Release Date:
Release ID: 906

DHL invests US$50 million in expanding Express gateway at Incheon International Airport - Sets new industry benchmarks with fully automated sorting system, X-ray, and weighing devices for conveyable shipments

DHL, the world’s leading express and logistics company, today opened its US$50 million state-of-the-art DHL Express Incheon Gateway. Located within the free trade area of Incheon International Airport, the facility spans 20,000 square meters and is more than five times larger than the previous DHL Express facility in Incheon International Airport.

Press Release

The DHL Express Incheon Gateway will serve as a consolidation and distribution center from South Korea to markets such as Mongolia, northern China and the Russian Far East. In addition, the gateway will further strengthen the intercontinental and inter-regional service connecting South Korea with the USA and Europe.

Dan McHugh, Chief Executive Officer, DHL Express Asia Pacific, said, “Asia remains a key growth area with strong business opportunities in the current economic climate. Between 2004 and 2008, our international express volumes in South Korea have grown by over 50%. As we expect to maintain our growth momentum, our investment in this facility is a strategic move which ensures that DHL is well positioned to tap into the growing demand and Incheon’s increasing role as a logistics center in Asia. With a vastly increased handling capacity, the Incheon gateway will also deliver greater time savings for our customers.”

Backed by a strong inter-continental and regional air network, Incheon International Airport has seen a steady increase in air cargo and is projecting a 67% rise in its handling capability from 2.7 million tonnes in 2005 to 4.5 million tonnes by 2010[1].

Deok Mo JEONG, Vice-President of Incheon International Airport Corporation, said, “DHL’s investment reflects the company’s conviction in Incheon’s strategic role in the region and Incheon Airport’s worldwide quality infrastructure. I’m very happy with DHL’s decision to invest in the facility.”

The opening ceremony was officiated by guest of honor, Mr. Sang Soo AHN, the mayor of Incheon Metropolitan City, who was accompanied by Mr. Deok Mo JEONG, Vice-President of Incheon International Airport Corporation and Mr. ByungOk Kang, Director-General for Airport Facilities Bureau of Seoul Regional Aviation Administration.

With the technologically-advanced Incheon gateway, DHL will improve its productivity and strengthen its customer service, which are the first-of-its-kind in the express industry in South Korea. Equipped with a fully-automated sorting system for parcels that includes automatic weight-measuring and X-ray devices, the gateway has the maximum capacity to sort 13,500 pieces per hour, a fivefold increase from that handled at the previous facility. With a six-camera tunnel embedded in the sorting system, the weight and size of each shipment is captured and transmitted to the Shipment Control Library while air waybill details are recorded in the sorting system.

In addition, the DHL Express Incheon Gateway boasts the following features to enhance operational efficiency:

- a sheltered drive-in facility with 25 loading and unloading bays which enables operations to remain unaffected even in inclement weather

- 11 extendable conveyors for loose loading operations which improves processing time and truck utilization as shipments are loaded/unloaded directly into/from the truck

- two singulator systems measuring 21 meters long arrange parcels into a single file to enhance the accuracy of the automatic sortation, distribution and weighing of shipments handled in the gateway

- four shoe sorters which enable shipments to be distributed according to the sort plan controlled by a sophisticated IT system have also been installed to ensure each shipment is automatically sorted based on its intended destination

– sorting software specially designed for DHL automatically sorts imported and exported shipments to facilitate customs processes as well as inbound and outbound procedures

As the integrity and security of customers’ shipment are a key priority at DHL, the market leader has scored a world’s first with the installation of automatic X-ray machines in the Incheon gateway. The three sophisticated X-ray machines feature the latest technology that enables DHL to effectively detect any suspicious element in any shipment during the screening process and can process up to 5,400 shipments per hour.

Furthermore, the Incheon gateway houses a 24/7 Quality Control Center (QCC) which is equipped with the Quality Shipment Monitoring System (QSMS), a global shipment management system that enables DHL to monitor shipments in real-time. QSMS has the unique capability to alert analysts at DHL Hubs, Gateways and Service Centers in the event of potential delays or changes to the status of shipments. The QCC operates round-the-clock and is connected to DHL’s network across 42 countries in Asia Pacific.

This real-time monitoring of individual shipments door-to-door allows enhanced customer service as it enables DHL to proactively identify potential problems and recommend rectification strategies before the situation is exacerbated.

“Our DHL Incheon Gateway is a vital link for our network of three hubs and over 50 Express gateways in the region,” said Stephen Fenwick, Senior Vice President, Operations, DHL Express Asia Pacific. “Our robust network is backed by an extensive Asia Air Network, which includes more than 20 aircraft covering 30 destinations, and utilizes over 500 commercial flights per day in Asia Pacific. DHL’s regional hubs and gateways are interconnected with key business centers and cities across Asia Pacific, providing customers with overnight services across the region.”

[1] Source: Incheon International Airport Corporation


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