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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...

Freddie Pierce
|Apr 3|magazine6 min read

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."