Massive UPS, DHL Investments Boost German Logistics Infrastructure

Deutsche Post DHL is investing more than $1 billion (€750 million) in its German parcel delivery infrastructure. UPS also announced a $200 million investment in its European air hub outside Cologne. These investments confirm Germany's position as the motor of European logistics. "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 more than 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.

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