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Plan to invest Dh500 million for DHL expansion at DLC

DUBAI — DHL, a leading express and logistics operator, is set to expand its operations at Dubai World Central by more than 300,000 square metres over the coming years.

Deutsche Post World Net (DPWN) Group, the parent company of DHL, has also announced an investment of Dh500 million into expanding their presence in the region at the new Dubai Logistics City (DLC).

DHL is 100 per cent owned by DPWN. The group generated revenues of 45 billion euros in 2005 and is presently celebrating its 30th year in the region.

Talking to Khaleej Times, Klaus Zumwinkel, Chairman and Chief Executive Officer of DPWN said: "With high economic growth, the Middle East is one of DPWN's most important regions. It is an emerging market that has the world's attention and as a result it presents a huge opportunity for our business."

The expanded facilities build upon the existing footprint of 85,000 square metres in the Jebel Ali Free Zone, which is operated by Danzas AEI Emirates. The group's logistics entity, which represents the DHL Global Forwarding and Exel Supply Chain business in this region, recently announced two additional signing agreements.

The first is on 30,000 square metres at the new Cargo Village Jebel Ali Airport forwarding area with an option for a further 15,000 square metres. It has also secured an additional 155,000 square metres in the DLC's specialised contract logistics area with an option for another 78,000 square metres.

"The investments in our new facilities will keep DHL at the forefront of the rapidly expanding logistics and express business," Zumwinkel added.

DHL Express, one of the four divisions of DHL, has outlined plans to further invest in an air integrator hub facility on a 50,000 square metres plot at the new World Central Airport in Jebel Ali. By recognising the strategic importance of the World Central Airport as a major gateway for the region, this hub facility will complement DHL's existing infrastructure network and provide long-term growth capacity to its current seamless Middle East air/road distribution model.

The investment and growth strategy of DPWN is backed up by its strong leadership position in the region, where major entities of the Group; DHL Express, DHL Exel Supply Chain and DHL Global Forwarding, are present in all countries in the region and employ over 10,000 people.

In 2001 DPWN acquired a majority (51 per cent) of DHL's shares, and the remaining (49 per cent) in 2002.