Wednesday, January 23, 2019

Express Parcel Carrier Makes Investments in Nordic Logistics Hubs

Two New Facilities Funded in Denmark
Shipping News Feature
DENMARK – DHL Express is to make its largest ever investment in Denmark and the Nordic countries with a new hub at Copenhagen Airport, as the freight and logistics giant looks to significantly improve the speed and quality of its activities in the region. With new state-of-the-art automated systems, DHL says the new facility will be able to handle nearly 37,000 packages per hour, 24 hours a day, in the 26,172 m2 warehouse and office complex. The company expects the hub to be ready in 2023 and to add around 100 new jobs. John Pearson, Global CEO of DHL Express, said:

"We want to grow through quality. Therefore, we are investing significantly into the expansion of our infrastructure to increase efficiencies and to improve delivery capabilities. Our international hubs are the backbone of our global network which connects businesses from all industries and private customers alike, and enables them to benefit from the ongoing e-commerce growth."

Packages to and from Denmark usually travel via the DHL hubs in Leipzig, Germany, or East Midlands, UK. However, once the new hub at Copenhagen Airport is built, planes will reach their destinations more directly and without additional stops along the way. Fewer stops mean faster delivery, which is critical for many companies' business and vital for consumers today.

DHL Express' new freight terminal will be located on a 43,116 m2 site in the eastern freight area of the airport, where a new Airport Business Park is in the works as well. The new airport development is the second recent infrastructure investment in the country of late. In 2018 the company broke ground on a new terminal in the central city of Fredericia with a cost of €13.4 million.

Additionally In 2018, the logistics giant announced that it is to expand its fleet to over 260 planes, with the procurement of 14 new Boeing 777 air freighters and five Airbus A330s. Copenhagen Airport Group CEO Thomas Woldbye, commented:

"Air freight is crucial for maintaining and developing the Copenhagen Airport as a key Northern European hub. We consider expansion a key target in our strategy, and we are very grateful that DHL has chosen CPH for their new hub. We can see growing demand for high-quality air freight facilities to handle the increasing volume of freight to and from places like China. It also meets the needs of consumers, who do more and more of their shopping online. This really is great news for Denmark and the region!"

At full capacity, the new airport hub's two automated sorting systems mean the package per hour throughput will make it the fifth largest hub in the global DHL network. It offers air and ground links to a broad number of European destinations, as well as direct intercontinental connections to the Americas, Middle East and Africa. Atli Einarsson, Managing Director of DHL Express in Denmark, commented:

"We are experiencing enormous growth in our cross-border online trade. We are also preparing for our customers' growth, including manufacturing companies within the pharmaceutical and fashion industries. This massive upgrade of our facility will turn it into one of the most modern of our 19 regional hubs worldwide. This demonstrates the importance of our country's future role in the network. The new regional hub will benefit businesses and consumers in Denmark and throughout the Nordic region.

"The new investments here in Denmark and at other locations in our network are part of our global plan to promote our future growth, efficiency improvements in day-to-day operations, and the quality for which our customers choose us."

As part of DHL's GoGreen programme the new hub reduces the company's ecological footprint by 768 tonnes of COy per year, thanks to its more efficient sorting techniques and better insulation. It is also certified to the TAPA 'A' security standards.