DHL Invests JPY 9.9 bn into Largest Distribution Center in Japan

· The new Osaka Distribution Center will increase shipment processing capacity by more than 50%

· At just a 20-minute drive away from downtown Osaka, the facility brings greater convenience to customers in the Kansai region

DHL Express, the world's leading international express service provider, will be opening its newest and largest distribution facility in Japan -- the Osaka Distribution Center (ODC) at Sakai city, Osaka-fu. At an investment of JPY 9.9 billion (EUR 79.9 million), the new facility is the largest-ever facility investment that DHL Express has made in Japan.

ODC brings together three separate DHL facilities under one roof -- the Kansai Airport Gateway, Kansai Airport Service Center, and the Osaka Central Service Center. With 21,000 square meters of floor space in total, the ODC is DHL Express' largest distribution facility in Japan. It is equipped with a sophisticated auto-sorting system that increases DHL's shipment processing capacity by more than 50% compared to the previous facility at Kansai International Airport (KIX).

"Despite the challenges of the Covid-19 pandemic, Japan's export activity is recovering and the strong sustained growth in e-commerce will increase the demand for faster and more reliable deliveries. We are confident in the economic growth of the country and the ODC will make sure we are well-positioned in the long run to address the increasing demands in e-commerce shipping," said Ken Lee, CEO of DHL Express Asia Pacific.

The ODC relocated from the grounds of Kansai International Airport (KIX) and brings greater convenience to customers in the Kansai region due to its proximity to downtown Osaka city, which is just a 20-minute drive away. In addition to new sorting systems, state-of-the-art x-ray inspection machines have also been added to meet the ever growing needs of shipment security. Operations at the ODC will cover import and export clearance, bond warehousing, sorting, and distribution.

"As the leading express company in Japan, the new facility is evidence of DHL's long term commitment to continuously improve to better service our customers in the Kansai region and beyond," said Tony Khan, President and Representative Director of DHL Japan. "While the Covid-19 pandemic continues to create uncertainty around the world, DHL Express has been essential in connecting people and improving lives. That is why we are investing in the new ODC and enhancing our capabilities, to help our customers in this region grow their business and improve their quality of life."

With the opening of the Osaka Distribution Center, DHL Japan will cease operations at its Kansai Airport Gateway and Kansai Airport Service Center. The full address of the Osaka Distribution Center is: 3F, Mitsui Fudosan Logistic Park, 1-171 Chikko Yawata-machi, Sakai-ku, Sakai-shi, Osaka 590-0901

DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world".

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 63 billion euros in 2019. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

[Source: Media OutReach - 25 November 2020]