DHL Express to expand Incheon Gateway
Firm will spend US$150 million to expand South Korean gateway
16 Oct 2019 | The Asset

DHL Express has signed a concession agreement with the Incheon International Airport Corporation to implement its largest investment in South Korea to date - a 175 billion-Korean-won (US$150 million) expansion plan for its gateway in South Korea.

Ken Lee, CEO, DHL Express Asia Pacific says, "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 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 - brings DHL Express' commitment for this strategic hub to approximately 161 million euros (US$177.7 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, says, " With one of the world's highest rates of online shopping, and its trajectory to become the world's third-largest e-commerce market after China and the United States by 2023, 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. 

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