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2015/05/30/(Sat)

DHL invests $108 million in its Americas Hub [Integrator]

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Expansion needed to meet expected international volume growth
Provides additional gates to handle more aircraft, new equipment to enhance sorting/loading capacity and warehouse space

DHL it is investing $108 million to expand its Americas hub facility at the Cincinnati / Northern Kentucky airport (CVG) to meet the demands of continued growth in international e-commerce and global trade. The expansion will provide more gates to accommodate additional aircraft, warehouse space and new equipment to provide more capacity for sorting shipments as well as unloading and reloading planes.

"This multi-million dollar investment underscores the DHL commitment to the U.S. market and the integral role that our hub here plays in connecting the Cincinnati-Northern Kentucky region to our vast global network," said Stephen Fenwick, CEO, DHL Express Americas. "The expansion and service enhancements from this investment will provide additional infrastructure and efficiency. This in turn will support the continued growth in international shipments that we're seeing as well as add to the economic well-being of this region."

The CVG hub, one of three DHL global hubs, connects the United States to the DHL global network spanning Asia, Europe and the Americas. Processing approximately 46 million international shipments annually, the CVG hub handles shipments bound for the U.S., Canada, Mexico and Latin America. It also connects nearly 100 service centers, gateways in Los Angeles and New York, and a hub in Miami to more than 220 countries and territories around the world. DHL's two other global hubs are in Leipzig, Germany and Hong Kong.

With this new investment, DHL will have invested $280 million in the CVG hub since establishing its U.S. international operations center at the Cincinnati / Northern Kentucky airport in 2009. Staffing has also grown, from 1,600 in late 2009 to approximately 2,000 currently.

DHL has invested significantly in its global express network in recent years, in order to reinforce its leading position in international time definite delivery. In the last 18 months, the company has announced major investments, including $200 million to double its European hub in Leipzig, $85 million in a new South East Asia Hub in Singapore, and $177 million expansion program in the Middle East and North Africa. DHL is also modernizing its air fleet, introducing more efficient freighter aircraft with increased capacity to bolster connectivity for its global customer base.

The various expansion and equipment projects covered by this latest investment in the Cincinnati hub should be completed in late 2016.

Posted at 07:41

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