DHL Express invests in auto sort gateway at KLIA

• Part of company’s expansion plan to meet the demands of growing logistics sector
• Gateway will boost shipment processing capacity by more than 400% when ready in 2023

DHL Express announced that it will invest US$48 million (RM200 million) to build its first fully auto sort gateway at the Kuala Lumpur International Airport (KLIA). 

In a statement, DHL claimed this is the largest investment in Malaysia to date and is part of the company’s expansion plans to meet the demands of the growing logistics sector here.

Isham bin Ishak, secretary general, Ministry of Transport Malaysia said, “We are pleased to see DHL Express 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.” 

“DHL Express’s investment also represents an endorsement of confidence in Malaysia and a testament to the country’s potential as the preferred logistics gateway in Southeast Asia,” said Isham. 

Ken Lee, chief executive officer, DHL Express Asia Pacific said the expansion demonstrates the importance of Malaysia in DHL Express’ Asia Pacific network, and our 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,” Lee said.

Located at the KLIA Air Cargo Terminal 1 (KACT1), the 13,422 square meters gateway will nearly triple the size of DHL Express’ current facility, also located at KLIA.

It will increase the shipment processing capacity by more than 400%, DHL claimed.

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 Express’ Southeast Asia network after Singapore, the company said.

“In recent years, even prior to the pandemic, DHL Express has seen a significant rise in import and export volumes in Malaysia,” said Julian Neo, managing director of DHL Express Malaysia and Brunei.

“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.

Neo added that 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.

DHL’s new Kuala Lumpur Gateway will be equipped with state-of-the-art technologies and designed for optimal shipment processing efficiency, including a high-speed dimensioning and weighing system. 

In line with DHL Express’ commitment to the security of customers’ shipments, the gateway will be equipped with more than 250 closed circuit television and high-speed X-ray screening systems, DHL said.

A 500 kilowatt-peak solar system and energy-efficient lighting systems will also be outfitted at the gateway, as part of the company’s commitment towards achieving its zero emissions target by 2050, it added.

The new gateway will see two dedicated aircrafts flying five times a week to and from Hong Kong S.A.R, and four times-a week to and from Singapore, the company said.

Presently, DHL Express has six international gateways in Malaysia, which are in Penang, Johor Bahru, Kota Kinabalu, Kuching, Subang, and Kuala Lumpur.