DHL Express announces the opening of its Hamilton International Gateway facility

With a focus on meeting what it called a significant increase in shipping volumes, global express delivery and logistics services provider DHL Express said this week that it has formally opened up its new Toronto-based facility located at the John C. Munro Hamilton International Airport, entitled the DHL Express Hamilton International Gateway.

Plans for this facility were initially introduced by DHL in November 2019, and the company said that this new facility, which it invested $100 million (CAD) into, represents the largest DHL Express Canadian-based gateway by volume, at 238,000 square-feet, four times larger than the previous facility that is also at Hamilton International Airport.

This facility is part of a more than $360 million investment between 2020-2022, in an initiative focused on building new and expanding existing facilities in the America’s region, spanning the United States, Canada, Mexico, South and Central America and the Caribbean, coupled with investing millions of dollars into its Americas air network, for things like the introduction of new direct flight routes.

The new Hamilton facility includes a fully-automated sort system that can process 28,000 packages per hour and 24-hour landing capability, with dedicated Canada Border Services agency staff located on site, which DHL said was a factor in its decision to expand in Hamilton.

And it also noted that this facility now has two daily flights that connect Canada to the International network via Cincinnati and is the largest DHL Express gateway in Canada by volume, with the other Canada-based gateways located in Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Montreal, and Mirabel.

“The Hamilton Gateway facility is a significant milestone for DHL and will modernize our operations in the Canadian market,” said Darryl Wettlaufer, VP of Operations for DHL Express Canada, in a statement. “The new technology and services we’ve implemented, as well as the increased capacity for handling at the Hamilton Airport, will allow us to meet the double-digit sales growth we’ve seen in shipping.”

DHL officials explained that driver for this facility is related to what it called a drastic increase in shipping demand throughout Canada in recent years, noting that going back to 2019, international trade has spurred ongoing growth in DHL Express Canada shipments per day, at roughly 40% per month. What’s more, they said that Canada represents the third largest growth market for DHL Express in the Americans region, with 60% of total Canadian shipments cleared at Hamilton International Airport.

A DHL Express spokesperson told LM in a previous interview that this facility represents a significant investment by DHL Express and is part of its commitment to helping Hamilton’s and Ontario’s businesses succeed through streamlined logistics and improved access to international markets.

“Our investment in Hamilton is a direct reflection of the strong growth we are experiencing in the province of Ontario and across Canada,” the spokesperson said. “DHL Express chose to invest in this brand-new facility, to support our customers in their international growth and to meet our operational needs for the years to come. This allows us to further improve the service quality we offer on a daily basis. It also represents an investment in the local community and economic development, which we are proud of.”

DHL initially set up shop at the Hamilton International facility in 2008, and over the last six years it has invested more than $30 million to grow its fleet and aviation capacity, as well as expand facilities in Edmonton and Winnipeg and double capacity at the Vancouver International Airport in Richmond. DHL Express’s Canadian footprint also is comprised of 17 owned locations and more than 450 partner locations.

The company’s plans to expand at Hamilton International Gateway go back to 2013, when initial studies and forecasts were completed to determine the size and nature of the expansion that was right for its business, people and customers, according to the spokesperson. And she added that from that point, the company began its first discussions with the airport in 2015 and 2016, noting that advantage of the background work is that it should be able to execute this relatively quickly, especially with a strong partner in Hamilton International.

As for the benefits this facility will provide for shippers, the spokesperson explained that providing world-class service through capacity and capability improvements is a key part of its strategy globally.  

“Having experienced double-digit growth in Canada for more than five consecutive years, we know this investment is the right step for us and our customers,” the spokesperson said. “This new facility, which will quadruple our current handling capacity in Hamilton, enables us to maximize our capabilities and provide, efficient, high-quality service so customers are best equipped to compete in the global marketplace. Additionally, this investment demonstrates DHL’s commitment to becoming the Employer of Choice, Provider of Choice, Investment of Choice and further cement our commitment to the city of Hamilton.”