DHL announces development of major new $107 million East Coast Distribution Facility

Allentown, PA facility to enhance service

DHL announced plans to locate a new, state-of-the-art East Coast Distribution Facility in Allentown, Pennsylvania. DHL expects to invest $107 million in the development of the new facility, which will serve as a key distribution center for DHL’s network in the Northeast and Mid-Atlantic.

Planned as the principal DHL distribution center on the East Coast of the United States, the new Allentown facility will serve all major metropolitan areas in the region, including Philadelphia, New York City and Washington, DC. The facility will also provide additional capacity to serve the needs of DHL’s growing customer base in the US and enhance service levels for DHL customers across the country and around the world.

The new infrastructure investment in Allentown is part of a $1.2 billion North American network expansion program launched by DHL in June 2004. As part of this program, the company has already announced the location of a new West Coast Distribution Facility in Riverside, California, the build out of an expanded DHL Air & Ground Hub in Wilmington, Ohio, and the addition of seven new Regional Sort Centers.

The new Allentown facility will particularly benefit customers in Connecticut, New Jersey, Delaware, Maryland, Washington DC, eastern Pennsylvania and New York, including Philadelphia and New York City, as well as parts of West Virginia and Massachusetts by providing an increase in throughput capacity and allowing for more rapid and the most accurate sorting of customers’ materials through the use of state-of-the-art software technology, and sort-system equipment.

“DHL is a company built around the needs of our customers. Every facet of our business, including our people, products, services and infrastructure is focused on anticipating and meeting those needs,” said Fred Beljaars, executive vice president for operations, DHL Americas. “The development of this new, state-of-the-art distribution center in Allentown is one example of how DHL is focused on developing the most robust, most flexible network to enable us to provide the highest quality service to our growing customer base across the country.”

This new state-of-the-art facility will replace two smaller sorting facilities in Allentown and will initially employ at least 340 people from the local community when fully operational in the fall of 2006. Approximately 175 construction jobs will also be created while the facility is being built. The new facility will handle a wide variety of shipments, including letter-sized items, parcels, and palletized and container freight.

Additional key facts about today’s announcement include:

o Construction on the Allentown facility will begin in March 2005. The facility will be fully operational by September of 2006 and operate from 8:00 p.m. to 5:00 a.m., seven days a week

o The new facility will contribute an estimated $15 million to the local economy in the form of facility payroll and taxes

o The new facility will have a handling capacity of 40,000 letters per hour/45,000 parcels per hour

o The completed facility will have a base footprint of 290,000 square feet with an additional 200,000 square feet of mezzanine work space, and 12,000 square feet of office space

o By the end of 2006, 57 stations will be serviced by the new Allentown facility and there will be daily truck runs out of the facility to 10 regional hubs located across the US.