DHL to Open Kansas City, Kan., Distribution Facility
Posted on: Thursday, 8 September 2005, 21:00 CDT
Sep. 9--DHL, an international express delivery company, is opening a $3 million distribution facility in Kansas City, Kan., this weekend that will employ 130 people.
The 68,678-square-foot Kansas City Regional Sort Center will serve DHL customers in Missouri, Kansas, Iowa, Nebraska, and parts of Arkansas and Oklahoma. It is at 435 River Park Drive. Operations are scheduled to begin Sunday.
Robert Mintz, a company spokesman, said the new facility will take the place of a smaller operation in Columbia. The workers in the new center will be employees of ABX Air Inc., which has a contract with DHL.
DHL is a subsidiary of Deutsche Post World Net, a German company.
Kansas City was chosen for the facility because of its good transportation network.
"With the relocation of the hub, we can expand our overnight coverage in several cities," Mintz said.
The company estimates that the new facility will add $2.2 million annually to the local economy through employee payroll and taxes.
"It is encouraging to see major companies like DHL expand and invest in Kansas," Gov. Kathleen Sebelius said in a statement. "With this new investment in our state, our community will benefit by the creation of new jobs and increased revenue to the tax base."
Bob Marcusse, president and CEO of the Kansas City Area Development Council, said DHL's decision to locate in Kansas City was in line with efforts to promote the metropolitan area as a national distribution center.
"It clearly continues to strengthen the strategy of focusing on regional and national transportation and distribution," Marcusse said.
The new DHL sorting center will operate six days a week and has a capacity of up to 7,000 pieces an hour. It will serve 27 service stations in the region. It is part of a $1.2 billion investment the company is making nationwide.
"The new facility in Kansas City will enhance our network operation by enabling us to provide the highest-quality service to our growing customer base across the country," Fred Beljaars, DHL executive vice president for operations, said in a statement.
DHL competes with FedEx Corp. and United Parcel Service Inc. for customers. Earlier this year, FedEx announced plans for a new distribution center in the Northland Park industrial area of Kansas City.
The FedEx Ground Package System facility is expected to employ more than 800 full- and part-time workers by 2011. The value of the completed project is estimated at $76.1 million.
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Source: The Kansas City Star (Kansas City, Missouri)
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