Secretary for Transport & Logistics Lam Sai-hung

October and November have been a fruitful season for aviation logistics services in Hong Kong. I have attended the opening ceremony of the third phase expansion of the DHL Central Asia Hub, which is the largest infrastructure investment project by DHL Express in the Asia-Pacific region, this Tuesday. In addition, the Kwo Lo Wan Premium Logistics Centre, developed by the joint venture led by Cainiao Network, was also completed and put into operation last month. These two major logistics facilities, along with the upcoming full operation of the Third Runway System next year, have significantly enhanced Hong Kong's capacity in handling air cargo, propelling the city to new heights as an international aviation and logistics hub.

One of three DHL Express’s global hubs

Located at the heart of Asia, Hong Kong is within a four-hour flight radius of most cities in the region, which is also home to the world's fastest-growing markets.

The DHL Central Asia Hub, rooted at Hong Kong International Airport for 19 years since 2004, is one of DHL Express's three global hubs, handling over 45% of their intra-Asia shipments and nearly 20% of global express shipment volumes. With the completion of its third phase expansion, the hub has become larger and faster. The total warehouse space has increased by 50% to 49,500 sq m. It can handle a maximum throughput of 125,000 shipments per hour, a 70% surge from before the expansion. When the hub is at its full capacity, its annual cargo handling capacity is expected to reach 1.06 million tonnes, a 50% increase from before the expansion. It is six times the shipment volume of when it was first completed in 2004.

The expansion project of the third phase was completed in March this year and has already been put into operation. After the opening ceremony on Tuesday, the Chief Secretary and I toured the hub and were briefed on its state-of-the-art technologies, including the automated material handling system, complemented by X-ray computed tomography scanning technology and automated sorting systems, which have doubled the speed of identifying suspicious items during the scanning process.

Hong Kong's third largest logistics warehouse - Kwo Lo Wan Premium Logistics Centre

The Kwo Lo Wan Premium Logistics Centre, the third largest logistics warehouse in Hong Kong, also commenced operations last month.

Jointly developed and operated by Cainiao Network, the logistics arm of Alibaba Group, China National Aviation Corporation (Group), and YTO Express, the centre covers an area of approximately 5.3 hectares with a gross floor area of 380,000 sq m. The premium logistics centre adopts the most advanced environmental standards and cutting-edge technology to cater to the high-growth cross-border e-commerce demands of global SMEs (small-to-medium enterprises). When operating at its full capacity, it is expected to bring a maximum of approximately 1.7 million metric tonnes of additional air cargo volume to Hong Kong International Airport annually.

Preparing for the Christmas peak season

With the commencement of these two major logistics facilities, Hong Kong is well-equipped for the traditional year-end peak season for Christmas goods. Next week, we have Black Friday after Thanksgiving, followed by Cyber Monday, then Christmas will just be around the corner. Different shopping platforms all over the world are already promoting their offers and discounts. With the rapid development of Hong Kong’s transport and logistics services, global commodities are just one click away. You may wish to take this opportunity to get yourself and your loved ones some gifts, and the deliveries would probably arrive in Hong Kong through one of these two major logistics centres! May I take this opportunity to wish logistics providers and enterprises a prosperous and fruitful Christmas season ahead.

Secretary for Transport & Logistics Lam Sai-hung wrote this article and posted it on his blog on November 18.