DHL, the world's leading express and logistics company, officially broke ground for its new nerve centre at Incheon International Airport.

The DHL Express Incheon hub will serve as a consolidation and distribution centre for Korea and other markets, such as Mongolia, Guam, Saipan, and Far East Russia.

It will also provide customers with more intra-regional and inter-continental connections to the United States and Europe.

Dan McHugh, CEO of DHL Express-Asia Pacific, said DHL has chosen to invest in the Incheon facility because the airport has strong regional and inter-continental connections, allowing for improved transit times to key cities around the world.

He said the Incheon facility is an important component of DHL Express' network. It is well-placed to ensure that DHL provides the highest quality service for customers.

The DHL Express Incheon hub is an investment worth almost US$50 million and brings DHL's total investment in Korea to more than $100 million since 2001. This new state-of-the-art facility will be more than five times larger than the current DHL Express facility at the airport.

Backed by a strong inter-continental and regional air network, Incheon International Airport has seen a steady increase in air cargo and projects a two-fold increase in its handling capability from 2.5 million tonnes in 2005 to 4.5 million tonnes by 2010.

Air cargo flows from the surrounding areas recorded almost a 40 percent year-on-year increase in tonnage in 2006.

Key initiatives by the Korean government, such as the Free Trade Agreement with the United States and open skies agreements are positive trade indicators for the express industry, the company said.