DHL Express is investing S$140 million (US$101.3 million) to develop its South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Centre at Singapore's airport.

DHL Express has been working with Changi Airport Group (CAG) on the expansion since 2013, and will move its South Asia Hub to bigger premises at CAG, a 24-hour free trade zone.

The new facility will help bolster the express firm's network connectivity and better support regional businesses operating in and out of the Lion City. The investment will be the largest so far made by the company in infrastructure in Singapore.

"The South Asia Hub reinforces DHL's multi-hub strategy to strengthen its market position in Asia with major investments in infrastructure and services," a company statement said.

Occupying a land area of 26,200 square metres and a total floor area of 23,600 square metres, the hub will feature the first fully automated express parcel sorting and processing system in Singapore and South Asia.

Upon completion, which is scheduled for the first quarter of 2016, the facility will be able to handle a cargo throughput of 628 tonnes per day when at full capacity and process shipments at the speed of 14,000 shipments per hour.

In comparison, the manual processing system in the current facility handles up to 225 tonnes per day at a speed of 2,400 shipments per hour, a company statement distributed by PRNewswire said.

Said Changi Airport vice president Yam Kum Weng: "The new facility, which has improved capabilities and almost three times more capacity than that of DHL's existing facility, allows air express parcels to be shipped or transhipped within an hour."

Said Asia Pacific DHL Express chief Jerry Hsu: "With the continued growth of the Asia Pacific economies, the South Asia Hub will provide the necessary logistics capabilities to support the growth of trade within the region."