DHL Express Expands Mexico City Hub

Local authorities and private sector leaders announced the expansion of DHL Express’s hub in Mexico City, as part of the city’s logistics bet and recovery plan. The total investment for the expansion is MX$118 million (US$5.9 million).

Mexico City Mayor Claudia Sheinbaum explained that one of the government’s main objectives is to make the city a key logistics pole. The public sector is collaborating with companies within the logistics industry to foster investment and growth, she added: “[DHL Express’] investment is crucial for the city.”

The logistics sector’s growth is being driven mainly by the e-commerce boom caused by the COVID-19 pandemic, which boosted online shopping’s adoption in Mexico. In 2020, e-commerce grew by 81 percent and in 2021, it grew by 27 percent, as reported by MBN. Shipping, mail, transport and storage businesses represent 7 percent of Mexico City’s GDP, said Sheinbaum. In addition, until May 2022, there were over 3,200 logistics businesses in the city, generating more than 37,400 direct jobs.

“[Logistics] is one of the sectors that grew the most during the pandemic due to the growth of e-commerce. It is one of the industries that is growing the most in Mexico City and Mexico. The logistics sector grew by over 10 percent in terms of formal jobs during last year, so that is very good for the city in different ways,” said Sheinbaum.

The expansion of DHL’s hub in Mexico City expands the company’s operative capacity to process shipments, mainly international ones, explained Antonio Arranz, CEO, DHL Express México, during an event to announce the expansion. Also, the expansion will reduce delivery times and make processes more efficient. “The expansion will enable us to handle high volumes of shipments and to double the capacity from 2,200 pieces per hour to 5,200,” he said.

The expansion is not only focused on growing the international delivery business. DHL’s Mexico City hub will also strengthen its operations in the southern region of the country, mainly at destinations such as Cancun, Merida, Tuxtla Gutierrez and Oaxaca.

“[Our three hubs in Mexico] together make DHL strong enough to be able to deliver within 24 hours throughout the country and to be able to connect 220 countries and territories,” said Arranz.

The US$5.9 million investment adds to the over MX$460 million (US$23 million) that DHL has invested in Mexico between 2020 and 2022 to strengthen its hub network. The company’s 2020-2026 plan estimates a total investment of MX$6 billion (US$300 million) during this period.