Rising cold storage demand drives DHL’s $400M expansion

Dive Quick:

• DHL is investing $400M to extend its pharmaceutical and healthcare device distribution network footprint by 27% — about 3 million additional sq. ft — this year, in accordance to a press launch. A spokesperson explained the shift is in reaction to elevated need for Fda-regulated and temperature-controlled storage.
• The expansion involves 6 new amenities, which will be completely-accredited and temperature-managed area that supports pharmaceutical storage necessities, in accordance to the push release.
• The investment decision will broaden DHL Supply Chain Existence Sciences & Health care websites to 34 by the finish of 2022. Two of the 6 new web-sites will be located in the Atlanta region, with the other people in Cincinnati Memphis, Tennessee Reno, Nevada and Lebanon, Pennsylvania.

Dive Insight:

Desire in chilly storage for prescribed drugs and professional medical units is on the increase and logistics service companies are paying close awareness. International cold chain expending is envisioned to develop practically 24% concerning 2020 and 2024 to attain $21.3 billion, according to Biopharma Chilly Chain Sourcebook.

“We acknowledge that demand will only intensify in the foreseeable future as the market develops its reaction to the COVID-19 pandemic and adjusts to new approaches of addressing patients’ day-to-day healthcare needs,” Jim Saponaro, president of life sciences and health care at DHL Source Chain North The us, stated in an e mail to Source Chain Dive.

DHL Supply Chain’s Lifetime Science and Well being Care sector has around 150 amenities in over 40 international locations and serves 250 daily life sciences and health care customers around the globe. The 3PL did not disclose which providers it truly is operating with but Saponaro said, “our partnerships exist with some of the world’s greatest pharma/health-related device firms.”

The $400 million financial investment focuses on “bigger degree of around-shoring — through natural production and CMOs. As opposed to ‘Just In Time,’ pharmaceutical is building out for ‘Just In Case,’ thanks to the nature of classes realized in the pandemic,” explained Saponaro.

This is just not the very first time DHL has responded to sector trends. In reaction to an improve in B2C need, its eCommerce Remedies division introduced very last yr an expenditure of $300 million to develop its U.S. distribution community, adding additional automation to its services. And in 2019, the business upgraded its 434,000-square-foot chilly storage facility at Chicago O’Hare Intercontinental Airport to deploy new technological know-how to sustain cold temperatures within the facility.