Deutsche Post DHL's US$1B investment in German parcel delivery infrastructure and UPS' US$200M investment in European air hub outside Cologne to boost country's logistics profile

Liling Tan

BERLIN and PHILADELPHIA , October 4, 2011 (press release) – Deutsche Post DHL is investing over 1 billion dollars (EUR 750 million) in its German parcel delivery infrastructure. UPS also announced a 200 million dollar investment in its European air hub outside Cologne. These investments confirm Germany's position as the motor of European logistics. Germany Trade & Invest will have representatives at this year's Annual Meeting of the Council of Supply Chain Management Professionals from October 2 - 5 in Philadelphia to discuss business and investment opportunities in Germany.

"Germany is the prime location for companies to rapidly deliver goods to both eastern and western Europe. Its central position in Europe is a natural advantage, but the outstanding infrastructure and market size are the country's trump cards. Companies can save time and money here," stated David Chasdi, logistics industry expert at Germany Trade & Invest in Berlin.

The UPS investment is the company's largest ever outside the United States. The company will increase its package handling capacity at its Cologne/Bonn facility, the company's hub in Europe for over 25 years. DHL has not made investments of this magnitude since the 1990s. Its goal is to speed up its package delivery times to that of a letter (typically 1-2 business days in Germany).

Both companies are responding to rapid growth in e-commerce in Germany. The country's logistics industry is consistently Europe's largest by far in terms of annual revenues. Germany is well known worldwide as a top exporter, but the country also imports more than almost any other country. This year the country's infrastructure was ranked second worldwide behind Hong Kong by the World Economic Forum.

Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.

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