DHL Investing RM300 Mln On KL Gateway Facility

SEPANG, Oct 28 (Bernama) -- DHL Express has increased its investment in Malaysia with the launch of its new RM300 million Kuala Lumpur Gateway facility -- its largest local investment to-date.

The move is part of its strategy to enhance connectivity across Asia.

Previously, the company had invested RM13 million to set up its Prai Service Centre in the Batu Kawan Industrial Park, Penang, and RM11 million in the Malaysia Southern Gateway.

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DHL Express Malaysia and Brunei managing director (MD), Julian Neo Poh Choon said the new Kuala Lumpur Gateway facility will support Malaysia's booming import and export activities, in line with the increase in international trade.

"This new facility is three times larger and can handle four times the shipments compared to the previous premises.

“With this upgrade, we’re better equipped to support small and medium enterprises as well as multinational companies with their import and export activities in Malaysia," he said in his welcoming speech at the opening ceremony of the new DHL Express Kuala Lumpur Gateway today.

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The launch was attended by Transport Minister Anthony Loke Siew Fook, DHL Express Asia Pacific chief executive officer Ken Lee, and Raya Airways Group MD, Mohamad Najib Ishak.

Neo also highlighted that the new facility is DHL Express’s first Gateway facility in Southeast Asia with a fully automated sorting system.

“This facility can process up to 10,000 shipments per hour, speeding up transit and delivery times compared to the previous capacity of 2,400 shipments," he said.

Neo said that DHL Express aims to leverage Malaysia’s position as a regional logistics leader, adding that enhancing the nation’s role in global trade is part of the KL Gateway’s planning strategy.

“Alongside four other Gateways forming our local network, this facility enables seamless connectivity with major global trade flows, including the United States, China, Hong Kong, Japan, Singapore, Australia, Germany, and the United Kingdom.

“It represents a critical component in our international network, spanning over 220 countries and territories," he said.

Neo also noted that the facility’s development comes at an opportune time amid Malaysia’s positive trade outlook, with the KL Gateway expected to become the main trade operations hub for DHL Express in central Malaysia.

"Kuala Lumpur and Selangor collectively contributed RM3.3 billion in export value and RM7 billion in import value as of August this year.

“Malaysia is a key player in the electronics and electrical manufacturing sectors, and the industry's shift toward omni-sourcing is expected to drive continuous growth," he added.

In 2023, Malaysia jumped 15 positions to 26th place in the World Bank’s Logistics Performance Index, ranking among the best in ASEAN.

Meanwhile, the Kuala Lumpur Gateway serves as a critical link for facilitating goods movement between the Klang Valley and international markets, with two flights connecting it to the Central Asia Hub in Hong Kong and the South Asia Hub in Singapore.

Located at KLIA’s Terminal 1 Air Cargo facility, the Kuala Lumpur Gateway is one of five similar facilities in DHL Express Malaysia’s air and ground network.

DHL Express has 20 service centres, approximately 170 retail locations, over 300 delivery vehicles, more than 60 weekly flights, four aircraft, and a workforce of 1,300 people.

— BERNAMA