DHL officially inaugurates Americas hub at CVG

Express delivery and logistics services provider DHL recently announced it has officially inaugurated its expanded $105 million Americas hub at the Cincinnati/Northern Kentucky (CVG) Airport.

By ·

Express delivery and logistics services provider DHL recently announced it has officially inaugurated its expanded $105 million Americas hub at the Cincinnati/Northern Kentucky (CVG) Airport.

This inauguration represents the culmination of a four-year plan for DHL to augment its CVG facility in an effort to meet the growing international shipping demand of large multinational corporations as well as small business customers.

“The completion of the CVG hub is a further milestone in the continuous expansion of our international express network,” said Frank Appel, CEO Deutsche Post DHL, in a statement. “We are growing, building for the future and providing U.S. companies with the logistics support they need to succeed globally.”

DHL officials said that the new enhancements to its Americas hub include:
-a new 180,000 square-foot sorting facility specifically designed to accommodate larger express shipments;
-an expanded south ramp for additional wide-body aircraft;
-an employee and pilot building; and
-a facility-wide information technology upgrade

A DHL spokesman told LM earlier this year that this expansion was driven by the successful realignment of its business to focus exclusively on international services and growth in its import and export business, leading to “a need to continue to adjust its operation to meet the growing demands of international shipping customers.”

The spokesperson added the CVG expansion positions DHL’s largest facility in North America for continued growth in package volume. But even with this expansion growth the company has no plans to return to serving the U.S. domestic market.

DHL moved its U.S. hub operations to CVG in July 2009. DHL’s U.S. business focuses on international import and export offerings in major metropolitan areas. It ceased U.S. domestic-only air and ground services at the end of January 2009, due largely to the ongoing uphill battle it faced competing with industry giants UPS and FedEx for market share.

And since DHL reopened operations at CVG in 2009, DHL said it has seen its international business grow dramatically, benefitting not only DHL but the local community with job growth and the Cincinnati / Northern KY International Airport with additional flights.

DHL said that this hub resides “at the heart” of the DHL U.S. network with flights connecting customers from more than 220 countries and territories worldwide to the entire U.S., adding that the CVG hub completes the backbone of the DHL intercontinental network along with its Hong Kong and Germany hubs.

In March 2012, DHL made a $47 capital commitment towards a 193,000 square-foot sort facility and add about 280 jobs to the DHL CVG hub to provide it with more space to handle heavy weight non-conveyable cargo,” according to Mike Parra, senior vice president and head of operations for DHL Express Americas, in an interview.

“It’s geared to meet the continued growth in package volume that we’re seeing.  It should make the operation at CVG even more efficient and will provide the infrastructure needed to meet DHL’s expected growth over the next 10 years.”

In February 2011, DHL said it would begin building on 19 acres of land leased from the CVG Airport Authority to expand its existing aircraft apron and construct nine new aircraft gates. They added that this will enable parking for nine additional wide-body aircraft that will connect the U.S. to points in Asia, Europe, and the Americas.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Freight · DHL · All Topics
Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....