DHL Global Forwarding invests $8 million in new facility in South Africa
In a strategic move that reinforces its commitment to the country, DHL Global Forwarding is investing ZAR 126.5 million, approximately $8.2 million, into a new facility in Johannesburg.
Aimed at cementing its market-leading position in South Africa, the new 13,000 sqm facility will be located within the bonded zone at Skyparks Business Estate – a hair’s breadth from the O.R. Tambo International Airport.
Clement Blanc, Managing Director, DHL Global Forwarding, South Africa said, “While it’s too early to fully grasp the economic impact of the current pandemic, our confidence in investing ahead of the curve is abetted by our diverse service portfolio and long-established foothold in Africa. As the world’s largest free trade area moves toward economic integration, our five-year strategy to sharpen our core business offerings and accelerate digitalization will further our growth in the region and specifically, in South Africa.”
Twice the size of its current set-up, this new facility will consist of a 10,000 sqm warehouse that enables the leading forwarder to consolidate all its customers’ warehousing requirements.
There will be an exclusive and specialized cold chain facility that consists of three adjustable temperature controlled refrigerators geared to handle the life science and healthcare products in and out of South Africa. The warehouse will also support other value added services including cross-docking, storage for air, ocean and road freight services, and a platform for breakbulk cargo.
“Custom-built to our world-class specifications and located in proximity to the airport, arterial thoroughfares and upcoming industrial parks, this new facility will be the game-changer for DHL in the country. We are well-poised to focus on delivering excellence to our customers as we surround ourselves with the critical infrastructure that is needed to enhance our productivity and efficiency,” added Blanc.
Even as the South African economy is expected to inch forward by about 1-2% in the next two years, industry observers are optimistic that the government’s commitment to improve investment and efforts to revitalize townships and industrial parks will reap much-needed benefits.
Equally, a flourishing e-commerce sector will drive greater demand for retail warehousing and distribution space, especially for perishables and fast-moving consumer goods.