DHL investing 156m in its infrastructure to support the UK export market
Global logistics firm DHL, which first started operating in the UK in 1974, has announced a new two-year £156 million investment in a bid to boost UK exports.
It will increase capacity for express shipments across DHL UK sites and bolster its customers' overseas growth ambitions
The largest scale spending is going to the East Midlands Airport hub and southern hub site near Heathrow, totalling £90m and £32m respectively.
Phil Couchman, Chief Executive of DHL Express in the UK & Ireland, said: "As we celebrate DHL's 40th year in the UK, this investment demonstrates our confidence and commitment to enterprise and British export businesses.
"We've already invested £2m in our Oxford and Park Royal sites in the past two years and have seen the benefits that this brings. Developing our infrastructure is integral to support growth in the UK export market and will allow us to cater for future demand.
Additional sites in Manchester, Croydon and Sheffield will also benefit from crucial changes to their infrastructure, including additional warehousing, sorting facilities and up-to-date operational processes.
At a news conference at the company’s West London headquarters, it confirmed the infrastructure upgrade has been prompted by increased demand for British goods from China, as well as a boom in global e-retailing.
Couchman added: "International trade is a golden opportunity for many businesses in the UK and through this major investment we can partner with and help facilitate success for them."
This investment in the UK forms a key part of DHL’s global growth and service improvement strategy, following the recent investment of £103 million in the Middle East, which included building five new facilities in Egypt, Saudi Arabia and Dubai.
Ken Allen, Global Chief Executive of DHL Express “With ongoing growth in the US and the development of our European hub in Leipzig, we’re strengthening our leadership position through improved service capabilities.”
The company forecasts that e-commerce could increase from 8pc of the total trading in Europe to 40pc by 2025.
With 46,000 staff, Deutsche Post DHL is one of the UK’s biggest foreign employers. Sales have recovered dramatically over the last five years as the group has repositioned itself to benefit from online sales of consumer goods between China, Europe and North America.
In 2013, Deutsche Post DHL posted revenues of more than £44 billion.
Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.