DHL Express, the world’s leading international express service provider, signed a concession agreement with the Incheon International Airport Corporation to implement its largest investment in South Korea to-date — a KRW175 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 and the main pillars of our growth around the world. Our new investment, the largest one for South Korea so far, helps to connect the world even more and to further improve transit time of global trade and on the trade lanes to Asia.”
Ken Lee, CEO, DHL Express Asia Pacific said, “Our Incheon Gateway occupies a vital strategic position along key routes between South Korea and countries like Singapore, Taiwan, Hong Kong and China — all of which are amongst our top ten inbound and outbound markets by express delivery volume. With online retail sales in Asia Pacific expected to reach US$2.5 trillion by 2023, our latest investments in the Incheon Gateway will align our infrastructure to what Asia’s e-commerce generation needs for now and tomorrow.”
The expansion of Gateway, located next to Incheon International Airport — currently the world’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 Express has seen a growth of over 45% in shipment volume, indicative of the growing role which the Gateway plays in global and intra-regional trade. The multi-year investment is expected to further support demand growth up to 2032.
The expanded facility will have a gross floor area of 58,700 square meters from the current 20,000 square meters — an increase of almost 200%. It will also be equipped with the latest technology for faster, more secure and efficient delivery handling processes.
ByungKoo Han, Country Manager of DHL Express Korea said, “The expansion plan is an important milestone for us and testifies to our long-term commitment to South Korea. With one of the world’s highest rates of online shopping, and its trajectory to become the world’s third-largest e-commerce market after China and the United States by 2023, this Gateway expansion will create the foundation for e-commerce businesses to expand both locally and across the Asia Pacific region.”
This investment also covers technical upgrades including fully-automated X-ray inspection machines, a four-kilometer conveyor belt, automated sorters, magnetic speed controllers and full CCTV coverage. The new technology will increase the Incheon Gateway’s total handling volume of parcels and documents by almost 160% — equipping it to service demand from some of the region’s fastest-growing economies.
Aligned to Deutsche Post DHL Group’s mission of net-zero logistics-related carbon emissions by 2050, the facility will also incorporate a range of ‘green’ features such as the use of solar power and energy-efficient lighting systems to achieve CO2 reduction of up to 1,500 tons per year.
When completed in Q2 2022, the Incheon Gateway will be DHL Express’s largest gateway in Asia Pacific. Alongside more than 160 customer touchpoints in the country, DHL Express is well-poised to meet customers’ needs in Korea.