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DHL Supply Chain Philippines is investing over €80 million (about P4.9 billion) to build its biggest logistics facility in the country
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The Sta. Rosa Logistics Center will be fully operational in the first quarter of 2024
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The facility covers more than 50,000 square meters, 30,000 sqm of which are allotted for warehousing and office space
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It has a capacity for about 34,000 pallets
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Two similarly sized facilities may be in the offing in the next five years
Contract logistics service provider DHL Supply Chain Philippines (DSCP) is investing over €80 million (about P4.9 billion) in its biggest logistics facility in the country, which features high levels of automation and green initiatives.
The Sta. Rosa Logistics Center in Sta. Rosa, Laguna broke ground on January 10 and is DHL’s first built-to-suit facility in the country.
Targeted for full operation in the first quarter of 2024, it covers more than 50,000 square meters, 30,000 sqm of which are allotted for warehousing and office space. It has a capacity for 34,000 pallet spaces and features a temperature-controlled room as well as a room for dangerous goods.
Two similarly sized facilities may also be in the offing in the next five years, a testament to growth opportunities seen by the DHL Group in the Philippines, DSCP country managing director Bevan Williams told PortCalls in an interview.
Sta. Rosa was chosen as location as it hosts many manufacturing companies, has ample labor supply, and good access to roads, Williams said.
The hub will feature automated guided vehicles, conveyors, and robotics to assist in operations, and use DHL’s own warehouse management system. And because it will host different facilities in just one building, the hub will make moving products in and out more efficient and safer to manage.
The Sta. Rosa hub will cater primarily to customers from the retail and consumer industries, but is open to other industries such as automobility, life sciences, healthcare, engineering and manufacturing, according to DSCP country head-business development Emmanuel Mozo during the same interview.
Once complete, the hub will house DSCP’s office, now currently in Bicutan, Parañaque. The Sta. Rosa location will provide a better environment for staff, in keeping with the Group’s desire to maintain its Great Place to Work Certification, Mozo said.
GoGreen initiatives
DHL’s “GoGreen” initiatives to reduce carbon emissions are another key feature of the Sta. Rosa hub. These initiatives include the use of solar panels, LED lights, harvesting of rainwater, and electronic vehicle charging stations that will support recent EV investments of the DHL Group. DSCP said it is looking at further intensifying its EV revolution to solidify its GoGreen initiatives in the Philippines.
Two electric trucks and six electric motorcycles will be stationed at the Sta. Rosa hub.
A digital billboard powered by solar panels will be installed to showcase sustainable co-branding efforts with customers, marketing campaigns, and employee recognitions.
Mozo noted the DHL Group’s commitment to zero emissions by 2050, with the Sta. Rosa hub being one of the first logistics facilities to assist with such an initiative.
Williams said DHL wants to be at the forefront of going “green” in operations, noting there is also a push from customers in that direction. He expressed confidence that DSCP can more than rise up to such a challenge.
Growth opportunities
The Philippines offers much opportunity for DSCP, thanks to a growing economy with a young population, according to Williams.
Even during the pandemic, he said the business grew as the company stayed resilient and continued to provide services to customers. Among the many firms DSCP currently services is an aerospace company providing satellite internet services.
Within the DHL Group, DHL Supply Chain posted a divisional revenue of €16,431 million in 2022, 18.5% higher year-on-year.
READ: Deutsche Post DHL ends 2022 with record revenue
With the Philippines considered as one of the “high growth potential countries,” Mozo said there are plans to grow within Luzon and expand in the Visayas and Mindanao in the next five years.
DSCP has branches in 20 locations in the country, 3,500 employees, and a dedicated fleet of 350 vehicles. – Roumina Pablo
