Keeping things moving
The importance of logistics to world commerce can hardly be over-estimated, even if it is not an aspect of business and trade that is studied by all. The amount of money that is being invested in the sector gives some idea, however, as does the revenue that can be earned from related activities.
Following DHL's recent opening of a new US$175 million North Asia Hub at Shanghai Pudong International airport (ACW, 16 July, p3), the express services giant last week opened the doors to a new MegaHub facility in Hong Kong.
Requiring an investment of HK$630 million (US$81.2 million) and taking in warehouse space of almost 900,000ft2 (83,613m2), the building is located at Interlink in Tsing Yi, close to Hong Kong International airport and the city's Central Business District.
"Asia continues to be one of the most active and dynamic regions in the world economy, with its rapid growth and demanding an ever-developing network to keep pace with its needs," notes Frank Appel, CEO Deutsche Post DHL. He added that the new MegaHub would "better serve" this booming market.
"With this new MegaHub we will expand our organisational capabilities, providing an even better service to our customers in Hong Kong and beyond by meeting their needs for comprehensive solutions from a single source," Edwards commented.
Its new Hong Kong headquarters represents only the latest investment that the integrator has chosen to make in its Far East operations. The North Asia Hub that was unveiled earlier this month covers a land area of 88,000m2 and can process up to 20,000 documents and 20,000 parcels an hour.
As well as the DHL infrastructure in the Far East, the network that supplies and connects it is also going to receive further investment. The express services provider already links 40 countries and territories through a fleet of over 40 aircraft, while the company operates about 690 commercial flights each day in Asia Pacific. However, in recently announced plans, DHL confirmed that it expects to increase the dedicated capacity of its Asia Air Network by deploying eight freighters on routes between Shanghai and North Asia, Europe and the US.
These all-cargo aircraft will be operated by partner airlines or by carriers in which DHL has a share: Polar, Aerologic and DHL Air UK. As well as building on the existing connections it offers out of Shanghai, DHL will also be adding a new link to East Midlands in the UK, while new direct routes to cities in China, Taiwan and South Korea are also set to be launched.