DHL investing $290m in the US and the Americas

posted by Ken Wood @ 3:08pm, Monday, November 21st, 2016

As reported by Post & Parcel:

DHL Express has outlined its investment plan for the United States and the Americas.

This includes $185m of investment earmarked in 2016 and 2017 for developing infrastructure, technology, and people in the US; and another $105m to support its growth plan in key countries in the Americas region including Mexico, Canada, Brazil, Chile and Peru.

“DHL Express is continuing its strong progress in the US,” explains Ken Allen, member of the Board of Management of Deutsche Post AG, and CEO, DHL Express. “As part of our focus on international express shipping and our commitment to continually improving customer service, we are directing our investments toward upgrading our facilities, expanding our staff and providing them with the technology they need to enhance productivity and to be more efficient.”

In a statement sent to Post & Parcel, the company said: “DHL has already completed a portion of the $108 million investment project at its Americas Hub, located at the Cincinnati/Northern Kentucky Airport, which was announced last year. The North Ramp expansion, which opened just two weeks ago, is built on 45 acres of land and provides parking space for 16 additional planes each night and adds new storage and warehouse space for ramp equipment and shipping containers. Coming next year will be additional automated sorting capability and 40 new reload positions that will enhance the hub’s efficiency to handle the growing e-commerce volume seen in the U.S. and the Americas.”

Mike Parra, CEO, DHL Express Americas, added: “Going forward, we will continue to keep our focus on the last mile, leveraging technologies and solutions that provide added convenience for customers.

“This approach focuses on convenient pick-up and drop-off options, proactive notification and flexible delivery solutions. We are also reconfiguring delivery routes to handle more afternoon deliveries due to an increasing number of shipments going to residential customers, in part due to increased e-commerce volume.”

DHL also outlined some of the key developments included in its additional $105m program for the Americas region. These include:

    • $12m in Canada, adding new service centers in Calgary and Ottawa this year as well as one in Quebec next year and a new gateway in Vancouver; 250 new jobs added this year.
    • $38m in Mexico in 2016 and 2017, in addition to its existing $160m five-year capital investment plan already announced. The additional funds will, in part, provide 38 new outlets for a total of 500 retail service points, two new service centers this year and two more in 2017, a ground fleet upgrade and an aircraft upgrade for the domestic hub; 1,200 new jobs created between 2015 and 2016.
    • $7.5m in Brazil to cover a major upgrade to the Sao Paulo domestic hub and service center including a head office relocation
    • Smaller investments in Peru, Chile and several Central American countries.

Read the article here

Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.