DHL increases cargo capacity by 30% with new A300 service in Penang
DHL Express has increased its cargo capacity by 30 percent by offering a new A300 freighter service in Penang, Malaysia.
The new A300 service, which operates 5 times weekly to Hong Kong, connects to DHL’s unique non-stop service from Hong Kong to Los Angeles (LAX) meaning customers in Penang will be able to utilise DHL’s one-day intercontinental express delivery service from Penang to all of the West Coast of the US.
The highly urbanized and thriving island of Penang plays an important role in Malaysia’s external trade as it is well integrated in the global manufacturing supply chain. Almost 61 percent of the exports go to China, United States, Hong Kong, Japan and Germany while 63 percent of imports come from China, United States, Singapore, Japan and Germany.
In 2011, the state attracted RM14.04 billion of Foreign Direct Investment (FDI) and has been an important backbone to the economy. This places DHL Express’ new A300 freighter service in a prime position to complement Penang’s vibrant trade activities.
“Penang is the top three most developed and industrialized state in the country and is the hub for the Northern Corridor Economic Region (NCER). The decision to add capacity to the route reflects DHL’s commitment to enhance our services offerings so that our customers will continue to enjoy efficient and reliable express and logistics services,” said Yasmin Aladad Khan, Senior Vice President, DHL Express Southeast Asia.
“The importance of Penang is evident from its contributions to the country’s overall gross domestic product. The introduction of the new freighter comes at an opportune time as it will see the A300 providing extra 30 percent cargo capacity and businesses can ride on the growing demands to expand their footprint overseas. As a new generation aircraft, the A300 not only offers greater reliability but helps us achieve greater per tonnage carbon efficiency as compared to the B727 that we are replacing. This underscores the company’s commitment towards ensuring a sustainable environment,” commented David Ng, Managing Director, DHL Express Malaysia and Brunei.
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany