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Tag: Distribution Centre

CBRE: warehouses are getting bigger

Posted on by Keith McKinley

The average unit size of European logistics lettings has increased more than 60% since 2011, according to the latest research from global real estate advisor, CBRE.

The average deal size reached 11,000 sq m in the first half of 2022. This has been driven by third-party logistics operators, retailers and manufacturers searching for assets that can offer them economies of scale in their operations and provide enough room for increases in their inventories.

Furthermore, XXL warehouses (units of 50,000 sq m or more) now account for 24% of total take-up, compared to just 11% in 2011. This makes them a very relevant segment for the industry and often represent key strategic investments from occupiers.

The data from CBRE also shows increased appetite from manufacturing companies to get XXL logistics facilities in Europe, as they seek to bring supplies and stock closer to their end consumer. Germany, the UK, France, the Netherlands, Poland and Spain have been the most attractive locations for manufacturers to establish their XXL warehouse locations in Europe. However, this trend is flourishing across the continent.

Joerg Kreindl, Head of Occupier Industrial and Logistics, EMEA at CBRE, said: “Not only are we seeing warehouses growing in square footage terms, but the volume of these large deals is also increasing. We expect this trend to continue over the next few years, paired with consolidation of supply chains and producing economies of scale to occupiers.”

 

Smooth docking at Evri superhub

Posted on by David Priestman

As one of the UK’s largest delivery companies, Evri sorts and delivers millions of parcels every day. With ambitions of adding greater capacity to its nationwide network and strengthening its regional operations, the company – formerly known as Hermes – committed to creating a third superhub.

Situated on a 42-acre site in Barnsley, the 340,000 sq ft facility is the largest of its kind in Europe and represents a £60m investment by the firm. Responding to the growing demand generated by online shopping, the automated parcel distribution hub will take Evri’s national capacity to 4.2 million parcels per day.

A key aspect of the building is the 163 docking bays; lining two sides of the superhub, they provide the entry and exit points for every one of the 1.1 million parcels making their way through the facility each day during peak periods. This high volume of parcel traffic makes the vehicle docks an integral component in smooth and efficient parcel distribution.

Efficient doors for Evri

To equip the superhub with the docking solutions it required, Evri turned to long-term partner Assa Abloy Entrance Systems for a range of expertly designed systems. Centred around the OH1042P Insulated Panel Door, the solution for each loading bay also benefits from a DS6060P Mechanical Curtain Dock Shelter and a DL6120T Telescopic Lip Dock Leveller.

Providing a reliable, robust and well-insulated operational entrance, the OH1042P Insulated Panel Sectional Doors used in each bay maximise free space by opening vertically, or up and over ceilings, conveyors or mezzanines as required. Paired with a hard-wearing twin-ram hydraulic Teledock which ensures an adjustable, ergonomic and seamless contact between vehicle and dock, Evri’s team can get to work loading and unloading vehicles at each dock quickly, safely and easily.

Surrounding each dock system is the Mechanical Shelter, which provides weather protection during the loading and unloading process. For staff, this creates a safer and more comfortable working environment internally, while adding greater protection to parcels, ultimately improving standards through Evri’s processes.

For a long-term solution, however, several variants needed to be considered. From everyday high-volume use through to differing trailer types which will be regularly docking in the bays, the experienced Assa Abloy Entrance Systems team tailored each product specifically to Evri’s requirements.

Reduced window size

On the doors themselves, window sizes were reduced to limit the potential of accidental impact damage; buffers were modified to provide more robust protection to the building fabric and docking equipment; and the levellers and shelters themselves were adapted to accommodate different trailer bed designs and those of varying heights and widths – a crucially important consideration at a time when new trailer types are being introduced to improve vehicle efficiency.

Elsewhere on Evri’s 42-acre site in Barnsley, a dedicated Vehicle Maintenance Unit is regularly servicing and maintaining the fleet which moves parcels between hubs. Here, Assa Abloy Entrance Systems provided the 1042P Sectional Doors in level access arrangement. As well as maximising the opening area for vehicles to drive through, the doors also house larger windows, allowing more natural light inside the building whilst enhancing visibility of the yard. Simple, practical solutions designed to create safer and more comfortable environments for the superhub’s maintenance engineers.

