DHL Expands UK eCommerce Operation With $570M+ Spend

DHL eCommerce Solutions on Tuesday (July 5) unveiled its plan to invest more than $570 million across DHL Parcel UK, its U.K. eCommerce operation, responding to a 40% uptick in volume since the start of 2020 and steadily increasing demand for eCommerce and B2B services, according to a company release.

The spending spree will enhance DHL’s standing when it comes to sustainable and digital logistics, the press release said.

“The Covid pandemic has not only driven digitalization, but also significantly changed consumer behavior, rapidly accelerating the growth of e-commerce and shifting shopping habits,” said Pablo Ciano, executive vice president, corporate development at Deutsche Post DHL Group and designated CEO DHL eCommerce Solutions.

“We believe this shift to online shopping will remain intact and, as e-commerce is one of the important pillars in our Group Strategy 2025, we’ll continue to invest in the sector,” Ciano continued. “This investment in the UK is a key part of that, supporting the expansion and modernization of our European network.”

DHL will open a 270,000-square-foot hub in SEGRO Park Coventry Gateway, located south of Coventry Airport, that will have the capacity to handle more than 500,000 items a day and is expected to create more than 600 new jobs, including warehouse, driver, administration and management positions.

According to the release, it will feature secure bonded storage and customs capabilities to support international eCommerce, a 48-door cross-dock facility and state-of-the-art mechanization, allowing automatic sorting of mixed-sized and weight items through high-speed sortation equipment. Additionally, it will feature solar panels, LED lighting and landscaping that reflects the company’s increasing emphasis on sustainability.

DHL will also spend more than $76 million on upgrading the company’s fleet with six fully electric 18-ton trucks, 30 Liquefied Natural Gas (bio-LNG) trucks and 18 electric tugs, per the release.

The company will also spend almost $225 million on 10 new collection and delivery depots across the U.K., while 20 existing sites will be expanded.

Related: DHL Supply Chain Teams with ReverseLogix on eCommerce Return Services

In February, DHL Supply Chain, the contract logistics company within Deutsche Post DHL Group, tapped ReverseLogix to help it manage eCommerce returns. ReverseLogix provides end-to-end returns management systems for business-to-consumer (B2C) and business-to-business (B2B) needs.