DHL Express invests US$50m in largest automated sorting centre in Israel

DHL Express has invested US$50 million in the largest automated sorting centre in Israel, located near Ben Gurion Airport in Tel Aviv, to keep pace with growing parcel volumes in the country.

The new centre represents the biggest investment DHL Express has made in Israel to date and the most recent in a series of investments made in the company's operations in the country, which in total amount to ILS 1 billion (€281.56 million).

The new 9,000 sqm facility, which will officially open on 20 January 2022, represents the most advanced and largest automated sorting centre in the Middle East region. It includes a new sorting machine that spans three floors and uses approximately 2,000 meters of smart conveyer belt systems, with the capacity to process 19,000 parcels of any weight or size per hour.

Faster cargo handling

Thanks to the new sorting centre, a parcel can be sorted and provided to the last-mile courier in 2.5 minutes from unloading. Furthermore, a cargo plane can now be handled in 50 minutes instead of four hours. The automated sorting system has reduced the requirement for manpower by 70%. As a result, several employees have been trained for other roles within the organisation, according to Reuters.

DHL operates two daily flights in Israel, allowing businesses to benefit from next-day delivery to the USA, Europe, and Hong Kong. With the outbreak of the COVID-19 pandemic, DHL Express was responsible for distributing most of the vaccines and a significant amount of other medical equipment delivered to Israel.

Yair Bitton, Managing Director of DHL Express Israel, said: “DHL Express handles about 50% of the import logistics in Israel, and we will continue to work diligently and with a sense of responsibility to further support the global expansion of Israeli businesses into the global market. Automation not only boosts productivity, but it also empowers our employees.”

“Unlike in the US, Europe, and the Far East, international ground shipping is not possible in Israel and therefore developing the air and maritime transport infrastructures is crucial. This is our responsibility and promise to importers and exporters in Israel,” Bitton added.

Going green

With a focus on sustainability, the facility features solar panels for renewable energy, recycles grey water (wastewater from showers, baths, basins, and washing machines) for car washing and has the necessary infrastructure to support a fully electric vehicle fleet in the future.

DHL Express has been operating in Israel since 1997 and employs 540 staff. DHL Israel is not a public company and therefore does not share its financial results. However, the average annual growth rate over the last few years is estimated at 25% year-over-year.