Deutsche Post DHL will invest $1 billion in its domestic German parcel delivery service to keep pace with surging online shopping.
The global mail, express and logistics company will spend the money modernizing 33 distribution depots across Germany in the next three to four years.
"This is the largest investment in our parcel infrastructure since the 1990s,” said Jurgen Gerdes, a corporate board member of the company’s mail division. “ It will expand our leading position in the market and ultimately make our parcel business the second strong pillar of our mail business.”
Deutsche Post’s parcel revenues have increased by 3.5 percent annually since 2007 and grew 10 percent year-on-year in the first half of 2011. The parcel unit, which handles 2.6 million shipments a day, now accounts for 20 percent of Deutsche Post’s mail revenues.
DHL transports more than 2.6 million parcels daily, and that number doubles during the holiday season. The company’s investment will increase parcel center’s hourly capacity from 20,000 pieces to up to 50,000 pieces at some locations.
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