DHL to Meet eCommerce Growth Demands With $100 Million Investment

Last week, DHL announced that the company would be expanding its Cincinnati/Northern Kentucky airport hub facility in an effort dhlto "meet the demands of continued growth in international e-commerce and global trade."  In order to accomplish its goals, DHL is investing $108 million for the expansion.  This is one aspect of a larger global expansion the company has invested in recently.

Stephen Fenwick, CEO at DHL Express Americas, said in a statement that the investment underscores DHLs commitment to the U.S. market; the multi-million dollar investment also plays an integral role in connecting the Cincinnati-Northern Kentucky region hub to the company's enormous global network, according to Fenwick, who also said the investment will contribute to the economic well-being of the region, and support continued growth in international shipments.

The Cincinnati/Northern Kentucky airport hub, also referred to as the CVG hub, is one of three global hubs which connect the U.S. to DHLs global network which spans not only the Americas, but Asia and Europe as well.  According to the announcement, the CVG hub connects nearly 100 service centers, a hub in Miami, and gateways in New York and Los Angeles to more than 220 territories and countries globally, and processes about 46 million international shipments on a yearly basis.  The hub also processes shipments bound for Canada, Latin America, Mexico, and the U.S.

Since the establishment of the CVG hub as DHLs U.S. international operations center in 2009, the latest investment will bring the total spend by DHL on this facility to $280 million.  Currently, the CVG hub employs 2,000, up from 1,600 in late 2009.  DHL expects the various equipment and expansion projects at the CVG hub covered by this $108 million investment to be completed late next year.

DHL received approval from the Kentucky Economic Development Finance Authority for a sales and use tax credit on May 28.  These tax incentives will apply to building fixtures, construction costs, equipment used for electronic processing, and other R & D equipment.

Over the last one-and-a half years, DHL has announced several investments in its efforts to expand the company's services globally.  These investments include $177 million in North Africa and the Middle East, $200 million to double the Leipzig hub in Europe, and $85 million in a new Singapore hub in South East Asia.  DHL CEO Frank Appel said at a recent meeting that DHL "wants to be the global market leader in logistics for e-commerce." 

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