DHL begins constructing its biggest Singapore warehouse

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dhl-north-asia-hub-13Global logistics company DHL Supply Chain is building a US$128-million regional warehouse in Singapore that will expand the company’s storage capacity in the city by 40 percent and leverage opportunities in the logistics industry in Southeast Asia.

Groundbreaking ceremonies were held recently for the Advanced Regional Center, a 90,000-square-meter logistics center located at Tampines LogisPark that is expected to be completed by the second half of 2015. It will be DHL’s 21st facility and its largest in Singapore.

The new investment is intended to tap into growing business opportunities arising from the booming Southeast Asia’s economy and the regional launch of the ASEAN Economic Community next year.

It is part of a business plan to beef up DHL’s Southeast Asia presence by expanding its transportation fleet by over 85 percent to 2,300 vehicles, shoring its staff strength by 65 percent to some 25,000 people, and adding over 50 percent more warehouse space by 2015.

The new facility will hire more than 300 employees in Singapore to boost DHL Supply Chain’s headcount in the city-state, currently at about 1,700.

At the groundbreaking rites, Singapore Minister of State for Trade and Industry Teo Ser Luck said he expects the continued rapid growth of Asian economies and the rise of the middle class in Asia to drive the demand for logistics services in the region.

The warehouse will also house Asia Pacific Solutions & Innovation Center, a research and development facility for the logistics industry that is a joint project with the Singapore Economic Development Board.

DHL’s Asia-Pacific, Middle East and Africa regional office and the Singapore country office will also be relocated to the premises.

The warehouse is a joint investment between DHL, which will provide $32 million, and Cache Logistics Trust, which will shell out $96 million and develop the facility.