Future-proofing smooth operations

Now Evri’s super hub is fully operational, the next challenge lies in keeping every door system and dock operating smoothly. Afterall, they’re the start and end of each parcel’s journey through the facility and need to remain operational round the clock.

Besides ensuring precisely designed, crafted and installed engineered solutions, Assa Abloy Entrance Systems is delivering a service and maintenance programme. Combined, this approach reduces lifecycle cost over the complete operational life of each door system, cuts the potential for unforeseen downtime and equips Evri with entrance systems they can rely on day after day.

As part of the service and maintenance programme, Assa Abloy Entrance Systems says it takes a two-pronged approach. Firstly, it schedules planned preventative maintenance at set periods and will see every opening asset on site serviced to keep them operating as expected. Secondly, the company provides immediate hands-on support when the unexpected happens, ensuring any system faults are quickly resolved by expert engineers.

Philip Whiteley, of Assa Abloy Entrance Systems, said: “Through our work with Evri, we have helped them to fulfil their ambitions of creating a major element of their nationwide distribution infrastructure which is able to cope with significantly heightened capacity. With the latest entrance systems in place, they can process more parcels more quickly than ever.

“We’re excited to be continuing our work with Evri over the coming years as we provide regular servicing and maintenance which will keep things running smoothly and, ultimately, reduce costs over their entire service life.”

 

DHL Supply Chain develops carbon neutral warehouses

Posted on by Keith McKinley

The real estate experts of DHL Supply Chain, the global contract logistics provider, have developed a carbon neutral real estate portfolio of 400,000 sq m to support customers’ growth requirements across six European Tier 1 markets. Located in central logistics areas, all sites will benefit from excellent multi modal transport connectivity, designed to serve customers across different sectors.

All buildings will have modern technical specifications, reflecting a campus concept and become mission-critical hubs for DHL Supply Chain and its national and international customers. The 14 units, constructed across 10 development sites, are located across major logistics markets in Germany, Netherlands, Sweden, Finland, Italy and Poland. All buildings will meet key sustainability criteria such as BREEAM Excellent and EPC A, comply with EU taxonomy and undergo a Carbon Risk Real Estate Monitor (CRREM) assessment.

“The development of 400,000 sq m of carbon neutral warehouses is an important strategic step as we aim to meet our customers’ growing demand for more sustainable warehouse space in strategic markets,” says Hendrik Venter, CEO DHL Supply Chain EMEA. “All assets we develop are underpinned by excellent fundamentals; be it sustainability, digitalisation, location, demographics or tenure. Connectivity or proximity to key sales markets help us improve delivery times for our customers, while a close eye on the surrounding social factors and communities in which we operate help us to generate attractive jobs and ensuring us access to a loyal and capable workforce. These factors help us and our customers to be even more successful and lead the way into a more sustainable future.”

DHL Supply Chain finds strategic partner

For a first tranche of this 400,000 sq m warehouse portfolio, DHL Supply Chain has already found an investor and strategic partner. Allianz Real Estate, acting on behalf of several Allianz Group companies, and DHL have entered into a purchase agreement for the sale of the first half of the portfolio. The warehouses, which are set to be completed between Q1 2023 to Q1 2024, will represent one of Allianz Real Estate’s largest single logistics sector acquisitions, in terms of gross leasable area, to date: in total the five facilities will cover over 200,000 sq m.

DHL Supply Chain will occupy at least 85% of the facilities developed for Allianz Real Estate on long-term leases post completion.

“We are very proud to be able to offer our clients effective growth opportunities, with warehouses that are not only located in core markets and fulfil our clients’ needs, but also meet the highest ESG and sustainability criteria,” says Joe Mikes, Global Head of Real Estate Solutions at DHL Supply Chain. “This enables us and our customers to create business opportunities that are compatible with our Sustainability Roadmap, which aims to make every aspect of the supply chain more sustainable which of course also includes our real estate. We are very much looking forward to many more such projects in the future.”

www.dhl.com/us-en/home/supply-chain.html

Garbe plans logistics property in Lüneburg

Posted on by David Priestman

Garbe Industrial Real Estate is continuing to expand its portfolio of logistics centres in the Hamburg metropolitan region. To this end, the Hamburg-based project developer has purchased a plot of land in Lüneburg that is around 33,000 sq m in size and ready for construction. A logistics property with a total area of approx. 20,000 sq m is to be built on this site. Construction is scheduled to begin in June 2023. Garbe Industrial Real Estate will invest €33m in the project.

