DHL Express Plans $360M Americas E-Com Boom Infrastructure Expansion
July 8, 2021
Express is investing more than $360 million USD 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. The Americas region
countries include the United States, Canada, Mexico, South and Central America
and the Caribbean. For the U.S., shipment volumes were up 41% in Q1 2021 vs. Q1
"Globalization has continued to show its resilience, fueled by digitalization
and the power of global trade," said Mike Parra, CEO, DHL Express Americas.
"With an ever increasing number of consumers shifting their shopping activities
online, and the sharp rise in businesses selling their goods in the global
marketplace, we need to continue the critical investments in our network
infrastructure to meet the growth demands in international e-commerce and global
Many of the infrastructure investments will focus on the company's facilities,
which include service centers 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
state-of-the-art hub in Miami, Florida that is currently under construction will
be the 6th-largest DHL Express hub globally by Time Definite International (TDI)
volume. A new, 244,000 sq. ft. automated hub in Hamilton, Ontario (Canada) is
another major DHL investment in the region. Once finalized, the new hub will be
four times the size of the current one.
DHL Express will also be adding new service centers and upgrading existing
facilities throughout its regional network to support first- and- last-mile
pickup and delivery operations, also enhancing other hubs and gateways and
expanding its retail footprint in key markets in South America.
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
state-of-the-art automation in Mexico City, Guadalajara and Monterrey. And
service centers will be expanded in key markets throughout the country.
In Brazil, the Viracops Gateway in Capinas will be upgraded to expedite the
processing of TDI shipments to and from the country. And 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 include new technologies to improve operational
efficiencies, will 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," added Parra.
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. 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 U.S. in exclusive
support of the DHL Express network. Along with the renewal of other existing
aircraft lease arrangements, and bringing on new operators for the Americas, the
investments in aviation will help the company maintain its high service levels
and capacity needs for years to come.
All of these investments open up thousands of new job opportunities across the
Americas. In the U.S. alone, more than 2,600 new jobs are expected to be filled
throughout 2021, in addition to the 3,000 that were created in 2020. These new
jobs will include 1,100 new positions at the DHL Americas Hub at
Cincinnati/Northern Kentucky Airport (CVG), and nearly 200 at the expanded hub
in Miami, Florida.