Developing South Africa as a logistics hub is key to DHL’s long term growth plans for the region as the company invests over R300 million in both its Supply Chain and Global Forwarding divisions in South Africa.

Through two new warehouses and a head office in Plumbago, near OR Tambo International Airport, the company is consolidating its operations within Africa and the emerging economies.

Roger Crook, CEO, DHL Global Forwarding and Freight, Member of the Board of Management, Deutsche Post AG, at the opening said “Part of our global three pillar Strategy 2020 is to focus on further expansion of logistics services in the world’s emerging markets. Today, emerging market revenues contribute just over 20 percent of the Group‟s revenues; by 2020, the Group expects this figure to climb to 30 percent.”

The new premises for DHL Global Forwarding comprises 12 000m2 of warehouse space and 5 500m2 of office space.

Twine Mtya, CEO, DHL Global Forwarding, Southern Africa, says, “Our new investments are necessary to support our growth and expansion plans in South Africa. In addition to our established Air and Ocean freight services, we have seen particular growth in our robust intermodal road network, spanning 12 African countries – road freight volumes have more than doubled in the past year, spurred by increasing demand and economic growth on the continent.”

In consolidating its DHL Supply Chain’s operations; DHL Supply Chain’s 25,000m² multi-user warehouse facility will be used to consolidate its technology client portfolio, as well as some key fast moving consumer goods (FMCG) clients. The facility has been purpose-built for the technology and consumer industries including speciality designs such as high density storage up to 16m in height for FMCG companies; optimised operational flows; a super flat floor necessary for such high-level storage and retrieval; and the latest technology on reach trucks.

Craig Roberts, CEO, DHL Supply Chain – Middle East and Africa, states, “We are implementing international best practices at Plumbago, and this will become the model for other facilities across the country.,”

“Such investments are long-term in nature, and reflect DHL Supply Chain‟s commitment to Africa.”

“We have an ambitious growth strategy for this region and intend to use our South African assets as a springboard into the rest of Africa.”

The warehouses also boast eco-friendly features including energy efficient lighting system, and rain water harvesting for vehicle washing. Plus the consolidation and relocation nearer to OR Tambo Airport, client distribution centres and retailers, also reduces the company’s carbon emissions.