DHL expands intra-Asia network via K-Mile

DHL Express has broadened its cargo operations to various Southeast Asian destinations by increased existing freighter frequencies and partnering with Thailand’s K-Mile Air.

On Nov. 7, DHL Express, owned by Deutsche Post DHL, boosted the frequency of flights between Hong Kong International (HKG), Penang International (PEN) in Malaysia and Tan Son Nhat International (SGN) in Ho Chi Minh City, Vietnam, from five to six days per week. This extra weekly flight, using an A300-600F, has raised DHL’s freight capacity on the routes by 20 percent.

Meanwhile, under the DHL agreement, K-Mile now flies its newly converted 737-400 freighter – it’s sole aircraft – five times a week from Bangkok’s Suvarnabhumi Airport (BKK) to HKG and Noi Bai International (HAN) in Hanoi, Vietnam.

According to Jerry Hsu, chief executive of DHL Express Asia Pacific, said the new K-Mile route shortens the transit time for intra-Asia shipments to and from Hanoi to a single day. K-Mile is part of the Switzerland-based Farnair Group, which is expected to be purchased by the Ireland-based ASL Aviation Group by the end of 2014.

DHL expects freight demand on these routes to be strong, he said, given the International Monetary Fund’s robust GDP forecast of 5.6 percent growth for Vietnam, 3.7 percent for Hong Kong and 2.5 percent for Thailand in the next year.

DHL Express Asia Pacific currently operates about 20 dedicated aircraft and four main air hubs in the Southeast Asia region. In September, the express carrier opened a $10 million, 26,900-square-foot processing facility at SGN in Ho Chi Minh City, the largest of its kind in Vietnam.