DHL Boosts Supply Chain Business with Over EUR 90 Million Integrated Warehouse Facility in Singapore

SINGAPORE, May 14, 2014 /PRNewswire/ --

• Plans significant investments in technology, automation, transportation capabilities, warehouse footprint and employee expertise by 2018
• Builds 90,000-square meter multi-user warehouse facility in Tampines LogisPark  to meet customer demand in aerospace, healthcare and technology sectors
• Houses Asia Pacific Solutions & Innovation Center (ASIC), the first DHL innovation center outside Troisdorf, Germany, and is set to be the Center of Excellence for innovative logistics services and solutions in the region

DHL Supply Chain, the global market leader for contract logistics solutions, today shared its planned investment for its business in South East Asia at a ground breaking ceremony at Singapore's Tampines LogisPark, unveiling the blueprint of its new integrated build-to-suit (BTS) logistics warehouse facility worth more than EUR 90 million. The DHL Supply Chain Advanced Regional Center is a combined investment of approximately EUR 23 million from DHL and over EUR 70 million from Cache Logistics Trust, the appointed logistics real estate solutions provider. The investment will further enhance DHL Supply Chain's market leadership across key aerospace, healthcare and technology industries, and grow its business in the region's emerging markets.

DHL Supply Chain Advanced Regional Center (ARC), a new integrated build-to-suit (BTS) logistics warehouse facility in Singapore, is worth more than EUR 90 million.

DHL Supply Chain Advanced Regional Center (ARC) will occupy the largest parcel of land in Tampines LogisPark, spanning nearly 60,000 square meters and boasting a warehouse floor area of over 90,000 square meters.

"DHL's investment of approximately EUR 23 million from 2015 to 2018 will focus on strengthening warehouse facilities, transport capabilities, IT and people," said Oscar de Bok, CEO, South and South East Asia, DHL Supply Chain. "By the time of completion, we plan to increase the staff strength in Singapore to over 2,000. This will contribute to our regional goal of reaching 25,000[1] staff by 2015, an increase of 65% from 2014."

Oscar added, "Since the announcement of our regional growth strategy in 2013, DHL has committed a total investment of EUR 140 million across South and South East Asia. In addition to the DHL Supply Chain Advanced Regional Center, we have planned for many more facilities in the years to come."

Expanding DHL Supply Chain's footprint in Singapore

The investment in the DHL Supply Chain Advanced Regional Center will increase DHL's warehouse capacity in Singapore by 40%, and will enable its regional customers in the aerospace, healthcare and technology sectors to benefit from the advanced technology and automation solutions. This facility will occupy the largest parcel of land in Tampines LogisPark, spanning nearly 60,000 square meters and boasting a warehouse floor area of over 90,000 square meters.

The Asia Pacific Solutions & Innovation Center (ASIC), the first innovation center for DHL outside Troisdorf, Germany, will be the first Center of Excellence for innovative logistics services and solutions in the region. The state-of-the-art facility will serve as a regional platform to engage customers, industry partners and the Singapore research and government community on business and innovation-related matters. Besides live demonstrations of the latest logistics trends and innovative solutions, the Innovation Center will set new industry standards through the set-up of several competence centers dedicated to identifying, monitoring and harnessing specific logistics industry trends and market developments.  

The ASIC will also house the world's first Center of Excellence for Automation. The facility will be designed for complex multi-sector and multi-user operations, showcasing cutting-edge automation solutions such as an automated storage and order picking system. In addition, DHL will recruit and train a local team of skilled specialists in automation for the new facility.

"This state-of-the-art facility exemplifies how the logistics industry in Singapore can achieve operational excellence and productivity gains through innovation and automation," said Jason Goh, Managing Director, DHL Supply Chain Singapore. "The automation technology will reduce the time required to pick, pack and ship items, enabling faster order fulfillments. Our continued focus on improving workflow processes has already resulted in a 25% growth in topline revenue in Singapore since 2008."

Tapping opportunities in South East Asia

The DHL Supply Chain Advanced Regional Center forms part of DHL's growth strategy for the South East Asia region, where the company plans to expand its capacity by 50% from 2015 to 2018 in anticipation of the region's increasing market opportunities. The company's investments will focus on building new facilities, advancing IT solutions, expanding transportation and bolstering staff strength and training.

Additionally, the DHL Supply Chain Advanced Regional Center will enhance Singapore's position as a regional supply chain hub to multinational corporations (MNCs) which value the application of integrated technologies to achieve greater productivity, cost savings and operational efficiency in their supply chains.

Construction of the new facility is expected to be completed by the second half of 2015. DHL's Asia-Pacific, Middle East and Africa (APMEA) regional office and Singapore country office will then be re-located to the premises.

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