DHL Express has opened an expanded DHL South Asia Hub within Changi Airfreight Centre (CAC) at Singapore Changi Airport as part of an 85 million euro ($93.5 million) investment.

The 24-hour express hub facility spans 23,600 square metres and outfitted with the industry’s first fully automated express parcel sorting and processing system in South Asia.

DHL says it will boost its operational capacity and efficiency – offering speedier deliveries for customers in the region and says the opening is “timely” – as it has recorded healthy shipment growth in recent years, particularly in the southern part of Asia Pacific.

Between 2012 and 2015, the average daily shipments for Oceania grew approximately 50 per cent, South Asia at 30 per cent and Southeast Asia rose 25 per cent. This facility is 33 per cent larger than the previous hub, providing DHL with additional capacity to handle the growing shipment volumes for regional and international destinations.

DHL explains with the hub located within the CAC, a 24-hour Free Trade Zone managed by Changi Airport Group, it improves the flow of goods between aircraft and the facility, and allows consignments to be shipped or transshipped within an hour.

DHL Express chief executive officer (CEO), Ken Allen says: “Over the years, we’ve invested significantly to bolster our network and services in Asia Pacific.

“Our investment in the DHL South Asia Hub is the most recent in a series of global network investments made, and is the largest infrastructural investment made in Singapore to date.

“The country’s strategic location not only boosts our operational network capabilities, but also supports growing trade in the region aided by a stronger global economy.”

DHL Express Asia Pacific CEO, Ken Lee says with four hubs in Asia Pacific – Hong Kong, Shanghai, Singapore and Bangkok it links over 70 DHL Express Gateways located throughout the region.

He adds: “This will also allow us to add more network flights in and out of Singapore , such as the recent introduction of the Phnom Penh – Bangkok flight that adds to our existing Bangkok – Singapore service, as regional trade continues to grow.”

DHL says the facility processes up to 24,000 shipments and documents per hour and can handle more than 628 tonnes of cargo during the peak processing window. This processing speed is six times faster, while the handling capacity is three times more, as compared to the manual operations in the previous facility.