28 October 2021
DHL Express has set plans to invest RM200 million to build its first fully auto-sort gateway at the Kuala Lumpur International Airport (KLIA).
In a statement today, the international express service provider said this could be the largest investment in Malaysia to date, part of the company’s expansion plans to meet the demands of growing logistics sector here.
DHL’s new Kuala Lumpur Gateway will be equipped with new technologies and designed for optimal shipment processing efficiency, including a high-speed dimensioning and weighing system.
The gateway will have more than 250 closed-circuit television and high-speed X-ray screening systems in line with the company’s commitment to enhance the security of customers’ shipments.
Additionally, a 500 kilowatt-peak solar system and energy-efficient lighting systems will be outfitted at the gateway, as part of its commitment to achieving its zero emissions target by 2050.
The new facility will also see two dedicated aircrafts flying five times a week to and from Hong Kong and four times a week to and from Singapore.
Presently, DHL has six international gateways in Malaysia, namely Penang, Johor Bahru, Kota Kinabalu, Kuching, Subang, and Kuala Lumpur.
The company held a groundbreaking ceremony today to mark the commencement of the gateway construction, which is due to complete by the first quarter of 2023.
The even was jointly officiated by Transport Ministry secretary-general Datuk Isham Ishak and DHL Express Malaysia and Brunei managing director Julian Neo.
“We are pleased to see DHL capitalising on Malaysia’s strategic location and good connectivity through the planned Kuala Lumpur Gateway, which bodes well in our quest to turn Malaysia into a transport and logistics hub in the region by 2025,” he said in a statement today.
He said DHL’s investment also represented an endorsement of confidence in Malaysia and a testament to the country’s potential as the preferred logistics gateway in Southeast Asia.
Neo said DHL saw a significant rise in import and export volumes in Malaysia in recent years, even before the Covid-19 pandemic.
“The fully auto-sort gateway will enable us to manage the increasing growth of shipment and parcel volume driven by the rise of cross-border e-commerce, and in turn, help us to continue meeting Malaysian consumers’ ever-growing demand for efficient logistical services,” he said.
“The gateway will play a key role in supporting our continued focus to position Malaysia as a key logistics player within the region and will further strengthen Malaysia’s link to the global logistics network,” said Neo.
DHL Express Asia Pacific chief executive officer Ken Lee said the expansion demonstrated Malaysia’s importance in its Asia Pacific network and the company’s continued confidence in the country.
“The new Kuala Lumpur Gateway will strengthen our logistics capabilities to support the growth of trade in Southeast Asia as it occupies a strategic position along key trade lanes between Malaysia and countries like Singapore, Taiwan, Hong Kong, and China,” he said.
Located at the KLIA Air Cargo Terminal 1 (KACT1), the 13,422 sq m gateway will nearly triple DHL’s current facility’s size, also located at KLIA.
It would also increase the shipment processing capacity by more than 400 per cent.
The facility will be equipped with an automated sort system that can handle 10,000 packages per hour, 24 hours a day, compared to the current 2,400 packages per hour.
This will be the second auto-sort facility in DHL’s Southeast Asia network after Singapore.