“Lüneburg is one of the most dynamic business locations in the Hamburg metropolitan region. The city has innovative companies, qualified professionals and good infrastructure. Therefore, it was only a matter of time for us to become involved in this attractive environment,” emphasises Adrian Zellner, Member of the Executive Board of Garbe Industrial Real Estate. The Hamburg-based project developer acquired the property from Sallier Bauträger GmbH & Co. KG, with whom it has a long-term partnership and who is also responsible for marketing the logistics space.

The property is located in the Lüneburg-Ost industrial park, only a few hundred metres from the harbour of Lüneburg and the Elbe Lateral Canal. The A 39 motorway can be reached within ten minutes via the main roads 216, 209 and 4 without any local transit. The A 39 connects Lüneburg with the Maschener Kreuz interchange and from there with Hamburg via the A 1 and A 7. “The central location and the connection to both the highway network and the public transport system played a major role in opting for this location,” says Zellner. The nearest bus stop is at about 400 metres from the plot.

A logistics property with a height of 12.2m (lower edge of truss) and a total hall area of about 17,500 sq m is planned. One of the units will be sized about 7,000 sq m, the other approx. 10,500 sq m. In addition, there will be around 440 sq m each for offices and social rooms. A further total of approx. 1,600 sq m is planned for storage mezzanines. The new building will be equipped with 17 dock levellers and two ground-level sectional doors. Parking spaces for 60 cars and four trucks are to be created on the outdoor area.

The property is planned according to current ecological standards. For example, a powerful photovoltaic system is to be installed on the roof to generate renewable energy. Heat pumps will be used instead of fossil fuels. Another measure is the installation of energy-efficient LED lighting. For the new building, Garbe Industrial Real Estate is aiming for certification in accordance with the Gold Standard of the German Sustainable Building Council.

“Having already successfully implemented several projects in the northern and eastern surrounding area of Hamburg in recent years, we are now pleased to realise another new building in the southern surrounding area,” says Zellner. “The demand for modern logistics space in the metropolitan region has been at a constantly high level for years. That is why we have decided to realise the property with a view to the future and without a firm tenant commitment. Based on the positive initial talks with potential users, we assume that the property will be let during the construction phase.” The new building is scheduled for completion in the second quarter of 2024.

In the Hamburg metropolitan region, Garbe Industrial Real Estate is currently involved at four other locations, for example in Kaltenkirchen (Segeberg district). A logistics property with a total area of 25,500 sq m is under construction there for the Picnic online supermarket. In Stapelfeld (Stormarn district), a 22,300 sq m logistics centre for the online furniture retailer Sobuy Commercial is scheduled to be ready for occupancy by the end of the year.

 

Panattoni leases Warsaw DC to TSL client

Posted on by Keith McKinley

Panattoni, a European industrial real estate market leader, has its first development for DTW Logistics – a rapidly developing company from the TSL sector. The tenant is to occupy over 25,000 sqm in Panattoni Park Warsaw West located in Błonie, and is to start using the leased space from April 2023.

The operations of DTW Logistics are based on delivering professional national and international shipping services for the road transportation of  normal, refrigerated and hazardous (ADR) goods. The company also provides logistics services. Błonie, where the company started its operations in Poland, remains a key location for the company. With the new space provided by Panattoni, once again the company will be able to increase the scale of its fulfilment and contract logistics operations.

DTW Logistics has leased over 25,000 sq m in Panattoni Park Warsaw West and, as part of the project, it is to consolidate its operations in the region under one roof. The company is to make use of an illuminated co-packing area, a bonded warehouse and large parking areas. Moreover, the development is to be equipped with a host of sustainability solutions that will allow the building to acquire BREEAM environmental certification with a rating of ‘Excellent’.

“Once again, Panattoni’s intensive work in the Warsaw region opens up new development opportunities for our clients,” says Olga Wałkiewicz, Senior Development Manager at Panattoni. “This attractive location will allow DTW Logistics to further develop in what is a strategic market for the company and the tenant will also transfer its operations to more modern space, allowing them to optimise many of their operations. It’s a wonderful feeling to add another company from the TSL sector to Panattoni’s clients. We hope that we will have many more joint developments together in the future.”

