DHL Express has announced it is planning major infrastructure investments, of more than $360m between 2020 and 2022, to build new and expand existing facilities in key growth markets within the Americas region. Additionally, the company intends to spend millions on measures to bolster its Americas air network, such as introducing new, direct flight routes.
The investments come on the heels of significant B2C and B2B e-commerce shipment growth, where the Americas countries experienced, on average, 33% more shipments per day in Q1 2021 as compared to the previous year, according to DHL. The Americas region countries include the United States, Canada, Mexico, South and Central America and the Caribbean. For the US, shipment volumes were up 41% in Q1 2021 vs.Q1 2020.
Many of the infrastructure investments are said to focus on the company’s facilities, which include service centres for pickup and delivery operations, gateways that manage the international clearance of shipments, and hubs which operate as shipment transfer points to and from regions of the world. An expanded hub in Miami, Florida that is currently under construction will be the 6th-largest DHL Express hub globally by Time Definite International (TDI) volume, according to DHL. A new, 244,000 sq ft automated hub in Hamilton, Ontario (Canada) is another major DHL investment in the region. Once finalised, the new hub will be four times the size of the current one.
DHL Express will also be adding new service centres and upgrading existing facilities throughout its regional network to support first- and- last-mile pickup and delivery operations, also aiming to enhance other hubs and gateways and expanding its retail footprint in key markets in South America.
Mexico
In Mexico, significant investments will support the ever-growing Time Definite Domestic (TDD) market. To support first and last mile shipment processing, 105 self-service kiosks will be installed at retail counters for customer convenience during 2021. Hubs and gateways will be upgraded with automation in Mexico City, Guadalajara and Monterrey, while service centres will be expanded in key markets throughout the country.
South America
In Brazil, the Viracops Gateway in Capinas will be upgraded to expedite the processing of TDI shipments to and from the country. While expansions are taking place in other South American countries, including new retail service point locations in Chile and Colombia, and an expanded gateway in Lima, Peru.
All of these investments, which are said to include new technologies to improve operational efficiencies, are intended to increase volume capacity in the DHL Express Americas network by nearly 30% by the end of 2022.
“The growth in e-commerce shipment volumes will continue to put pressure on air cargo capacity in the industry, which has led to our continued investments in new dedicated aircraft and routes,” said Mike Parra, CEO, DHL Express Americas.
Since 2019, 14 new DHL-owned 777F have been added to the company’s global fleet, many of which serve points between the Americas region and the rest of the world. Of the original 14, four were put into operation in 2019, six in 2020, and four will support the network this year, stated DHL. It continued stating that an additional eight aircraft will be added between 2022 and 2024. The company has also increased its third-party aircraft lift (ACMI) serving the Americas, as well as direct leasing of additional aircraft, some of which will be destined for operators in the US in exclusive support of the DHL Express network.
Source: DHL
