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DHL invests $35 million in Hong Kong

Express delivery and logistics company DHL is investing $35 million in Hong Kong to capitalize on the continued growth of the region’s trade.

The investment includes opening a facility that will extend DHL’s ground-handling capacity about 20 percent as well as administrative office relocations to bolster operational synergy.

“The $35 million investment in Hong Kong is a strategic move to boost our operational capabilities,” said Scott Price, CEO of Asia-Pacific for DHL Express. “DHL believes that it is of paramount importance to continuously enhance our handling capacity and infrastructure in order to capitalize and meet anticipated growth.”

This investment raises DHL’s total outlay in Hong Kong to $645 million, which includes a $210 million Central Asia SuperHub. Hong Kong’s position as the centerpiece of DHL’s hub-and-spoke network has been reinforced by the company’s $400 million investment in Air Hong Kong, a joint venture with Cathay Pacific that feeds Asia-Pacific cargo into Hong Kong for consolidation and transit purposes.

“This is the fifth consecutive year that DHL has recorded double-digit growth in Hong Kong,” Mr. Price said. “The investment program brings us close to $1 billion in our commitment to the greater China area to position us for the opportunities which abound in this region.”

Hong Kong International Airport statistics show that Hong Kong’s air cargo rose to 3.58 million tons in 2006, up 5.2 percent from 2005.

The new Kowloon South Service Centre will extend DHL’s ground-handling capacity in Hong Kong and supplement its two existing facilities, which are near capacity.

These facilities sort and redistribute incoming shipments for delivery to local consignees and consolidate outgoing shipments for dispatch to DHL’s Central Asia SuperHub at Hong Kong International Airport for uplifting to DHL’s dedicated freighters. The center will open by second-quarter 2007, Mr. Price said, raising DHL’s ground-handling capacity to 45,500 shipments per day.

DHL’s air express cargo-handling capacity also will increase when the expansion of its $210 million Central Asia SuperHub is completed in the second half of 2007. CAS, already the largest DHL hub in the region, will be fully operational in 2008 with a capacity of about 40 million air shipments a year.

DHL, Plantation, FL, also launched a branding initiative throughout Asia Pacific called “All the Way.” The campaign, already rolled out in key markets including Hong Kong, reinforces DHL’s tagline of going “All the Way” for customers by showing that DHL is committed to playing an integral role in their success.

The campaign showcases DHL’s quality service experience such as the DHL Quality Control Centers, launched in Hong Kong last year, and the 24-hour customer service center.

DHL’s Asia-Pacific brand campaign, created with assistance from Ogilvy & Mather, combines print and TV ads, outdoor placements and the campaign’s official Web site at www.allthewaydhl.com.

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