Dhaka : DHL Express will invest approximately EUR 690 million (SGD 1 billion) over the next two years to build new facilities or expand existing facilities in the major growth markets of Australia, Japan, Hong Kong and South Korea. In Bangladesh, DHL Express is investing around EUR 25 million to build a new facility that combines its country office and service center on a 10,000 square meter site and will increase cargo handling capacity by 35 per cent and is expected to open in the first quarter of 2022.
It also plans to spend close to EUR 60 million to strengthen its air network in the Asia-Pacific region, such as introducing direct, new and frequent routes.
The courier service provider expects this peak season - which usually starts in November and continues into Chinese New Year early the following year - will see a 30-40 per cent increase in freight volumes in the Asia-Pacific region.
The investments will also ensure that the company is well positioned in the long term to keep global trade going as e-commerce and cross-border trade grow.
Since the start of this year, the company has seen a 50 percent rise in e-commerce shipments in the Asia-Pacific region, excluding China.
Its investments include 39 new gateway facility valued at EUR 4 million in Malaysia, located at Kuala Lumpur International Airport due for completion by 2022, this will be roughly three times the size of the current facility and have more than three times the processing capacity
A new gateway facility is also being built in Bangalore, India, and is scheduled to be ready by next year.
In North Asia, about EUR 714 million are pumped into a distribution center in Osaka, which is scheduled to open by the end of this year. This project extends over an area of 2,100 square meters, and it will be the largest distribution facility for DHL Express in Japan that will be equipped with the latest sorting systems and screening machines.
Its Hong Kong center is undergoing a EUR 377 million expansion that will increase warehouse space in half to 47,000 square meters and increase the annual productivity of the center to 125,000 pieces per day.
There will be a planned investment of EUR 131 million in a gateway facility in South Korea for more than twice the freight handling capacity. This expansion will nearly triple the total area of the facility to 58,700 square meters, making it the largest gateway for the company in the Asia Pacific region.
Meanwhile, two months ago in Australia, the company launched a EUR 31 million service center in Sydney, double the size of the previous facility and equipped with a high-speed automatic sorting system that handles up to 4,300 shipments per hour.
At the service center and Brisbane Gate, DHL Express will spend around EUR 132 million to increase floor area and double processing capacity. Operations will begin by the end of next year
New and expanded facilities are also being planned in Melbourne and Adelaide in the near future.