Deutsche Post DHL said it plans to begin construction this year of Germany’s largest parcel center as part of a $975 million investment to upgrade its nationwide network to keep pace with surging online shopping in Europe’s leading economy.
The 40,000-square-meter (430,556 square feet) facility in Obertshausen, near Frankfurt, will have a sorting capacity of 50,000 items per hour when it opens in 2014.
“This investment represents another important milestone for our new parcel concept,” said Uwe Brinks, chief production officer at Deutsche Post DHL.” The result will be one of the largest and most modern parcel centers in Europe.”
Deutsche Post is building the new center in partnership with Alpha Industrial, a leading German logistics property manager with a 650,000-square-meter portfolio.
The company said its network upgrade, involving new technologies and production processes at 33 distribution depots across Germany, has already boosted capacity 15 percent since its launching a year ago.
Deutsche Post’s parcels unit handles more than 2.6 million shipments daily and accounts for 20 percent of its mail revenue.
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