nvestments by DHL Global Forwarding and DHL Supply Chain entities underscore long term growth plans for the region
Investment is key in developing South Africa as a logistics hub for the region
DHL, the global market leader in the logistics and transportation industry today announced investments totaling EUR 30.5 million by both its Supply Chain and Global Forwarding divisions in South Africa. The investments signal the group’s long-term growth plans for the region as it brings state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa.
The company launched two new facilities located in Plumbago, located in close proximity to the OR Tambo International Airport east of Johannesburg. An excellent location for logistics services, the facilities offer the twin benefit of both freeway access and high visibility.
Reinforcing the importance of Africa and the emerging economies for the Group’s future, Roger Crook, CEO, DHL Global Forwarding and Freight, Member of the Board of Management, Deutsche Post AG, said “Part of our global three pillar Strategy 2020 is to focus on further expansion of logistics services in the world’s emerging markets. Today, emerging market revenues contribute just over 20 percent of the Group’s revenues; by 2020, the Group expects this figure to climb to 30 percent(1).”
EUR 16 Million boost for DHL Global Forwarding’s Operations
For DHL Global Forwarding, the leading provider of air, sea and road freight services, the EUR 16 million new facility located at the Plumbago Business Park boasts 12,000 square meters of warehouse space and 5,500 sq meters of office space. The efficient layout of the new facility greatly improves cargo handling with an enhanced flow of goods in and out of the facility. The new facility also increases the company’s ability to offer customers a full range of Value-Added-Services (VAS) such as bonded storage and re-packing, and further grow its Airfreight and Ocean Freight export handling capabilities.
A TAPA ‘A’ certified warehouse, the new premises are a world class facility in South Africa, strengthening the country’s growth capabilities as the hub for distribution into the region. Twine Mtya, CEO, DHL Global Forwarding, Southern Africa, said, “Our new investments are necessary to support our growth and expansion plans in South Africa. In addition to our established Air and Ocean freight services, we have seen particular growth in our robust intermodal road network, spanning 12 African countries – road freight volumes have more than doubled in the past year, spurred by increasing demand and economic growth on the continent.”
DHL Global Forwarding is also expecting to reduce its CO2 emissions in excess of 700,000 kg per annum from consolidating its Johannesburg operations into one facility. Emission reduction will be achieved from savings on electricity through the use of solar power energy, and savings on petrol through more efficient and effective material handling at the warehouses
EUR 14.5 mil state-of-the-art Facility to consolidate DHL Supply Chain’s operations
DHL Supply Chain’s 25,000m² multi-user warehouse facility will be used to consolidate its technology client portfolio, as well as some key fast moving consumer goods (FMCG) clients. The facility has been purpose-built for the technology and consumer industries including specialty designs such as high density storage up to 16m in height for FMCG companies; optimised operational flows; a super flat floor necessary for such high-level storage and retrieval; and the latest technology on reach trucks.
“We are implementing international best practices at Plumbago, and this will become the model for other facilities across the country. Our long-term strategy is to develop warehouses in prime locations – with our well-established networks, we provide daily deliveries to almost all retailers across South Africa with 99.8% on-time efficiency,” said Craig Roberts, CEO, DHL Supply Chain – Middle East and Africa.
“The new space gives our clients the advantage of a better location and warehouse design, planned by the best logistics specialists, as well as increased automated throughput. Such investments are long-term in nature, and reflect DHL Supply Chain’s commitment to Africa. We have an ambitious growth strategy for this region and intend to use our South African assets as a springboard into the rest of Africa,” he added.
The facility will offer market leading warehousing management systems, and boasts eco-friendly features including energy efficient lighting system, and rain water harvesting for vehicle washing. The consolidation and relocation nearer to OR Tambo Airport, client distribution centres and retailers, itself considerably reduces carbon emissions.