DHL to pump in US$30m to expand and update US operations
A SUBSIDIARY of major logistics company Deutsche Post DHL Group, DHL eCommerce Solutions, plans to invest approximately US$30 million this year to expand and modernise its operation in the United States
A SUBSIDIARY of major logistics company Deutsche Post DHL Group, DHL eCommerce Solutions, plans to invest approximately US$30 million this year to expand and modernise its operation in the United States.
The investment includes purchasing its first fully owned move-in-ready distribution centre in the US and temporary distribution centre space in Chicago, Los Angeles, and Avenel in New Jersey. Due to anticipated 2020 holiday peak volume increases (November-December 2020), automation equipment investments are also planned. At the end of the third quarter and throughout the fourth quarter, the company is hiring 900 new distribution centre workers to support its growth.
DHL eCommerce Solutions Americas CEO Lee Spratt said: 'It is an extremely proud moment for us to move to our first fully-owned US building located in Atlanta. Our expansion plans have been in the works for some time, but with this year's consistent surge in e-commerce volumes, we understood the urgency of finalising our plans to have a permanent home in the Atlanta area and additional space in strategic metropolitan US locations.'
The 150,000 square foot building located 20 miles from the Atlanta Hartsfield Airport has access to some of the main thoroughfares for speedy air and ground parcel transportation. The distribution centre will process domestic lightweight parcels. In addition to the new building, the initial investment will include a sorting machine that can process 20,000-30,000 parcels per hour, reports AJOT.
'At DHL eCommerce Solutions, we expect to see 30-50 per cent more e-commerce volumes this holiday peak season compared to last season, so we have made the necessary investments in our footprint, machinery, and people to be ready to serve our customers and make this season a success,' said Mr Spratt.