UPS and FedEx rival DHL said Jan. 18 it is expanding its presence in the Memphis area with a new service center that will serve the tri-state area of Arkansas, Mississippi and Tennessee. The $2.5 million investment was driven by the company’s current and forecasted shipment growth from local businesses trading internationally as well as e-commerce shipping, DHL officials said.
DHL moved from an 11,000-square foot facility to the new 30,000-square foot facility, which can process more than 2,500 shipments per hour. It is located adjacent to the Memphis International Airport, and operates as the local center for pick-up, delivery and sorting operations of international shipments.
Located at 3560 Air Center Cove in Memphis, the facility will provide enhanced services to customers since it’s situated closer to the airport and can take advantage of process efficiencies from a larger building footprint.
“Memphis is a top metro area for exports, and as a leading international shipping provider, we are keeping pace with the tremendous growth from the area’s global businesses,” said John Fox, DHL Area General Manager, Southeast U.S. “This new facility will not only support customer shipment growth, but will also allow for earlier delivery times and later drop-off times for international importers and exporters.”
DHL said the state-of-the-art facility will handle a variety of shipments, including international small parcels as well as palletized and container freight. It features a large customer counter, expanded parking lot, and several dozen pick-up and delivery vehicles fueled by clean, safe and economical propane autogas.
In 2014, based on revenue, UPS had the largest share of global market share in the express and courier service market at 19.6%. Memphis-based FedEx was the second largest at 14.2%, following by DHL at 9.4%.