Post DHL. The Group generated revenue of 53 billion euros in 2011.
