DHL announced that it is investing €560 million (US$572 million) in its e-commerce operation in the United Kingdom to support its ambitious growth plans.
This comes as the German logistics giant reported a 40% volume uplift since the start of 2020 and soaring demand for its e-commerce and B2B services.
"DHL eCommerce Solutions announced plans to invest €560m across its UK e-commerce operation, DHL Parcel UK ... The expansion project is designed to deliver the right infrastructure to facilitate growth as well as put the business at the forefront of sustainable and digital logistics," DHL said.
E-commerce growth cited
Pablo Ciano, executive vice president Corporate Development at Deutsche Post DHL Group and designated CEO DHL eCommerce Solutions, noted that the Covid-19 pandemic has not only driven digitalisation, but also significantly changed consumer behavior and rapidly accelerated the growth of e-commerce.
"At Deutsche Post DHL Group we believe this shift to online shopping will remain intact and, as e-commerce is one of the important pillars in our Group Strategy 2025, we'll continue to invest in the sector," Ciano said.
"This investment in the UK is a key part of that, supporting the expansion and modernization of our European network. I'm really looking forward to supporting the business on its growth path in my new role as CEO DHL eCommerce Solutions starting August 1," he added.
DHL noted that nearly half of the investment will be in a brand new 25k m² hub in SEGRO Park Coventry Gateway, located south of Coventry Airport.
It said the new facility will have the capacity to handle over 500k items per day. The new hub will also feature secure bonded storage and customs capabilities to support international e-commerce, a 48-door cross dock facility, and state-of-the-art mechanization, allowing automatic sortation of mixed-sized and weight items through high-speed sortation equipment.
DHL said the building has been designed to minimize its environmental impact through design features such as solar panels, LED lighting, and landscaping to protect the natural biodiversity of the area.
It will incorporate EV charging points for cars, and will also be equipped with LGV electric charging points throughout and sustainable fuel capabilities to pre-empt technology developments in larger vehicles over the coming years.
Alternative fuel vehicles
DHL said an initial €75 million (US$76.5 million) will be invested in upgrading the company's fleet with a major focus on alternative fuel vehicles.
The fleet investment includes 6 fully electric 18tn trucks, 30 Liquefied Natural Gas (bio-LNG) trucks, and 18 electric tugs. This roll-out will be followed by further sustainable fleet investment going forward.
"In total, Deutsche Post DHL Group will spend €7 billion on sustainable fuel and clean technologies by 2030," the logistics company added.
Peter Fuller, CEO of DHL Parcel UK, said e-commerce is going to "continue to shape the world around us."
"... This investment, along with the strength of the DHL brand and our leading approach to digitalization and sustainability will put us in a strong position to take advantage of market growth," Fuller added.
