• From2020 to 2022, DHL Express Asia Pacific is spending close to EUR 690 million oninfrastructure build across key markets in the region to increase capacity andefficiency
• ApproximatelyEUR 60 million has been committed to boost its air network with new aircraftand new routes
• DHLExpress is ready for historic 2020 peak season with 30-40% increase in shipmentvolume expected

SINGAPORE - Media OutReach - 12 November 2020 - DHL Express, the world's leadingexpress service provider, announced today that it is investing circa EUR 690million between 2020 and 2022 to build or expand its facilities in key growthmarkets of Australia, Japan, Hong Kong S.A.R. and South Korea. Equally, it intendsto spend close to EUR 60 million to bolster its Asia Pacific air network suchas introducing direct, new (e.g. Vientiane, Yangon), and frequent (e.g.Oceania) flight routes.

DHL Express expectsshipment volumes in Asia Pacific to be 30-40% larger than last year's peakseason, which typically starts around November and lasts until Lunar New Year. "Theseinvestments are testament to our continued confidence in the region. They arecrucial not only in the near term as we expect to tackle an unusually strongpeak season, but it will make sure that we are well-positioned in the long runto keep global trade running as e-commerce and cross-border trade grow," saidKen Lee, CEO of DHL Express Asia Pacific.

The expandedinfrastructure and new flight routes across Asia Pacific will help the companytackle the unprecedented growth in shipment volume and address the ever-growingdemand for time-definite express deliveries. Since the start of 2020, DHLExpress has experienced a 50% surge in e-commerce shipments in Asia Pacific(excluding China).

North Asia investments

The Osaka DistributionCenter in Japan scheduled to beopened by the end of 2020 will be DHL Express' largest distribution facility inthe country. With an investment of EUR 71.4 million, it will have 21,000 squaremeters (sqm) of floor space and is equipped with a state-of-the-art sortingsystem and X-ray inspection machines.

The company's CentralAsia Hub (CAH) in Hong Kong S.A.R.,one of DHL Express' three global hubs, has a EUR377 million expansion underway that will boost warehouse space by 50% to47,000 sqm and increase the hub's annual throughput to 125,000 pieces per day.This means that the hub will be handling six times more in terms of shipmentvolume than when it was first opened in 2004.

Furthermore, a EUR131 million planned investment in a gateway facility in Incheon, Seoul, South Korea will boost shipmentprocessing capacity by approximately 160%, equipping it to service demand fromsome of the region's most advanced economies. The expansion will almost triple thefacility's gross floor area to 58,700 sqm, making it DHL Express' largestgateway in Asia Pacific.

South & Southeast Asia investments

In Bangladesh, DHL Express is investing~EUR 25 million to build a new facility that will combine its country officeand service center into a 10,000 sqm site. The new facility will bring about anapproximate 35% increase in shipment processing capacity, and is expected to beopened in Q1 2022. The new Kuala Lumpur Gateway in Malaysia, which is almost triple the size of DHL Express' currentfacility, will increase the company's processing capacity by more than 200%.The EUR 39.4 million facility will be situated at the Kuala LumpurInternational Airport and is scheduled to be completed by 2022. At the same time,construction of a new gateway facility in Bangalore, India is underway, slatedto be ready by 2021.

Utilizing a brand newBoeing 777-200LRF with a capacity of up to 102 tons, DHL Express now flies fourtimes a week from its US hub in Cincinnati and the Los Angeles gateway to theDHL Express South Asia Hub in Singapore, via Sydney. The dedicated routeshortens transit time for shipments to and from the US, and allows DHL tooperate with greater efficiency while meeting the mounting demand for expressdeliveries.

Oceania investments

Many SMEs in Australiaand New Zealand, which have traditionally relied on economy services, areincreasingly switching to express delivery services. This trend has led to amore than 40% increase in DHL Express Australia's inbound and outbound volumessince May 2020. DHL Express has significantly increased its number of dedicatedflights to and from Australia to around 30 regular services per week, comparedto 10 before the Covid-19 pandemic hit. This includes a new flight thatconnects Melbourne, Auckland and Christchurch, as well as a new 4x-a-weekflight between Hong Kong S.A.R. and Sydney.

In September, thecompany launched its EUR31 million Sydney Service Center, which isdouble the size of the previous facility and is equipped with an automatedhigh-speed sorting system that processes up to 4,300 shipments per hour. By end2021, DHL Express will kick start operations at the expanded Brisbane Gatewayand Service Center, in which the company will spend EUR 13.2 million toincrease floor space by 148% and double its processing capacity. New andexpanded facilities are also being planned for Melbourne and Adelaide in thenear future. 

"The pandemic hascaused unparalleled changes to the air cargo industry and it will likely take along time for the industry to recover to pre-pandemic levels. But having adedicated fleet and well-implemented contingency plans have helped to keep ournetwork fully operational despite the overnight disappearance of commercial airbelly cargo space. The growth in e-commerce shipment volumes will continue tooutpace the available air cargo capacity in the industry, strengthening thecase to invest in adding new dedicated aircraft to our fleet, open up newroutes, and supplement our fleet with charter flights," said Sean Wall,Executive Vice President, Network Operations & Aviation, DHL Express AsiaPacific.

DHL Express currentlyhas 23 dedicated aircraft in its Asia Pacific fleet, and operate approximately 1,040flights per day. The company will be adding a new Airbus A330-300P2F to itsAsia Pacific fleet in February 2021, as well as a new Boeing 737-800F in March2021. Globally, the company has increased the number of its daily flightssignificantly. This includes four new Boeing 777F wide-body aircraft that wereput into service just this year, with two more expected to be delivered nextmonth. These six additional aircraft will enable DHL Express to carry out morethan 3,000 additional intercontinental flights per year.

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