DHL Express announces KRW 175 billion (�131 million) expansion for Incheon Gateway

• DHL Express has signed a concession agreement with
  Incheon International Airport Corporation to expand its Gateway
• New expansion is the largest DHL Express investment
  in South Korea, catering to rising demand in regional e-commerce trade
• Investment
  set to increase gross floor area by almost 200% and total handling volume by about 160%

SEOUL, SOUTH KOREA�- Media OutReach - Oct 15, 2019 – DHL Express, the world’s
leading international express service provider, today signed a concession agreement with the Incheon International Airport
Corporation to implement its largest investment in South Korea to-date – a
KRW175 billion (€131 million) expansion plan for its gateway in South Korea.

 

John Pearson,
CEO, DHL Express said, “Our quality and speed are crucial for our customers and
the main pillars of our growth around the world. 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.”

 

Ken Lee, CEO, DHL Express Asia
Pacific 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 US$2.5 trillion[1]
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.”

 

The expansion
of Gateway, located next to Incheon International Airport — currently the
world’s fourth busiest cargo handler[2] – brings DHL Express’
commitment for this strategic hub to approximately €161 million in total. Since the opening of its Gateway in 2008, DHL Express
has seen a growth of over 45% in shipment volume, indicative of the growing role which the Gateway
plays in global and intra-regional trade. 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
meters from the current 20,000 square meters — an increase of almost 200%. It will also be equipped with the latest
technology for faster, more secure and efficient delivery handling processes.

 

ByungKoo Han, Country Manager of DHL Express
Korea said, “The expansion plan is an important milestone for us and testifies to our
long-term commitment to South Korea. With one of the world’s highest rates of
online shopping[3],
and its trajectory to become the world’s third-largest e-commerce market after
China and the United States by 2023[4], this Gateway expansion will
create the foundation for e-commerce businesses to expand both locally and
across the Asia Pacific region.”

 

This investment also covers technical upgrades including fully-automated
X-ray inspection machines, a four-kilometer 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 almost 160% — equipping it to service demand from some of the region’s
fastest-growing economies. Aligned to Deutsche Post DHL Group’s mission of net zero
logistics-related carbon emissions by 2050, the facility will also incorporate
a range of ‘green’ features such as the use of solar power and energy-efficient lighting systems to achieve CO2 reduction of up to 1,500
tons per year.

 

When completed in Q2 2022, the Incheon
Gateway will be DHL Express’s
largest gateway in Asia Pacific. Alongside
more than 160 customer touch points
in the country, DHL Express is well-poised to meet customers’ needs in Korea.

50 Years DHL

In 2019 DHL is celebrating 50 years since the
company’s founding by three entrepreneurs in San Francisco in 1969. DHL began
as a disruptor to the traditional delivery industry, circumventing bureaucracy
with an innovative new service to deliver documents by air overnight. Since
then, DHL has grown into a globe-spanning family of DHL companies with about
380,000 employees in over 220 countries and territories that covers the entire
spectrum of logistics and supply chain services. DHL’s customer-centricity and
can-do culture have fueled five decades of innovation — from the DHL 1000, one
of the first word processing computers in the world, to using the purpose built
StreetScooter, an environmentally friendly delivery vehicle powered by an
electric drive and developed by Deutsche Post DHL Group. With the Mission 2050 commitment
to reach zero group-wide emissions by 2050, DHL is continuing to be a
trailblazer in the logistics industry.

DHL — The logistics company for the world

 

DHL is the leading global brand in the logistics industry. Our DHL family
of divisions offer an unrivalled portfolio of logistics services ranging from
national and international parcel delivery, e-commerce shipping and fulfillment
solutions, international express, road, air and ocean transport to industrial
supply chain management. With about 380,000 employees in more than 220
countries and territories worldwide, DHL connects people and businesses
securely and reliably, enabling global trade flows. With specialized solutions
for growth markets and industries including technology, life sciences and healthcare,
energy, automotive and retail, a proven commitment to corporate responsibility
and an unrivalled presence in developing markets, DHL is decisively positioned
as “The logistics company for the world”.

 

DHL is
part of Deutsche Post DHL Group. The Group generated revenues of more than 61
billion euros in 2018.