DHL Express invests 85 million euros in new Singapore logistics facility

INTERNATIONAL express service provider DHL Express has pumped 85 million euros (S$140 million) into a new 24-hour express hub facility located within Changi Airfreight Centre at Singapore Changi Airport.

The construction of the DHL South Asia Hub is expected to be completed by the first quarter of 2016, and will feature the first automated express parcel sorting and processing system in Singapore and South Asia.

The facility will occupy a land area of 23,000 square metres and a total floor area of 23,600 sq m. The facility will also be able to handle a cargo throughput of more than 628 tonnes per day when at full capacity, and process shipments at the speed of 14,000 shipments per hour. In comparison, the manual processing system in the current facility handles up to 225 tonnes per day at a speed of 2,400 shipments per hour.

DHL Express has been working with Changi Airport Group in its expansion plans since 2013.

Herbert Vongpusanachai, senior vice-president and managing director of DHL Express Singapore, said: "The facility is designed with the vision to deliver top-notch productivity and operational efficiency to benefit our customers with improved speed, reliability and flexibility. With the widened global network and increased flight frequency, we will be able to offer businesses faster access to international markets."

Lee Eng Keat, Singapore Economic Development Board's director for logistics, said that DHL's decision to locate its South Asia Hub in Singapore will help strengthen the country's position as a leading logistics hub and a practice leader in automation.

The new facility is DHL Express' largest infrastructure investment in Singapore in the 43 years that it has been operating in the country. It is also DHL Express' largest investment in Asia since 2012.

The latest development comes on top of a recent series of plans to bolster DHL Express' network infrastructure in the region. This includes DHL Express' Central Asia Hub in Hong Kong, which boasts the region's largest throughout; the North Asia Hub in Shanghai Pudong International Airport; and a new gateway in Tokyo slated for completion in 2016.