The 23,600 square metre facility is outfitted with the industry's first fully automated express parcel sorting and processing system in South Asia.
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.
Ken Lee, CEO, DHL Express Asia Pacific, said, "The DHL South Asia Hub is a significant milestone in further enhancing our multi-hub strategy in the region. With four hubs in Asia Pacific - Hong Kong, Shanghai, Singapore and Bangkok - this links over 70 DHL Express Gateways located throughout the region. Together, these facilities reinforce our customer commitment to provide the most efficient international express connectivity between key markets in the region. 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."
The increased efficiency is achieved from the improved sorting speed and accuracy of the automated system, multi-dimensional tunnel scanners that accelerate barcode reading, and automated X-ray machines that scan packages up to three times faster than previous systems.
In addition, the facility is partially powered by solar energy, which supplies about 20 percent of the hub's total energy consumption. These automation systems also enhance productivity, enabling employees to focus on higher value tasks such as risk mitigation to prevent potential shipment delays, issues management, and additional security inspection.
The opening of the new facility is timely as DHL 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 percent, South Asia at 30 percent and Southeast Asia rose 25 percent. This facility is 33 percent larger than the previous hub, providing DHL with additional capacity to handle the growing shipment volumes for regional and international destinations.
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.