DHL continues expansion of North American Network
DHL, the world's leading global express delivery and logistics company, today announced the location of its new West Coast distribution facility in Riverside, California. DHL will spend USD65 million in the lease and development of the new hub as part of a $1.2 billion North American network expansion program launched by the company in June 2004. Recently, the company also announced the buildout of an expanded DHL Air & Ground Hub in Wilmington, Ohio, and the addition of seven new Regional Sort Centers that will be opened this year.
"DHL promised to be a strong alternative to the duopoly of FedEx and UPS, allowing customers to do business more quickly, efficiently and competitively," said Fred Beljaars, executive vice president for operations, DHL Americas. "The new West Coast Distribution facility is the latest element of our USD1.2 billion investment program to expand and enhance DHL's North American service network. With this expansion, we continue to offer customers more choice in their express delivery and shipping options."
While DHL already provides service to every ZIP Code in the U.S, the new Riverside facility will offer greater connectivity within DHL's pickup and delivery network, and between the company's ground and air services.
The new West Coast Distribution Hub in Riverside will also provide an expanded footprint for 1-day ground services across California and into Nevada, including Las Vegas, as well as Arizona, including Phoenix. The hub will utilize a sophisticated automated package tracking system linked via high-speed communication networks to DHL's Global Data Centers, providing complete package status visibility to DHL customers in California, across the U.S., and around the globe.
"Locating the West Coast Distribution Hub in Riverside provides us with a bridge between our east and west coast operations that will enhance DHL's comprehensive air and ground network operations, increase network efficiency, and enable us to meet the growing needs of DHL customers," said Beljaars. "Through this addition, customers will benefit from improved connectivity between the West Coast and the rest of the contiguous 48 states."
The new Riverside facility will allow DHL to utilize current resources available at the March Air Reserve Base such as a 24-hour Air Control Tower, aircraft support equipment and enhanced security measures. Upon completion, the facility will immediately create 250 jobs in the Riverside area, while approximately 300 construction jobs will be generated as the facility is being developed over the next year.
Other key facts about the new facility include:
— The facility will begin operating in the fall of 2005
— The new facility will contribute approximately USD9.7 million to the local economy in the form of facility payroll and payroll taxes, landing fees, facility rent, real estate taxes and utilities
— The Riverside facility will allow for later cutoff times for customers in the Los Angeles area and earlier aircraft arrival times, which will also improve service levels
— The completed facility will occupy 262,000 square feet, with a 44,000 square foot mezzanine floor
— By the end of 2005, intra-region trucks serving markets across California and across the U.S. will operate out of the new facility at March Air Reserve Base
— There will be nine flights per day into and out of the facility
— Eight aircraft will operate out of the facility, including seven aircraft on inter-west coast routes
— The facility will provide service to 23 DHL stations in the region
In the last three months DHL has announced the opening of seven new Regional Sort Centers in Denver, Colorado; Salt Lake City, Utah; Memphis, Tennessee; Baton Rouge, Louisiana; Erie, Pennsylvania; Phoenix, Arizona; and Minneapolis, Minnesota. These sort center facilities have already increased DHL's ground delivery product capacity by 60percent.