Panattoni Park Warsaw West  is located next to National Road 92, with the A2 motorway being under half-an-hour’s drive away. This connects it to the most important logistics centres in Central and Eastern Europe including Warsaw, Łódź, Poznań and Berlin. The development is around 40 minutes from the centre of Warsaw and just over half an hour away from Chopin International Airport. Eventually, Panattoni Park Warsaw West will have a full build out area of 91,000 sq m in three buildings. Currently, the first of these with an area of 31,190 sq m has been completed and has already been fully leased out. The modern facilities are suitable for a varied range of operations including warehousing, production, logistics and servicing e-commerce.

 

LED Showcases Warehouse Lighting

Posted on by Keith McKinley

Ledvance is showcasing a range of lighting solutions to satisfy the unique requirements of production and storage facilities. Visual performance, comfort and ambience are key to such environments, and are impacted by the illumination level, quality of glare and brightness distribution of their lighting installations.

The requirements for a lighting system in a storage environment are diverse and a flexible system that can be easily adapted to changes in working processes is essential. The TruSys Flex Dali system is an ideal lighting control for an entire building that can manage over 1,000 individually addressed luminaires across rooms and floors, operated by simply using a pushbutton or app for smartphones/tablets. Energy-saving LED technology provides continuous operation and homogenous light distribution, with tool-free click into place solutions for an easy installation. Flexible application is possible due to a range of different lumen packages and beam angles.

A typical high-bay warehouse is characterised by high ceilings, narrow aisles and hardly any natural daylight. In addition, the large difference in brightness between indoor and outdoor areas produces a high risk of accidents in entrances and exits. Even from an exceptional ceiling height of nine metres, the Ledvance High Bay Dali LED luminaires provide uniformly good illumination, and the daylight control of the Dali-2 drivers enables additional potential for energy savings.

The luminaires can be combined with Vivares Dali light management, including presence and daylight control, for ultimate efficiency. For harsh industrial environments, the luminaires carry increased shock resistance (IK08), dust-proof design and protection against water jets (IP65).

In a production environment, the demands for a lighting system are varied: from rough manual work to fine assembly activities and visual inspections. The Ledvance Damp Proof Gen 2 Dali meets all these requirements with its high protection against shock, dust and water. It is fitted with easy to open/close stainless-steel fasteners without sharp edges, and holes for anti-vandalism screws. In a recent installation by Ledvance, a production facility measured an increase in illuminance of 20%, coupled with an impressive 68% reduction in energy costs. The luminaires can additionally be combined with Vivares Dali light management for further energy savings.

Loading areas are often particularly busy at night. With large trucks manoeuvring and goods being loaded and unloaded, the area quickly becomes crowded and difficult to keep track of. This makes lighting that provides orientation and safety all the more important. The Ledvance Floodlight performance is ideal for loading zones, as well as for facade illumination and lighting close to buildings. Energy savings of up to 90% can be achieved, compared to lighting with conventional technology, and the floodlight offers illuminance of at least 50 lux on average for busier areas. The floodlight also features strong robustness, including protection against moisture.

For facilities looking to retrofit LED lamps into an existing lighting solution, the Ledvance LED Tube range is an ideal first step. A stand-out product for production and storage environments is the LED Tube T8EM PRO, which has a full-glass portfolio to protect against bending and a shatterproof protection sheet. The product is VDE certified according to IEC62776 and low flicker according to EU 2019/2020 (SVM ≤0,4 / PstLM ≤ 1). The instant-on light operates in combination with sensor technology and the lamp also works at low temperatures.

 

St. Modwen lets Hatfield DC to Yodel

Posted on by Keith McKinley

Logistics developer and manager St. Modwen has acquired a c.170,000 sq ft cross-docked distribution centre in Hatfield, Hertfordshire, UK.

The high-specification distribution warehouse is located on the Hatfield Business Park, one of the South East’s premier distribution centres located  close to the A1 and M25, and just 22 miles north of Central London. The property is fully let to parcel delivery service Yodel, serving as one of its three national distribution hubs.

The asset comprises of high-quality distribution space, including 158 dock level loading doors, 233 HGV parking bays office accommodation and a staff welfare facility.

Hatfield is an established distribution location in the South East of England, with 83% of the UK’s population accessible within a four-hour HGV drive time. In addition, the local area’s population is forecast to grow by 4.7% over the next decade, compared to the UK average of 1.7%.

