DHL announces USD1.2 billion investment in U.S. Operations
Plan Includes Expansion of Regional Sort Center Network and Consolidation of Air Hub Operations
Global express delivery leader DHL today announced an expected $1.2 billion investment in its North America operations to significantly increase capacity and enhance overall service. DHL's unmatched global network and enhanced strength in North America will provide shippers with a seamless product offering and more options to meet their everyday shipping challenges.
"This investment marks an historic turn in the express and ground parcel delivery business as DHL brings a strong alternative to the U.S. shipping market, providing a much needed choice to businesses and consumers across America," said John Fellows, CEO of DHL Express Americas. "With this expansion, we are delivering on our promise to fully integrate our network operations and solidify DHL as a competitive force in the U.S. marketplace, allowing our customers to do business more quickly, efficiently and competitively."
Among the elements of the plan announced today:
The addition of seven new regional sort centers which will increase ground delivery capacity by 60 percent
The consolidation of air hub operations from Greater Cincinnati/Northern Kentucky International into a primary facility at DHL's Wilmington, Ohio Air Park
The addition of five more regional sort centers beyond 2005, bringing the network to 24, doubling the current number of centers
An investment of approximately $1.2 billion toward the upgrade and creation of new DHL sort center facilities, information technology infrastructure, and other enhancements.
The seven new regional sort centers planned for locations throughout the United States will offer greater connectivity within DHL's pickup and delivery network, supporting both air and ground services. In addition to expanding DHL's geographic coverage and improving ground capacity by 60 percent, the expansion will result in an estimated 30-50 local employment opportunities at each regional sort center and, by year-end, increase to 19 the number of centers DHL operates across the country. Beyond 2005, DHL plans to add five more centers and synchronize all 24 facilities with Canada and Mexico to fully enhance the North American network.
DHL will also consolidate air hub operations from Greater Cincinnati/Northern Kentucky International (CVG) into a principal facility at the Wilmington, Ohio (ILN) Air Park. The move will expand the hours of operation, allowing for earlier arrivals and later departures of aircraft, as well as lead to the capture of linehaul efficiencies generating significant annual savings. As DHL invests in upgrading and expanding the ILN facilities to enhance letter and package sort capacity and add ramp space, operations out of CVG will continue with migration of sort operations to Wilmington expected over 18 months. The CVG facility will also be maintained as a backup for DHL's air hub and sort operations for the foreseeable future where the company will staff approximately 300 full time management and operational positions.
"Since DHL's merger with Airborne last year, we've integrated almost all air and ground operations and dramatically improved transit times," said Fellows. "These additional investments in our domestic network will provide our customers with a more complete and robust delivery platform, leading to greater competition and improved services in the U.S. market."
Press Contact:
Jonathan Baker
Director, Corporate Communications
DHL Americas
(954) 888-7047
jonathan.baker@dhl.com
