Two global logistics companies are setting up their Southeast Asia headquarters in Singapore to position themselves for the growing trade activity in the region that is set to formalize its economic integration by the end of the year.
DHL Express recently unveiled the blueprint of its EUR85-million (US$91 million) South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Center at Singapore Changi Airport that is scheduled to be operational by the first quarter of 2016.
The South Asia Hub joins DHL Express’ four other hubs in the Asia Pacific—Shanghai, Hong Kong, Bangkok, and Singapore—that link to over 70 DHL express gateways located throughout the region, said Jerry Hsu, CEO of DHL Express Asia Pacific.
Occupying a land area of about 26,000 square meters and a total floor area of over 23,500 square meters, the South Asia hub will be based in a 24-hour free trade zone at the airport that is managed by the Changi Airport Group. It features DHL’s first fully automated express parcel sorting and processing system in Singapore and South Asia.
Once completed, the facility can handle a cargo throughput of more than 628 tons per day at full capacity and process 14,000 shipments per hour, nearly triple the throughput of 225 tons per day and almost six times the processing speed of 2,400 shipments per hour at the current facility.
Yam Kum Weng, executive vice president, air hub & development, CAG, said: “The new facility, which has improved capabilities and three times more capacity than that of DHL’s existing facility, allows air express parcels to be shipped or transshipped within an hour.”
“Singapore has always been at the heart of DHL’s network in Southeast Asia and South Asia. Once the expanded South Asia Hub is completed, DHL will be able to support up to five times more flights in Singapore, further capitalizing on the country’s prime geographical location,” added the statement.
The latest development comes on top of a recent series of plans to bolster DHL Express’ network infrastructure in the region. This includes the Central Asia Hub in Hong Kong which has the region’s largest throughput, the North Asia Hub in Shanghai Pudong International Airport, and a new gateway in Tokyo slated for completion in 2016.
Ceva sets up new SEA HQ
On the other hand, Ceva Logistics recently opened its West Hub, its largest facility in Singapore and new headquarters for Southeast Asia.
The hub occupies 48,000 square meters of warehouse and office space, with more than 300 personnel serving multisectoral customers at the facility.
At the opening, Ceva’s CEO Xavier Urbain said the company is growing its footprint in Southeast Asia, with Singapore as a strategic hub in Asia and a conduit for world trade.
“This is an investment we are making in Asia to strengthen our presence and address the growth potential here. It is estimated that by 2020, more than 50% of the world’s middle income will come from Asia,” he said.
At the same event, Ceva announced the launch of its City of Energy in Singapore located at the West Hub. The City of Energy is a dedicated hub for the warehousing, cross docking, flow management and handling of oil and gas products and services for the energy sector.
The energy hub, covering a total warehouse space of 26,000 square meters and over 5,000 square meters of open yard space for energy customers, is located close to Jurong port and major highways. The City of Energy will serve CEVA’s energy sector customers, many of whom use Singapore as a regional base for their oil and gas operations in Asia.
