DHL invests 126.5m rand in South Africa’s retail warehousing, logistics sector in expansion drive

By Charles Abuede

DHL Global Forwarding, in a strategic move that will see it reinforce its commitment and cement its market-leading position in South Africa has announced the investment of 126.5 million South African rand into a new warehousing facility in Johannesburg.

The new investment deal will see DHL Global boast of 10,000 square meters of warehousing space, doubling the existing capacity to meet future demand.

Clement Blanc, DHL’s country managing director for South Africa, speaking on the economic impact of the investment, said: “While it’s too early to fully grasp the economic impact of the current pandemic, our confidence in investing ahead of the curve is abetted by our diverse service portfolio and long-established foothold in Africa. As the world’s largest free trade area moves toward economic integration, our five-year strategy to sharpen our core business offerings and accelerate digitalization will further our growth in the region and specifically, in South Africa.”

Blanc also revealed that the new facility allows the leading global forwarder to merge all its customers’ warehousing supplies, support other value-added services, including cross-docking, storage for air, ocean and road freight services, and a platform for breakbulk cargo.

“Custom-built to our world-class specifications and located in proximity to the airport, arterial thoroughfares and upcoming industrial parks, this new facility will be the game-changer for DHL in the country. We are well-poised to focus on delivering excellence to our customers as we surround ourselves with the critical infrastructure that is needed to enhance our productivity and efficiency,” Blanc explained.

Meanwhile, industry experts who are familiar with the matter regarding the plans by DHL Global Forwarding group, have expressed optimism that the commitment of the government to improving investment and efforts to revitalize townships and industrial parks will reap much-needed benefits.

DHL South Africa also disclosed that it signed a ten-year lease for approximately 13,000 square meters of office and warehousing space located at the newly developed Skyparks Business estate.