DHL Express has launched its EUR85.0 million (US$85.4 million) South Asia Hub, a fully mechanized 24-hour express facility located within Changi Airfreight Centre (CAC) at Singapore Changi Airport.
The 23,600-square-meter facility is more than 30% larger than the earlier hub and outfitted with the industry’s first fully automated express parcel sorting and processing system in South Asia, and is set to boost the center’s operational capacity and efficiency.
The new facility opens just as the company has recorded healthy shipment growth in recent years, particularly in the southern part of Asia Pacific, a DHL statement said. Between 2012 and 2015, the average daily shipments for Oceania grew about 50%, South Asia 30%, and Southeast Asia 25%.
This facility is 33% larger than the previous hub for additional capacity to handle the growing shipment volumes for regional and international destinations.
With the hub located within the CAC, a 24-hour Free Trade Zone managed by Changi Airport Group, it improves the flow of goods between aircraft and the facility, and allows consignments to be shipped or transshipped within an hour.
The facility processes up to 24,000 shipments and documents per hour and can handle more than 628 tonnes of cargo during the peak processing window. This processing speed is six times faster, while the handling capacity is three times more, as compared to the manual operations in the previous facility.
The increased efficiency is achieved from the improved sorting speed and accuracy of the automated system, multidimensional tunnel scanners that accelerate barcode reading, and automated X-ray machines that scan packages up to three times faster than previous systems.
In addition, the facility is partially powered by solar energy, which supplies about 20% of the hub’s total energy consumption.
These automation systems also enhance productivity, enabling employees to focus on higher value tasks such as risk mitigation to prevent potential shipment delays, issues management, and additional security inspection.
“Over the years, we’ve invested significantly to bolster our network and services in Asia Pacific. Our investment in the DHL South Asia Hub is the most recent in a series of global network investments made, and is the largest infrastructural investment made in Singapore to date,” said Ken Allen, CEO of DHL Express.
“The DHL South Asia Hub is a significant milestone in further enhancing our multi-hub strategy in the region. With four hubs in Asia Pacific—Hong Kong, Shanghai, Singapore and Bangkok—this links over 70 DHL Express Gateways located throughout the region,” Ken Lee, CEO of DHL Express Asia Pacific, added.
“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.”
