DHL Plans Large Terminal at Incheon, S. Korea

DHL, the air express distribution company, “is planning to build a large-scale freight terminal at Incheon International Airport by the end of 2005 for use as its Northeast Asian logistics hub, the Ministry of Construction and Transportation said Tuesday. The freight terminal project, recently approved by the ministry-affiliated Civil Aviation Safety Authority (CASA), will make DHL the first multinational company to build a regional logistics hub in South Korea. Lending further support to President Roh Moo-hyun government’s ambitions of turning South Korea into a hub of Northeast Asia, DHL is reportedly considering relocating its Asian headquarters here, government and company officials said. ‘DHL has recently asked to use 22,440-square meters of newly expanded areas at Incheon International Airport’s Cargo Terminal C,’ said a CASA spokesman, adding that relevant government approval was given immediately. Construction on the DHL terminal will begin in April 2004 with completion slated for the end of the following year. Incheon International Airport Corp. will be responsible for ground preparations while DHL is to pay for the entire construction costs valued at $20 million, he said. DHL is currently leasing 2,000 square meters at the airport’s cargo terminal for its freight transportation to major regional cities such as Dalian, Qingdao, Vladivostok, Khabarovsk, Ulan Bator, Guam and Saipan. DHL’s expanded freight terminal at Incheon, scheduled to open in 2006, will sharply expand its service coverage to include key southern Chinese cities, as well as Australia and Japan, officials at DHL Korea explained.