DHL announces plans for new North Asia hub in Shanghai

Staff -- Logistics Management, 11/26/2007

BONN, Germany—Express delivery and logistics services provider DHL said earlier today that it will be developing a DHL Express North Asia hub in Shanghai, China, which will be located at the Shanghai Pudong International Airport.

The company said in a statement that the hub will be built on its “already-extensive global network” and provide better connections from Asia to the United States and Europe.

DHL said it will invest $175 million in the hub, and it first reported earlier this year that it was considering setting up this hub. At the time, it said it was also considering Incheon International Airport in South Korea.

DHL added that the Shanghai hub will be part of its “hub and spokes” regional air network strategy, which it said are optimally-positioned to reduce transit times and distances within the regions it serves, as well as better connect the region with the rest of the world. And the DHL statement said that this hub will provide added flexibility for shippers with its guaranteed ‘Time Definite’ delivery for more major cities in North Asia.

Utilizing new technologies in an effort to better serve shippers will be a primary focus of the facility, according to the DHL statement. The company will be leveraging a Quality Control Center (QCC) that will also serve as a nerve center for crisis management, according to DHL. DHL described the QCCs as a network of regional and country quality control centers that proactively monitor all DHL air and ground shipments. And it will also feature an automated sorting system, which, DHL said, will enhance efficiency and speed in cargo processing to provide shippers with improved time to market capabilities. This sorting system will also have the capacity to sort conveyable shipments to a peak capacity of up to 20,000 parcels and 20,000 documents per hour.