DHL invests in UK e-commerce operations

DHL eCommerce Solutions will invest 560 million pounds ($668 million) in its U.K. e-commerce branch, DHL Parcel UK, to expand infrastructure and invest in digitization and sustainable logistics. Plans include construction of a new, 25,000 square-meter hub near Coventry Airport (CVT) in England, upgrading the company’s fleet to include alternative fuel vehicles and creating new collection and delivery depots around the U.K., according to a release. DHL did not disclose when construction would begin or when the facility would be operational and the company was unavailable for comment prior to publication. Construction will begin this fall, with plans to open the site in 2024, a spokesperson from DHL told Air Cargo World. [caption id="attachment_57065866" align="alignright" width="450"] Photo / DHL[/caption] The project fulfills two DHL goals: investment in e-commerce and expansion and modernization of its European network, Pablo Ciano, executive vice president corporate development at Deutsche Post DHL Group, said in the release. Ciano will become chief executive officer of DHL eCommerce Solutions starting Aug. 1. Over half of the investment will be devoted to the Coventry hub. The facility will be able to handle more than 500,000 parcels per day, according to the release. Warehouse facilities will make up 21,800 square-meters of the facility and include secure bonded storage and customs, a 48-door cross-dock facility and automatic item sorting. The new hub will feature 7,000 square-meters of solar panels and LED lights, as well as electric vehicle charging ports and LGV electric charging points for cars and larger vehicles, respectively. Around $89 million will go toward alternative fuel vehicles for DHL’s fleet, including six electric trucks, 30 liquefied natural gas (bio-LNG) and 18 electric tugs, according to the release. The company will also spend around $263 million to create 10 new collection and delivery depots around the country and expand 20 existing sites; designed to increase availability for customers, enable roll-out of new electric vans and improve speed of services, according to the release. U.K. e-commerce market outlook DHL reported a 40% volume uptick since 2020 and “soaring demand” in e-commerce and B2B services, according to today’s release. In 2020 and 2021 , DHL reported record revenue for its eCommerce Solutions division. The company also plans to invest more than $300 million in the next five years in eCommerce Solutions in the U.S., adding 70% more square footage, automating all U.S. distribution centers and upgrading its current IT platform, according to a September 2021 announcement. The U.K. spent $1,668 billion on e-commerce in 2020 , according to data from Cargo Facts Consulting . The share of e-commerce sales also grew in the U.K. over 10 percentage points during the peak of the COVID-19 pandemic. Currently China, the U.S. and Germany are among the top three origins for cross-border e-commerce trade with the U.K, according to Cargo Facts Consulting ’s e-commerce dashboard . This story has been updated with comments from DHL.

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