DHL, the world’s leading express and logistics company, today announced a new dedicated flight connecting Qingdao and Hangzhou with DHL’s Central Asia Hub in Hong Kong.  The move will increase the economic connectivity of the three cities and accelerate the inbound and outbound express business in Zhejiang and Shandong provinces.  DHL has already started gateway operations at the Hangzhou International Airport.  These latest investments by DHL totaled about US$40 million, and are part of the planned US$110 million investment in its China business in the next few years, which DHL announced in February this year.

The new ten-time weekly flight allows DHL to better meet the increasing demand for international express and logistics services and capabilities due to the rapid economic development in these regions.  The new flight, operated by a Yangtze River Express Airlines 737-300 freighter aircraft with a payload capacity of 13 tons, marks Hangzhou Airport’s first international air express cargo connection.  The flight, together with DHL’s new 2,000 square meter Hangzhou Gateway, will boost the economic development in booming cities like Hangzhou, Ningbo and Qingdao, and further strengthen DHL’s market leadership in China.

Qingdao is the leading city in Shandong Province, which is a major force behind the economic development in the Bohai Sea region.  In 2006, Qingdao ranked as one of the top 10 leading import and export cities in China.  Since late 2005, with the liberalization of China’s express industry, Qingdao has seen rapid growth in the national and international express business.

Currently, DHL-Sinotrans has developed the largest air express services network in China with four international gateways(2) - Beijing, Guangzhou, Shanghai and Shenzhen - as well as eight additional direct flight gateways: Qingdao, Dalian, Chengdu, Wuhan, Xiamen, Fuzhou, Xi’an (outbound only) and Hangzhou.

With the launch of the new flight and gateway and the new 24-hour clearance service provided by Hangzhou Customs, DHL-Sinotrans’ customers in the Yangtze River Delta region and Shandong Province will now enjoy shorter time-to-market due to later pick-up and earlier delivery times for their shipments. The pick-up cutoff time will be five hours later on average, making it the most competitive in Zhejiang.
In February 2007, DHL announced that it will invest over US$110 million in its China business in the next few years. This continued investment will further strengthen its market-leading position in anticipation of continued strong growth. This investment is in addition to the nearly US$1 billion that DHL has already invested in the Greater China region, which accounts for over half of its investment in Asia Pacific from 2001 to 2006.