DHL Express to invest US$147m to expand its Incheon gateway near airport
DHL Express has inked a concession agreement with Incheon International Airport Corporation to implement its KRW175 billion (US$147
DHL Express has inked a concession agreement with Incheon International Airport Corporation to implement its KRW175 billion (US$147.41 million) expansion plan for its gateway in South Korea. The project is slated for completion in the second quarter of 2022.
The expansion of the gateway, located next to Incheon International airport, brings DHL Express' commitment for this strategic hub to EUR161 million (US$178.396 million) in total.
DHL Express CEO John Pearson said in a statement: '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.'
DHL Express Asia Pacific CEO Ken Lee 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 $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.'
Since the opening of its gateway in 2008, the company has seen a growth of 45 per cent in shipment volume. 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 metres, up from 20,000 sqm currently. It will be equipped with the latest technology for faster, more secure and efficient delivery handling processes.
This investment also covers technical upgrades including fully-automated X-ray inspection machines, a four-kilometre 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 160 per cent.