Logistics company DHL announced it is investing $108 million to expand its Americas hub facility at the Cincinnati/Northern Kentucky airport (CVG) to meet the demands of continued growth in international e-commerce and global trade.
The expansion will provide more gates to accommodate additional aircraft, warehouse space, and new equipment to provide more capacity for sorting shipments as well as unloading and reloading planes.
“This multi-million dollar investment underscores the DHL commitment to the US market and the integral role that our hub here plays in connecting the Cincinnati-Northern Kentucky region to our vast global network,” said Stephen Fenwick, chief executive officer of DHL Express Americas. “The expansion and service enhancements from this investment will provide additional infrastructure and efficiency. This in turn will support the continued growth in international shipments that we’re seeing as well as add to the economic well-being of this region.”
“DHL Express continues to be a valuable resource in the commonwealth, not only for our strong logistics network, but also for the northern Kentucky community,” said Gov Steve Beshear. “I’ve been proud to celebrate DHL’s growth during my time as governor, and I look forward to seeing the company’s continued success in Kentucky for years to come.”
The CVG hub, one of three DHL global hubs, connects the United States to the DHL global network spanning Asia, Europe, and the Americas. Processing approximately 46 million international shipments annually, the CVG hub handles shipments bound for the United States, Canada, Mexico, and Latin America. It also connects nearly 100 service centers, gateways in Los Angeles and New York, and a hub in Miami to more than 220 nations and territories worldwide. DHL’s two other global hubs are in Leipzig, Germany and Hong Kong.
DHL has applied to the Kentucky Economic Development Finance Authority for several tax incentives as part of this project. It received approval from the development authority for a sales and use tax credit on construction costs, building fixtures, electronic processing equipment, as well as equipment used in research and development. The state of Kentucky provides the tax incentives to encourage companies to invest and expand their operations in the state.
With this new investment, DHL will have invested $280 million in the CVG hub since establishing its US international operations center at the Cincinnati/Northern Kentucky airport in 2009. Staffing has also grown, from 1,600 in late 2009 to about 2,000 currently.
DHL has invested significantly in its global express network in recent years, in order to reinforce its position in international time definite delivery. In the past 18 months, the company has announced major investments, including $200 million to double its European hub in Leipzig, $85 million in a new South East Asia Hub in Singapore, and $177 million expansion program in the Middle East and North Africa. DHL is also modernizing its air fleet, introducing more efficient freighter aircraft with increased capacity to bolster connectivity for its global customer base.
The expansion and equipment projects covered by this latest investment in the Cincinnati hub should be completed in late 2016.