DHL have announced plans to invest €560m across its UK ecommerce operation, DHL Parcel UK.
The investment comes following a 40% volume uplift since the start of 2020 and soaring demand for its ecommerce and B2B services. The expansion project is designed to deliver the right infrastructure to facilitate growth as well as putting the business at the forefront of sustainable and digital logistics.
The Covid pandemic has not only driven digitalization, but also significantly changed consumer behavior, rapidly accelerating the growth of e-commerce and shifting shopping habits. 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. 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– Pablo Ciano, Executive Vice President Corporate Development at Deutsche Post DHL Group
Nearly half of the DHL Parcel UK investment will be in a brand new 25km² hub in SEGRO Park Coventry Gateway, located south of Coventry Airport. The new facility will have the capacity to handle over 500k items per day and will feature secure bonded storage and customs capabilities to support international ecommerce.
An initial €75m will be invested in upgrading the company’s fleet with a major focus on alternative fuel vehicles. This roll-out will be followed by further sustainable fleet investment going forward.
Finally, the business will also invest over €220m to create 10 brand new collection and delivery depots across the UK, and 20 more existing sites will be expanded.