Kuehne + Nagel targets top 5 contract logistics position

Kuehne + Nagel has today announced its medium-term development plans in contract logistics for the UAE and greater Gulf region. Key to the company’s expansion strategy is its second logistics hub in Dubai, which will go into operation in the course of next year, strategically located in Dubai Logistics City.

Kuehne + Nagel has been active in the United Arab Emirates since 1977 and is today firmly established in international forwarding in Dubai and across the Gulf region. Over the past years, Dubai has developed into an important logistics and distribution hub for the Middle East –a region that is strengthening its role in global trade. Increasingly, major international companies are setting
up production facilities and building up stocks in Dubai, and Kuehne + Nagel is adapting to this development.

Speaking at a press conference today in Dubai, Dirk Reich, EVP Contract Logistics and member of the Management Board of Kuehne + Nagel International AG, said, “Kuehne + Nagel is aligning its activities to meet the dynamic Middle East logistics market requirements. By 2010, we plan to
significantly expand our contract logistics operations and capacity across the entire Gulf region to over 200,000 sqm. At the heart of this development will be our new integrated facility in DLC, which will provide us with the perfect conditions to push and leverage this growth. Ultimately, our objective
is to become one of the region’s top five contract logistics providers.”

Kuehne + Nagel last September signed a lease agreement for an area of 52,000 sqm in Dubai Logistics City (DLC), paving the way for the development of the company’s Dubai base into the principal Kuehne + Nagel distribution hub for the Middle East. Upon completion of the first phase of construction, the new facility will go into operation mid next year, featuring 15,000 sqm of logistics and warehouse space – with the option to expand to a total of 30,000 sqm. The new facility will complement the company’s existing 16,000 sqm logistics terminal in the Jebel Ali free trade zone.

Kuehne + Nagel will be able to leverage Dubai Logistics City’s considerable advantages for its regional expansion strategy. The proximity to Dubai World Central International Airport, which is to become the world’s largest cargo airport, as well as the single customs bonded free trade zone linking DLC with Jebel Ali Port, offer ideal conditions to optimally manage and integrate regional
and international supply chains intersecting in Dubai.