DHL Plans $1.2 Billion North American Expansion

DHL Plans $1.2 Billion North American Expansion

Copyright 2004, Traffic World, Inc.

German-owned express carrier DHL plans to spend $1.2 billion to upgrade and expand its network in North America to become a stronger competitor with FedEx and UPS.

DHL unveiled plans June 25 to build seven regional sort centers this year, a move expected to increase DHL''s ground delivery capacity by 60 percent.

DHL plans to built an additional five regional sort centers over the next several years, which will bring its total number of regional sort operations to 24, company officials said.

DHL also will move all its air hub operations to the Wilmington, Ohio airport the company owns. Wilmington is about 50 miles away from Cincinnati, where DHL has a $200 million facility.

The announcement comes a year after DHL bought Airborne Express minus its planes and weeks after it began a $150 million, six-month advertising campaign to raise its profile in the United States.