Home » 3PL/4PL, Breaking News » DHL eCommerce to invest $30M in distribution hub, automation

DHL eCommerce Solutions has announced plans to invest about US$30 million in 2020 to expand and modernize its operation in the United States as e-commerce volumes are expected to surge in the upcoming holiday season and beyond.

The investment includes purchasing its first fully owned, ready-to-occupy distribution center in Atlanta in the US and seeking temporary distribution center space in Chicago, Los Angeles, and Avenel.

Due to anticipated 2020 holiday peak volume increases in November and December, the company also plans to invest in automation equipment. At the end of the third quarter and throughout the fourth quarter, the company is hiring 900 new distribution center workers to support its growth.

“It is an extremely proud moment for us to move to our first fully-owned U.S. building located in Atlanta,” said DHL eCommerce Solutions Americas CEO Lee Spratt. “Our expansion plans have been in the works for some time, but with this year’s consistent surge in e-commerce volumes, we understood the urgency of finalizing our plans to have a permanent home in the Atlanta area and additional space in strategic metropolitan U.S. locations.”

The 150,000-square-foot building located 20 miles from the Atlanta Hartsfield Airport has access to some of the main thoroughfares for speedy air and ground parcel transportation. The distribution center will process domestic lightweight parcels. In addition to the new building, the initial investment will include a sorting machine that can process 20,000 to 30,000 parcels per hour.

“At DHL eCommerce Solutions, we expect to see 30-50 percent more e-commerce volumes this holiday peak season compared to last season, so we have made the necessary investments in our footprint, machinery, and people to be ready to serve our customers and make this season a success,” said Spratt.

DHL eCommerce Solutions currently has 19 distribution centers and three corporate offices in the United States and Canada with approximately 3,000 employees. The division is focused 100% on servicing B2C online merchants, shipping lightweight packets and parcels domestically and internationally.

Photo: Deutsche Post DHL/Oliver Lang

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