DHL plans heavy investment in Middle East

Staff -- Logistics Management, 2/20/2007

DUBAI, United Arab Emirates—DHL is set to expand its operations at Dubai World Central by more than 3.2 million square feet over the coming years, Dr. Klaus Zumwinkel, Chairman and Chief Executive Officer of Deutsche Post World Net announced at a press conference in Dubai.

He also announced that his company will invest significantly into expanding its presence at the new Dubai Logistics City (DLC).

“With high economic growth, the Middle East is one of Deutsche Post World Net's most important regions. It is an emerging market that has the world’s attention and as a result it presents a huge opportunity for our business,” said Dr. Zumwinkel. “The investments in our new facilities will keep DHL at the forefront of the rapidly expanding logistics and express business,” he added.

According to London-based industry research and analysis firm, Transport Intelligence (TI), the expanded facilities build upon the existing 914,000 square foot footprint in the Jebel Ali Free Zone, which is operated by Danzas AEI Emirates. The group's logistics entity (which represents the DHL Global Forwarding and Exel Supply Chain businesses in this region) recently announced two additional signing agreements. The first is on nearly 325,000 feet at the new Cargo Village Jebel Ali Airport forwarding area with an option for a further 160,000 square feet. It has also secured an additional 1.6 million square meters in the DLC's specialized contract logistics area with an option for another 840,000 square feet.

DHL Express plans to further invest in a new air integrator hub facility on a 540,000 square foot plot at the new World Central Airport in Jebel Ali.

The Middle Eastern logistics market is growing rapidly due to the development of domestic consumer demand, construction logistics, oil and gas industry as well as positioning itself as a regional freight forwarding hub, according to TI. Investment such as these will drive increased efficiencies, reducing costs and increasing customer service says TI. For more information on the region follow the link to TI’s recent report on logistics in the Middle East.