DHL Express invests US$177 million in new MENA facilities

DHL-Express-invests-US177-million-MENA-facilitiesDHL is set to invest US$27mn in three facilities in the UAE. (Image source: DHL)Global express service provider DHL Express has invested US$177mn in new facilities located in Saudi Arabia, UAE and Egypt

The German logistics major is focusing on emerging markets in the MENA region, according to a company statement. The new investments include three new facilities in Saudi Arabia, a new office in Cairo, and an operations facility in Dubai.

Nour Suliman, CEO of Middle East and North Africa at DHL Express, said, “MENA and its trading links are growing in importance in the global logistics industry with strong growth projections for the next few years. Our plan is to be right at the centre of that growth to serve our customers.”

In Saudi Arabia, DHL Express has invested US$95mn to develop three trade getaways in Dammam, Riyadh, and Jeddah, which are linked to leading distribution hubs including Bahrain, said the statement. Through the getaways, DHL Express plans to cater to trading partners like China, Japan and the US as well.

Additionally, the new head office in Riyadh and gateway facility at King Khalid International Airport will open in September 2014. The Riyadh Gateway is a 4,000 sq m facility with an in-house customs bonded facility, which is expected to reduce cargo clearance time.

The 10,000 sq m Dammam getaway and service centre at the King Fahd International Airport has allowed DHL Express to expand operational capacities across the Gulf. The upcoming Jeddah facility is spread across 5,850 sq m and scheduled for completion in late 2014.

The IMF has projected that the Kingdom’s GDP will grow by 4.4 per cent in 2014, making it one of the largest markets for DHL Express, stated Suliman.

Meanwhile, the company is planning to invest US$27mn in three facilities in the UAE including Meydan, Dubai, making it DHL’s largest ground operations facility in the MENA region.

”The new facility will increase speed of service and set new industry benchmarks in Dubai’s express market. DHL’s Meydan facility will occupy 17,265 sq m, include a 7,272 sq m indoor sorting and loading area and state-of-the-art materials handling technology. A new 4,333 sq m office will serve as the new head office,” added Suliman.

DHL Express has invested US$55mn in a new country office in Cairo to serve as Egypt’s head office, gateway, service centre, strategic parts centre and a hub to facilitate MENA connections to Europe.

The Cairo office is set to open in August 2014 and the 7,300 sq m facility will be the company’s largest gateway centre in North Africa. It would also be a key logistics hub, offering bonded warehousing services for storing and re-exporting goods for the first time in Egypt.

In addition to their expansion plans, DHL also introduced two new flights to Lebanon and Qatar and unveiled plans to expand its presence in Morocco.

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