DHL finalizes Singapore expres facility buyout

Logistics Insight Asia, 1/1/2008

DHL has completed the acquisition of the DHL Express Singapore Hub facility from Singapore Airport Terminal Services (SATS) for S$38 million (US$26.6 million). This is the largest air express transshipment facility in Changi Airport. DHL hasleased it since 2001.

Located at the SATS Express Courier Center 2 (ECC2) within the Changi Airport free trade zone, the DHL Singapore Hub occupies about 10,000 square meters of the total gross floor area of about 18,000 square meters. The facility has a peak processing of 5,300 shipments per hour and is expected to increase its cargo handling capacity to more than 11,000 shipments per hour in 2011. DHL Express Singapore Hub handled a record kilo volume in the year 2007, and is expected to exceed 2006 performance by 12 percent.

The company says the acquisition underscores DHL’s commitment to the logistics industry in Singapore and the Asia Pacific. “The purchase of the Singapore Hub building from SATS cements DHL’s market leadership position in Southeast Asia, and enhances our role as a trade facilitator for our customers, providing faster connection and superior delivery services,” said Stephen Fenwick, DHL Express’ Senior Vice President for Operations in Asia Pacific.

Clement Woon, President and CEO, SATS, said, “SATS and DHL have had a long standing partnership. ECC2 was in fact purpose-built by SATS for DHL’s Singapore Hub operations. The sale of this building underscores our continued commitment to help DHL achieve their goals in Singapore. While SATS ceases to be a landlord, we will continue to provide cargo handling services to DHL.”