LOGISTICS
New Waves in Europe,
Canada ... Even the States Asia is not the only place UPS SCS is growing. The company just picked Roermond, The Netherlands, for a new hub the first time the company has chosen to buy greenfield property there. "Based upon our growth structure there, we decided to purchase a piece of land," Hundelt says. An already large two-DC operation there is situated well logistically to serve France, Germany and the southern portion of Eastern Europe. The new 200,000-sq.-ft. (18,580-sq.-m.) project, expected to be ready in the first quarter of 2006, will also be well-situated for getting in and out of the company's recently expanded air hub in Cologne, Germany. The overall land and facility investment on the 419,806-sq.-ft. (39,000-sq.-m.) site is $17 million, and UPS holds the option to purchase an additional 377,000 sq. ft. (35,000 sq. m.). Company officials also credited the presence of ports of entry such as Amsterdam's Schiphol Airport and Rotterdam's harbor in aiding its decision.
In Europe, like other places, Hundelt says each project has its unique characteristics. But he adds that having a real estate development partner that may already have land ready to go makes things easier. He says the entire process involving permitting and other approvals usually falls into a nine- to 18-month window. "It's the right time to make an investment in that area," says Hundelt of the Roermond project, adding that Poland, Russia and the Czech Republic are all growth areas for the company. A week after the interview, the company purchased U.K.-based LYNX Express, a parcel company with its own logistics division, to further cement its European presence. It's also the right time for Burlington, Ont., outside Toronto, where a large campus environment will occupy some 800,000 sq. ft. (74,320 sq. m.). The larger of two buildings there will be dedicated to consumer goods and high-tech business, while the smaller will focus on the needs of the pharmaceutical and medical device sectors. The complex will start with 115 loading doors with space for installing 35 more. "By centralizing logistics capabilities into the new multi-client campus," said Brad Mitchell, UPS Supply Chain Solutions managing director for Canada, at the project announcement in May, "UPS will streamline the supply chain for our customers to provide greater efficiencies and cost savings for both intra-Canada and cross-border distribution." That's not the only development UPS is tossing to Ontario. A month later, the company announced it would order 800 trucks worth US$45 million from Navistar subsidiary International Truck and Engine Corp. of Chatham and DaimlerChrysler-Freightliner company Sterling Truck Corp. in St. Thomas, to beef up its U.S. fleet. |
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