Kuehne & Nagel announced that it has begun construction on Dubai Logistics City on 52,000 square meters of land in Dubai World Central, the city-within-a-city being developed in Jebel Ali.
The Swiss-based company said its long-term lease on the property paves the way for development of the complex into its principal distribution hub for the Middle East.
The new facility will become operational in mid-2008 when Kuehne & Nagel opens the first phase of construction featuring 17,000 square-meters of warehouse space, with an option to expand to 30,000 square meters. The new facility will complement the company's existing 16,000-square-meter logistics terminal in the Jebel Ali Free Zone.
Total capacity will exceed 20,000 pallet locations, with over 5,000 square meters of handling area for value-added services such as kitting and final assembly activities. Special security requirements as well as dedicated storage and handling equipment for customers from the high-tech and pharmaceutical industries are also included in Phase 1.