DHL Global Forwarding, the air and ocean freight operator of Deutsche Post DHL, said Thursday that it has opened a global logistics hub in Korea’s southern port city of Busan ― the eighth of its kind globally and first in Northeast Asia.

The Bonn, Germany-based company said it has injected 500,000 euros ($627,000) in completing the Busan Multinational Gateway that will reduce transit times by up to seven days through new 13 direct services.

“Busan’s location between Japan and China makes it an ideal transshipment point for cargo moving to the Americas from North Asia,” said Kelvin Leung, CEO of DHL Global Forwarding Asia Pacific, in a press conference at a Seoul hotel. 

“According to some industry reports, trade between Asia and North America will grow almost 5 percent in 2013 and over 5 percent in 2014. The Busan launch puts us in prime position to take advantage of the growth potential.”

The regional chief also pointed out that the Korean government’s recent initiative to further advance the logistics industry and improved efficiency in related policy also played an important role for the company to select Busan as the new destination.

The new opening comes as the DHL is expanding its presence in Asia, where the company said logistics demands were soaring following increased business integration in the region and free trade agreements.

Previously, shipments in Korea, Japan and China used to be routed through another multinational gateway in Hong Kong. The Busan hub will control shipments from the neighboring countries and transport them to eight North and South American countries.

In the coming year, the company also plans to launch another 20 services to cover more shipments and regions.

By Lee Ji-yoon (jylee@heraldcorp.com)