DHL Express is planning to further expand air and ground capacity at its European hub at Leipzigairport to gear up for future volume growth, according to senior executives.
The giant hub, opened in 2008, handles more than 2,000 tonnes per working day, which represents90% of the company’s European volumes and about 10% of its global volumes. The hub’s €70 millionfully automated sorting system, from Vanderlande, has capacity to sort 60,000 parcels and 36,000documents per hour in the 48,000 sqm warehouse and ensures a 120-minute connectivity time betweenarrival and departure.
Since the hub opening, DHL has invested in a ramp extension for additional aircraft parking anda stacker that can store up to 740 containers on a short-term basis. Total investment to date issome €350 million.
Now, however, DHL chiefs are looking ahead to the next stage of investments to increasecapacity, both at Leipzig and potentially elsewhere in the European network. “There’s a plan toinvest significantly in Leipzig. Our growth in Europe has meant we have outgrown the businesscase,” DHL Express Europe CEO John Pearson told CEP-Research.
DHL Express spokesman Dan McGrath confirmed: “We are indeed reviewing ways to accommodateadditional growth and to ensure that Leipzig does not reach its capacity limits in theshort-mid-term. There are various options being considered, including investments at Leipzigitself, expansions at other hubs and the use of more point-to-point connections (or a combinationof these measures).”
One forthcoming investment at Leipzig is likely to be a €10 million spend on an additional loopin the flyer sorting section that would increase document sorting capacity by 10,000 pieces an hourto 46,000 items, Roy Hughes, EVP Network Operations Europe, told journalists at a mediabriefing.
The European air fleet could also be expanded by bringing into service three A300-600 freightersthat DHL acquired from Maximus Air, a Middle East-based cargo airline that collapsed earlier thisyear.
At present, DHL’s European air fleet comprises 90 planes, with 53 own freighters and 37 smallersub-contracted cargo planes. The DHL-owned fleet comprises 16 A300-600Fs, with 42 tonnes capacity,33 B757Fs, with space for nearly 25 tonnes, and four B767Fs, that can carry up to 56 tonnes.Leipzig-based European Air Transport (EAT) operates the 16 A300s and 11 of the B757s while DHL UKoperates 22 B757s and the four B767s.
Markus Otto, VP Aviation Germany, told journalists that EAT, with 27 freighters, is now thelargest dedicated DHL airline in Europe and the largest cargo airline in Germany. There are noplans to re-brand EAT, formerly based in Brussels, with a DHL name.
Otto also pointed out that the major A300 freighter conversion programme had been successfullycompleted this summer with delivery of 18 freighters. EAT is now flying 16 of these while Air HongKong is operating the other two on Asian routes.
