DHL plans to invest $35 million in Hong Kong to capitalise on the region’s continued trade growth. The investment includes a new facility in South Kowloon, which will enhance DHL’s ground handling capacity by about 20%.
According to Scott Price, DHL Express CEO of Asia-Pacific, 2006 was the fifth consecutive year that the company recorded double-digit growth in Hong Kong.
“The investment program brings us close to $1 billion in our commitment to the Greater China area to position us for the opportunities which abound in this region,” said Price.
This investment program raises DHL’s total outlay in Hong Kong to $645 million, which includes the $210 million Central Asia SuperHub (CAS), the $400 million invested in Air Hong Kong (DHL’s joint venture with Cathay Pacific), plus service centres and office facilities.
DHL’s new facility – the Kowloon South Service Centre – is expected to open by the second quarter of 2007.
The facility will supplement its two existing ground handling facilities – the Kowloon Central Service Centre in Cheung Sha Wan and the Kowloon West Service Centre in Tsuen Wan – which are operating near full capacity, expanding the company’s ground handling capacity in Hong Kong to 45,500 shipments per day.
DHL’s air express cargo handling capacity will also be significantly increased when the expansion of its $210 million CAS at the Hong Kong International Airport is completed in the second half of 2007. Already the largest of DHL’s hubs in the region before expansion, CAS will be fully operational in 2008 with increased capacity to about 40 million air shipments per year.
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