The Deutsche Post DHL Group subsidiary launched a new 23,600-square-meter automated parcel sorting and processing facility in the Changi Airfreight Centre at Singapore Changi Airport to serve as a 24-hour express hub for South Asia.
DHL Express opened a new $1.14 billion Singapore (U.S. $100.3 million) hub in Singapore earlier this week, the company said in a statement.
Located in the Changi Airfreight Centre at Singapore Changi Airport and open 24 hours a day, the Deutsche Post DHL Group subsidiary’s new 23,600-square-meter international express facility features an automated parcel sorting and processing system, an industry first in the region.
The new facility is 33 percent larger than the company’s previous hub, and will increase both capacity and efficiency to allow DHL Express to handle growing shipment volumes in the area, according to the company.
According to DHL Express CEO Ken Allen, the investment in the DHL South Asia Hub is the the largest infrastructural investment for the company in Singapore to date.
“The country’s strategic location not only boosts our operational network capabilities, but also supports growing trade in the region aided by a stronger global economy,” said Allen.
“The DHL South Asia Hub is a significant milestone in further enhancing our multi-hub strategy in the region,” added Ken Lee, chief executive officer of DHL Express Asia Pacific. “With four hubs in Asia Pacific – Hong Kong, Shanghai, Singapore and Bangkok – this links over 70 DHL Express Gateways located throughout the region.
“Together, these facilities reinforce our customer commitment to provide the most efficient international express connectivity between key markets in the region. This will also allow us to add more network flights in and out of Singapore, such as the recent introduction of the Phnom Penh-Bangkok flight that adds to our existing Bangkok-Singapore service, as regional trade continues to grow.”
Frank-Uwe Ungerer, senior vice president and managing director of DHL Express Singapore, said the new facility is part of a greater effort to better serve customers’ growing e-commerce needs and the “on-demand economy.”
With the improved sorting speed and accuracy of the automated system, multi-dimensional tunnel scanners to accelerate barcode reading, and automated X-ray machines that scan packages up to three times faster than previous systems, the facility can process as many as 24,000 shipments and documents an hour and more than 628 metric tons of cargo during peak times. This effectively triples the cargo handling capacity of the hub and increases processing speed six-fold compared with DHL Express’ previous facility, according to Ungerer.
“The increased efficiency allows us to look into streamlining our service center operations in Singapore from end to end, giving our customers even faster deliveries and better business efficiency,” he said.
“The opening of this hub is a significant milestone in our close partnership with DHL Express, and a major development in our journey of growing the air cargo hub at Changi Airport,” said Mr Lee Seow Hiang, chief executive officer of Changi Airport Group. “With the capacity to handle more items through smarter design and a higher level of automation, this landmark facility is a much-valued boost to the express cargo handling capabilities at Changi.”
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