DHL has opened its North Asia hub in Shanghai Pudong Airport, the company announced yesterday. Li Derun, president of the Shanghai Airport Group, revealed that Pudong Airport is expected to become the world's biggest cargo hub in 2015 with greatly improved transfer functions.

According to DHL, the new facility, which DHL invested a total of US$175 million, covers an area of 88,000 square meters. The hub can process up to 20,000 documents and 20,000 parcels per hour.

Frank Appel, CEO of DHL, said that the Chinese market is a highlight of DHL's development blueprint by contributing half of all revenues in the Asia-Pacific region, which has accounted for nearly 20 percent of its global revenues. DHL plans to invest US$1.8 billion this year, with more money going to Asia, especially the Chinese market.

At yesterday's opening ceremony, Li Derun said that the fright volume in Pudong Airport in 2011 already ranked third highest in the world. It is estimated that an increase in the freight transfer ratio of up to 16 percent from the current 5 percent would rank the airport the top in the world. Shanghai Airport Group is shifting its reliance on hub functions and natural growth to growth in transfer functions.

Actually, logistics giants have already noticed the strategic position of Pudong Airport and have taken action. FedEx just finished expanding its port operating center in Pudong Airport less than two weeks ago. Earlier, UPS, another logistics giant, invested US$125 million in building an international transfer center in Pudong Airport.

Currently, a plan to build more freight stations in the west freight area is under discussion by Shanghai Airport Group and several companies, including FedEx and China Cargo Airlines under China Eastern Airlines. The No 3 freight station in the western area has been under construction since June 28 this year.