SEBERANG PERAI, May 17 — Leading international express service provider, DHL Express, opened a new RM13 million facility in Batu Kawan here today as part of its expansion in Penang.

The new Prai service centre, which is five times the size of its previous location, will improve shipment processing capacity by 170 per cent.

DHL Express Malaysia and Brunei managing director Julian Neo said e-commerce shipment volumes continue to remain high despite the reopening of the retail sector.

He said the new expansion includes a high-speed sorting system capable of handling up to 975 pieces per hour.

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“This ultimately improves shipment processing capacity by 170 per cent for the more than 1,500 parcels and documents bound for and from the facility’s busiest air routes, namely the United States, Australia, United Kingdom, Singapore and Germany,” he said in his speech at the opening the new service centre.

“The boom in online shopping, social media and express shipping led to record increases in our international inbound and outbound volumes,” he added.

He said the new service centre occupies almost 2,400 square metres of warehousing and office space.

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“Through this upgrade, we can deliver faster transit times and better serve our customers in mainland Penang, Perlis and Kedah,” he said.

He added that the facility is equipped with a state-of-the-art solar panel system and energy-efficient infrastructure that is expected to reduce greenhouse gases by 26.9 per cent.

Neo said the new centre will serve as a major facilitator of global supply chains and help homegrown brands to tap into the export market.

“With the bigger and better Prai Service Centre, our customers are better positioned to leverage the ongoing growth of B2B and B2C e-commerce,” he said.

Penang Chief Minister Chow Kon Yeow, who officiated the opening of the new centre, said the logistics industry is critical to the global supply chain.

“It is the logistics industry that drives the economy during the pandemic,” he said.

He said DHL Express’ expansion demonstrates the confidence of multinational corporations in the state as a sustainable investment destination.

“DHL Express’ RM13 million investment in the facility will help to boost our country’s infrastructure competitiveness,” he said

He said the new centre will be able to capitalise on the thriving e-commerce industry where more businesses are going online to ensure business continuity.