DHL Global Forwarding is literally building and driving towards a greener future. The company released three press releases this week, all with very different, tangible sustainability efforts: the construction of a new air cargo center at Frankfurt Airport, a joint venture launch together with Saudi Arabia’s Aramco, and lastly, a (second) truck called Paul.
But first to the reasons behind the smiles in this article’s image. Anke Giesen, Executive Director Retail and Real Estate at Fraport AG (owner and operator of Frankfurt Airport) and Tobias Schmidt, CEO of DHL Global Forwarding Europe, are pictured at the historic moment: officially breaking the ground at Frankfurt Airport and triggering the start of construction of a new air cargo center in CargoCity South, that is planned to go into operation in around 12 months’ time – i.e. mid-2025.
Anke Giesen announced: “Today’s groundbreaking of this first-class air cargo center is part of the continuous development of Frankfurt Airport as Europe’s leading air freight hub. This building will meet the strictest ecological and economic requirements for modern freight handling facilities. As such, it will put our future tenant, DHL Global Forwarding, in the best position to take its air freight business to the next level. The realization of this complex project is also a testament to the extraordinarily broad portfolio and proven expertise of Fraport’s real estate development team.”
Expanding and modernizing
Tobias Schmidt, CEO of DHL Global Forwarding Europe, said: “Located in the heart of Europe, Frankfurt Airport is of central importance as an international hub for our global air freight network. We’re very pleased that we were able to develop a larger, more sustainable site in close cooperation with Fraport. The newly created space will enable us to handle greater transport volumes for our customers even more quickly and efficiently.”
Already its largest German air freight facility, DHL GF’s newest site at CargoCity South, close to Airport Gate 31, measures around 55,000 m². The building which is being constructed according to sustainable standards, is designed to include c. 24,500 m² of warehouse space along with 3,000 m² of flexible office space and social areas. 25 truck parking spaces, 185 car spaces, 54 gates and cross-docks and well laid out driving and shunting areas complete the planned construction. DHL GF “will primarily handle air freight for its German and international customers and manage charter flights with its in-house service provider StarBroker. The new cargo center and office complex will partly supplement the existing airport location, and offers not just additional transshipment space, but also room for the new StarBroker European headquarters of DHL Global Forwarding,” the release concludes.
ASMO is a joint venture with Aramco
Saudi Arabia’s leading integrated energy and chemicals company, Aramco, has partnered with DHL Supply Chain to form a joint venture company: ASMO. This stands for ‘Advanced Supply Management Operations’ and is a new Procurement and Logistics Services Hub in Saudi Arabia which aims to increase efficiency in energy, chemical and industrial supply chains. It will deploy digital technologies, using Artificial Intelligence (AI), Data Analytics, and Blockchain, and benefit from automation and collaborative robotics, all aiming at creating sustainable processes and driving circular economy practices. ASMO will connect suppliers and customers through a brokerage model, reducing the need for inventory holding and reducing costs, and optimizing cost savings, procurement, and logistics.
ASMO statements
Salem Al Huraish, Chairman of ASMO, stated: “We have formed ASMO, with the vision to establish sustainable solutions for the modern supply chain challenges we all face. […] we are intent on creating value by driving efficiencies and enhancing the reliability of supplies, making them less vulnerable to disruptions, while focusing on sustainability and lowering carbon emissions.”
Wail Al Jaafari, Aramco Executive Vice President of Technical Services, commented: “ASMO will not only work on advancing the economic interests of Aramco and DHL, but it plans to also help accelerate growth across the industrial sector of Saudi Arabia and the MENA region while supporting the Kingdom’s 2030 vision of becoming a global logistics hub.”
Oscar de Bok, DHL Supply Chain CEO, explained: “By uniting the expertise of DHL Supply Chain and Aramco in this new joint venture, we aim to break free from traditional procurement and logistics constraints, responding to the evolving dynamics of global supply chains. ASMO is the region’s first hub providing a comprehensive and integrated end-to-end supply chain service offering for businesses in the energy, chemical and industrial sectors. ASMO plans to redefine the way these companies will procure, store and transport goods and services within, to and from Saudi Arabia and the wider MENA region, seeking to drive efficiencies, cost savings and economies of scale.”
A (second) truck called Paul
To date, DHL Freight operates around 150 ‘green’ vehicles across Germany. The mix of battery-electric vehicles for local transport and bio-CNG and bio-LNG vehicles for long-haul transport, are either carbon emission-free or have significantly reduced greenhouse gas emissions. It also already operates a hydrogen truck for the Post & Parcel Germany division at its Cologne West facility. A second hydrogen truck is now being introduced for a one-year pilot for distribution and line hauls at the Cologne location. These ‘Paul Hydrogen Power-Trucks’ are based on Mercedes-Benz Atego and manufactured on behalf of Shell in Vilshofen, South Germany, by special-purpose commercial vehicle maker, Paul Nutzfahrzeuge GmbH.
The two 15.6-ton trucks offer a range of around 400km with a trailer or 600km without a trailer, and are operated by DHL Freight and Post & Parcel Germany using Shell’s Hydrogen Pay-Per-Use platform model which includes a hydrogen refueling infrastructure and service. “With hydrogen trucks, only water vapor comes out of the exhaust. If the hydrogen used is produced with green electricity, the reduction in greenhouse gas emissions can be up to 100%,” the release details.
DHL is trialing all kinds of sustainable drive solutions as it works towards reducing emissions to less than 29 million tons by 2030. More pilot projects using battery-electric vehicles for long-haul transport or hydrogen-powered tractor-trailers are still to come this year.
Dr. Thomas Vogel, CEO of DACH, UK & IE DHL Freight, detailed: “In the realm of road transport, where no single alternative drive technology has yet emerged as the clear winner, it is crucial for us to maintain a technology-neutral approach and continue testing various sustainable solutions. This includes not only battery electric trucks but also hydrogen vehicles, which excel in longer distances due to their impressive range and quick refueling capabilities. Our ultimate goal is to determine the optimal combination of technologies and drive systems to achieve our net-zero emissions logistics target by 2050.”
