DHL Express has signed a concession agreement with the operators of Incheon International to expand its facility at the South Korean hub. The arrangement will see the German-based logistics firm almost triple the size of the site through an investment of $140m (£111m), making the complex the largest of its gateways in the Asia Pacific region.
Bosses at the company have cited a rise in online shopping within the region as a key consideration in making the investment. Ken Lee, CEO of DHL Express Asia Pacific said: “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.”
John Pearson, CEO of DHL Express added: “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.”
Since opening the site in 2008, DHL Express has seen growth of over 45% in shipment volume. The multi-year investment is expected to support continued growth in the region up to 2032. The firm’s facility currently spans 215,000sq ft (20,000m²) and is due to almost triple in size to 631,000sq ft (58,700m²).
The plan – due for completion in the second quarter of 2022 – also covers technical upgrades which include fully automated x-ray inspection machines, a 2.49-mile (4km) conveyor belt, automated sorters and complete CCTV coverage. These additions are expected to increase the total handling volume of parcels and documents by almost 160%.