DHL will invest C$100 million to quadruple capacity at its Toronto-area gateway to handle growing volumes of cargo.
The investment will fund a new facility at Hamilton International Airport, located 50 miles from Toronto, boosting the size from about 50,000 to 200,000 square feet. A fully automated sorting system will handle up to 15,000 packages per hour.
Hamilton is DHL Express’s largest Canadian gateway, handling 60% of all shipments in the country. DHL said that its Canadian shipments have doubled since 2014.
“Hamilton International Airport offers us the benefits that we need to meet our growing demands in handling capacity,” said Andrew Williams, CEO of DHL Express Canada.
“With 24-hour landing capability, dedicated onsite Canada Border Services Agency representation and the ability to grow in the future with a partner positioned to become the cargo hub of Ontario, we know this is the best decision to continue leading the market.”
The Greater Toronto Area, with about 6 million people, is one of the fastest-growing regions in North America, second only to the Dallas-Fort Worth area, according to a 2019 study from Ryerson University.
DHL’s investment in Hamilton comes as Purolator grows its capacity with a C$1 billion investment, including a superhub near Toronto.