- DHL Express has signed a concession agreement withIncheon International Airport Corporation to expand its Gateway
- New expansion is the largest DHL Express investmentin South Korea, catering to rising demand in regional e-commerce trade
- Investmentset to increase gross floor area by almost 200% and total handling volume by about 160%
SEOUL, SOUTH KOREA - Media OutReach - Oct 15, 2019 - DHL Express, the world'sleading international express service provider, today signed a concession agreement with the Incheon International AirportCorporation to implement its largest investment in South Korea to-date - aKRW175 billion (€131 million) expansion plan for its gateway in South Korea.
John Pearson,CEO, DHL Express said, "Our quality and speed are crucial for our customers andthe main pillars of our growth around the world. Our new investment, thelargest one for South Korea so far, helps to connect the world even more and tofurther improve transit time of global trade and on the trade lanes to Asia."
Ken Lee, CEO, DHL Express AsiaPacific said, "Our Incheon Gateway occupies a vital strategic position alongkey routes between South Korea and countries like Singapore, Taiwan, Hong Kongand China -- all of which are amongst our top ten inbound and outbound marketsby express delivery volume. With onlineretail sales in Asia Pacific expected to reach US$2.5 trillionby 2023, our latest investments in the Incheon Gateway will alignour infrastructure to what Asia's e-commerce generation needs for now andtomorrow."
The expansionof Gateway, located next to Incheon International Airport -- currently theworld's fourth busiest cargo handler - brings DHL Express'commitment for this strategic hub to approximately €161 million in total. Since the opening of its Gateway in 2008, DHL Expresshas seen a growth of over 45% in shipment volume, indicative of the growing role which the Gatewayplays in global and intra-regional trade. The multi-year investment is expected to further support demand growth up to2032. The expanded facility will have a gross floor area of 58,700 squaremeters from the current 20,000 square meters -- an increase of almost 200%. It will also be equipped with the latesttechnology for faster, more secure and efficient delivery handling processes.
ByungKoo Han, Country Manager of DHL ExpressKorea said, "The expansion plan is an important milestone for us and testifies to ourlong-term commitment to South Korea. With one of the world's highest rates ofonline shopping,and its trajectory to become the world's third-largest e-commerce market afterChina and the United States by 2023, this Gateway expansion willcreate the foundation for e-commerce businesses to expand both locally andacross the Asia Pacific region."
This investment also covers technical upgrades including fully-automatedX-ray inspection machines, a four-kilometer conveyor belt, automated sorters,magnetic speed controllers and full CCTV coverage. The new technology will increasethe Incheon Gateway's total handling volume of parcels and documents by almost 160% -- equipping it to service demand from some of the region'sfastest-growing economies. Aligned to Deutsche Post DHL Group's mission of net zerologistics-related carbon emissions by 2050, the facility will also incorporatea range of 'green' features such as the use of solar power and energy-efficient lighting systems to achieve CO2 reduction of up to 1,500tons per year.
When completed in Q2 2022, the IncheonGateway will be DHL Express'slargest gateway in Asia Pacific. Alongsidemore than 160 customer touch pointsin the country, DHL Express is well-poised to meet customers' needs in Korea.
50 Years DHL
In 2019 DHL is celebrating 50 years since thecompany's founding by three entrepreneurs in San Francisco in 1969. DHL beganas a disruptor to the traditional delivery industry, circumventing bureaucracywith an innovative new service to deliver documents by air overnight. Sincethen, DHL has grown into a globe-spanning family of DHL companies with about380,000 employees in over 220 countries and territories that covers the entirespectrum of logistics and supply chain services. DHL's customer-centricity andcan-do culture have fueled five decades of innovation -- from the DHL 1000, oneof the first word processing computers in the world, to using the purpose builtStreetScooter, an environmentally friendly delivery vehicle powered by anelectric drive and developed by Deutsche Post DHL Group. With the Mission 2050 commitmentto reach zero group-wide emissions by 2050, DHL is continuing to be atrailblazer in the logistics industry.
DHL -- The logistics company for the world
DHL is the leading global brand in the logistics industry. Our DHL familyof divisions offer an unrivalled portfolio of logistics services ranging fromnational and international parcel delivery, e-commerce shipping and fulfillmentsolutions, international express, road, air and ocean transport to industrialsupply chain management. With about 380,000 employees in more than 220countries and territories worldwide, DHL connects people and businessessecurely and reliably, enabling global trade flows. With specialized solutionsfor growth markets and industries including technology, life sciences and healthcare,energy, automotive and retail, a proven commitment to corporate responsibilityand an unrivalled presence in developing markets, DHL is decisively positionedas "The logistics company for the world".
DHL ispart of Deutsche Post DHL Group. The Group generated revenues of more than 61billion euros in 2018.