The logistics firm DHL is to expand in the UK in response to the growth in home deliveries, setting up new depots and enlarging others, which will create more than 4,000 jobs.
The German company said it would invest £482m across its UK e-commerce operation, DHL Parcel UK, following a 40% rise in volumes since the start of 2020, when the coronavirus pandemic led to a surge in online shopping.
More than £190m will be spent on creating 10 new collection and delivery depots across the UK, while 20 more existing sites will be expanded. This is set to create 3,500 jobs at the depots.
The locations of the new sites have been chosen to reduce the distance required to serve customers, enabling further rollout of electric vans and improving speed of service, the company said.
Nearly half of the overall investment will go towards building a new 25,000 sq metre hub in a Segro warehouse park south of Coventry airport, which will be able to handle more than 500,000 items a day and is expected to create more than 600 new jobs, including warehouse, driver, administration and management roles.
The hub will have a 48-door cross-dock facility so that products from a manufacturer are distributed directly to customers, with little or no storage required. The hub will also use high-speed equipment for automatic sorting of items of different sizes and weight.
DHL is spending £64m on upgrading its fleet, buying six fully electric trucks, 30 liquefied natural gas trucks and 18 electric tugs. Overall, parent company Deutsche Post DHL Group plans to spend €7bn (£6bn) on sustainable fuel and clean technologies by 2030.
Peter Fuller, the chief executive of DHL Parcel UK, said the expansion would put the business “at the forefront of sustainable and digital logistics” and help it take advantage of future market growth. “E-commerce is going to continue to shape the world around us.”
The UK is in the midst of a warehouse boom to support the growth of online shopping. Segro, the UK’s biggest warehouse and data centre operator, has been building huge sheds across the country.
Gerry Grimstone, the minister for investment, hailed the expansion as a success of the government’s levelling up agenda.
“With investment comes jobs and a boost to local economies, so I look forward to seeing the Midlands continue to flourish and promoting our commitment for a cleaner and greener future.”
