DHL to build its largest US service center in New York City
DHL, the world’s leading global express delivery and logistics company, today announced plans to build its largest U.S. service center facility in New York City, New York. The $181 Million investment will consolidate two existing service center locations into a new 161,125-sq.-ft. facility to serve Manhattan pickup, delivery and sorting operations.
Strategically located to provide rapid egress and regress through below-grade access through the Lincoln Tunnel, the new service center will increase throughput capacity from 10,000 to 15,000 pieces per hour, enhance the efficiencies of the New York City DHL operation by combining multiple operations under one roof, and secure DHL’s ability to maintain a high level of service for years to come.
“DHL is continually looking for ways to improve and enhance service through investments in our U.S. operations,” said Mark Munoz, senior area vice president of operations for DHL. “This new facility will serve as our gateway to the New York City market and with the strategic location near the Lincoln Tunnel will provide enhanced service levels for all of our local customers as well as accommodate growth for the next twenty years.”
The new state-of-the-art facility will handle a wide variety of shipments — including domestic and international parcels as well as palletized and container freight — and initially employ over 400 personnel when fully operational in May 2006.
Additional key facts about today’s announcement include:
— Construction of the New York City facility will begin in February 2006. The facility will be fully operational in May 2006 and will operate 24 hours a day Monday – Friday, and until 6:00 PM on Saturday.
— The new facility covers approximately 161,125 square feet. An additional 44,225 square feet is expected to be added in the Fall of 2007.
— The $181 million DHL investment includes a 20-year lease, construction of the new facility, and capital improvements.
— The site is located at 500 10th Avenue, bordered on the North by 39th Street and on the South by 38th Street.
— The new facility will have a handling capacity of 15,000 letter and parcel shipments per hour. It will also accommodate the unloading and loading of loose-loaded trailers.
DHL has maintained its leadership in the global delivery market for more than three decades through the continuous expansion of its transportation network, the enhancement of its portfolio of domestic and international shipping services, and by providing superior customer service to meet the needs of a growing, global customer base.
The New York City facility is one of many initiatives DHL has undertaken to improve US network efficiencies, cost containment and connectivity system-wide. Last year, DHL Express announced a $1.2 billion network investment program in the U.S. market which has resulted in a newly expanded primary air and ground hub in Wilmington, Ohio, seven new Regional Sort Centers, and a recently completed West Coast distribution facility.
