DHL invests $50 million in new Japanese logistics hub
DHL Supply Chain is beginning the construction of its new logistics center in Sagamihara, Japan this month, in the start of a comprehensive $50 million investment plan set to span over the next 10 years.
The new centre located in Sagamihara City, Kanagawa Prefecture, is a ‘stepping stone to further business expansion’, according to DHL, which plans to expand its total warehousing space in Japan by approximately 20 percent.
The building, which has a target completion date of March 2014, will be a multi-user hub facility with the warehousing area of approximately 44,000 sqm. DHL plans to use the facility to apply its global best practices and know-how to the Japanese market, using its expertise in the consumer retail industry to offer businesses in Japan advice on the quality, speed and efficiency in logistics services.
The site is close to National Route No.16 and the Sagamihara Interchange of the Keno Expressway (Metropolitan Inter-City Expressway, to be completed in FY2013 – FY2014), offering superior access to Japan's largest commercial zone, the Tokyo metropolitan area, as well as to airports and port facilities. With close proximity to the Ebina Interchange of the Tomei Expressway, the facility is also well-located for convenient distribution to western Japan. It is strategically located to maximize convenience for many customers in the consumer retail sector, including fashion and apparel, as well as the manufacturing sector, which requires efficient access to the metropolitan area and markets in central and western Japan.
DHL Supply Chain North Asia CEO Victor Mok said, "With Asia’s influence becoming more and more evident in the world economy, the consumer retail industry is placing a growing emphasis on conquering the Asian market. This investment reflects DHL's market superiority and confidence in its future growth potential. DHL will continue to provide services of the world's highest level in various markets."
Shuichi Kawamura, President of DHL Supply Chain Japan said, "The consumer retail industry involves fast-paced changes in market demand, and therefore has no time to waste in product introduction. For this reason, it is one of the industries that benefit from the strengths of the DHL Supply Chain, which boasts a global network of the world's largest scale and process under advanced quality control. As a leading company in 3PL, we will continue to deliver supply chain solutions that go one step ahead of customer needs so as to assist our customers' business and achieve further growth together."
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany