The Deutsche Post’s logistics pillar has opened a new distribution center at Madrid Barajas Airport. It comprises a total of 32,000 square meters and facilitates the sorting of up to 24,500 packages per hour, thus four times more than what has been possible before.
For a long time, Madrid Barajas Airport has played a manageable role as regional sorting and distribution center within DHL Express’ network. Last week, however, MAD’s importance was catapulted
steeply upwards, with the launch of a new distribution center. Suddenly, DHL’s station in the Spanish capital stood in the spotlight, becoming a member of the major league of Express hubs or la
Primera Division as local soccer aficionados would translate – at least from DHL’s point of view.
200 new jobs
The branch plant’s sudden advance is based on a 93 million euros investment spent for building a new state-of-the-art facility equipped with latest technology for sorting goods fast and efficiently, and 176 loading docks allowing 160 road movements each day. This way, the integrator’s previous sorting capacity has been quadrupled, leading to 200 new jobs. The investment became necessary due to the fast increase of e-commerce goods passing through MAD but also the constantly swelling amount of other time critical consignment.
Combination of main deck and belly hold utilization
DHL Express itself operates 10 freighter flights each day in and out Madrid, utilizing small ATR72 freighter aircraft on short-haul routes but also larger B757Fs and A300Fs on medium range sectors. “From MAD we operate flights to Brussels, Leipzig, Porto, Vitoria, Amsterdam, Frankfurt, and Algiers,” illustrates Directora de Comunicacion España Marisol Gómez. Conversely, all-cargo services from East Midlands, Brussels, Leipzig, Amsterdam, Frankfurt, and Algiers land in Barajas, she says. Mrs Gómez adds to this that MAD is a 24/7/365 airport, allowing both cargo and passenger airlines timely unlimited utilization. Night flights are paramount for integrators such as DHL Express to comply with delivery times promised to customers.
The main deck capacity of freighter aircraft serving MAD is complemented by passenger airlines landing or departing there, carrying freight in their lower deck compartments. This way, DHL Express’ Madrid Hub is connected to Brazil, Argentina, Chile, the U.S. (Miami, New York, Cincinnati), Perú, Panamá, Cuba, Colombia, Paraguay, Uruguay, Costa Rica, Mexico, and the Dominican Republic. Quite an impressive network serviced both ways across the North and South Atlantic.
Freighter fleet keeps growing
DHL Express stresses that their investment in the hub is visible proof of the company’s long-term commitment to growth and a response to the dynamic needs of a growing global market. Further to this the integrator points out that all processes at their new hub are in accordance with their GoGreen Program, this a major contribution in the company’s effort to reduce their carbon footprint. This will be achieved through “the use of new and more efficient sorting technology, improved building insulation, and more efficient energy systems to manage the consumption of electricity, water and cooling systems,” a DHL Express release reads.
Their long-term commitment to growth is also reflected by the purchase of 14 new B777 freighters and five Airbus A330Fs. This brings the total number of freighter aircraft owned and operated by them to more than 260 units.
StreetScooter gets new chief
In a separate proclamation, DHL parent Deutsche Post announced the appointment of Joerg Sommer as CEO of their StreetScooter daughter company as of April 1. From his previously-held position as COO at U.S. electric commercial vehicle manufacturer Chanje, Sommer will be moving from California to Aachen, West Germany to join StreetScooter’s management team as the new helmsman. StreetScooter which was incepted in 2010 produces electrically powered vehicles emitting zero pollution, thus tailored for parcel distribution in urban and densely populated environments.
Deutsche Post DHL Group continued growth in 2018
The company announced on March 7. that growth was substantial during 2018 as the group revenue increased by 1.8% to a total of euros 61.6 billion. They further state that when taking the adjustments for currency and portfolio effects into account, that the actual increase was even greater at +6.0%. The Operating profit (EBIT) went up to 3.2 billion euros and the company’s guidance planning indicates that operating profits in 2020 should reach 5.0 billion euros.
The DHL Express sector also showed a strong growth with revenues increasing by 7.3% to EUR 16.1 billion. This growth pattern was shown across all DHL Express regions. The company states that the strong growth was driven by their time-definite (TDI) delivery sector, where they say daily volumes went up by 7.4% compared to the previous year.
And - last but not least - the Global Forwarding Freight division also had a good year. Revenues increased by 3.4% to EUR 15.0 billion and the gross profit for the division went up by 3.9% to 3.6 billion euros. The gross profit increases were registered in the air, ocean, road and rail transport sectors.