James Cooper, Head of Transaction, St Modwen Logistics, commented: “There has been a long-term shortage of modern logistics space across many areas in the South East of England. This is a rare opportunity to acquire a high-quality, exceptionally located warehouse let to a leading UK business, and continues our growth in the highly competitive submarkets in and around London.”

 

Construction starts on UK’s biggest Spec Shed

Posted on by Keith McKinley

Panattoni, the largest logistics real estate developer in the UK and Europe, has begun speculatively developing 1.3 million sq ft of logistics space, which will include the UK’s largest-ever speculative logistics building, in Avonmouth, Bristol.

The £280 million development, Panattoni Park Avonmouth, comprises of two units a 406,000 sq ft and 882,000 sq ft. The larger of the two will be the UK’s largest-ever speculatively built warehouse. Both units are being built in one phase and are expected to be completed in September 2023. ISG has been appointed main contractor.

The units will be built to a targeted BREEAM rating of ‘Excellent’ and an EPC rating of ‘A’ and benefit from extensive 50m yards, 17m + clear internal heights, generous car and lorry parking, and 8MVA of power.

Panattoni Park Avonmouth is strategically positioned for local and national distribution, London and the wider south east markets, Avonmouth Docks, Royal Portbury Docks, Bristol Airport, Avonmouth Rail Freight Terminal and Bristol Parkway train station, given the quick access to both the M4 and M5 motorways. The development is located close to leading logistics occupiers such as Amazon, DHL, The Range, TESCO and Lidl.

James Watson, Head of Development Southern England & London, Panattoni UK, said: “We closed the purchase of this site despite the current macro-economic challenges, but have conviction the logistics occupier market will continue to perform. Our continued commitment to the ‘big box’ market is shown with this being the largest speculative development in the UK. We are glad to be on-site with construction, providing much-needed space for such a supply constrained market. Practical Completion of Panattoni Park Avonmouth is September 2023.”

Robert Dobrzycki, CEO & Co-owner Panattoni Europe and India, said: “Developing the largest-ever speculative logistics building in the UK is testament to our global strategy of scaling up our developments at the highest level of quality and reflects our continuing confidence in the logistics sector as well as our desire to provide much-needed space for our international client base. Quality and a proven investment model – not just price competitiveness – are becoming our distinguishing factors in the real estate market.”

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DB Schenker to open logistics centre in Czechia

Posted on by David Priestman

DB Schenker, one of the leading global logistics service providers, will be opening a new site in the Prague region next year. The highly automated fulfilment warehouse will expand the company’s logistics capacities and shortens delivery times. Along with retail operations, the new distribution centre will also manage B2C e-commerce activities, including an extensive value added services area addressing the demand for personalised products requested by consumers.

“DB Schenker has experienced outstanding success since its entry into the Eastern European market,” says Ingo Brauckmann, Executive Vice President Contract Logistics / SCM Europe at DB Schenker. “The new automated fulfilment centre, will enable us to expand our capacities and improve our performance, thereby setting the stage for further growth in the region. We are thus now ready to expand and improve the services we offer to our rapidly growing customer base.”

Efficient and innovative fulfilment has become more important as e-commerce logistics operations continue to expand and automation helps increase capacities and make the supply chain more resilient.

The new distribution centre will offer excellent service quality – made possible by a highly scalable, modular G-T-P (goods-to-person) system combined with an extensive conveyor system and a high-performance cross-belt sorter for shipping parcels that will be provided by DB Schenker’s partner Körber. Indeed, Körber’s software solution will control more than 100 autonomous mobile robots (AMRs) that will be part of the highly automated logistics ecosystem. The facility will thus feature one of the largest AMR deployments of its kind in Eastern Europe.

Despite the high automation level, the distribution centre will require more than 1,000 operators at peak times.

The centre, which will be located near Prague Airport and a major highway that runs to Germany, will enable very short delivery times to customers in Central and Eastern Europe.

The new DC is scheduled to begin operating in the summer of 2023. The current distribution centre, which is also located in the Prague region, cannot accommodate the future demands of the customer. The current site will not be closed but used for reverse logistics services to meet our customers’ circular economy needs and reduce their digital carbon footprint.

Herfurth Logistics moves into Brussels Airport  

Posted on by Keith McKinley

Less than a year after the foundation stone was laid, Herfurth Logistics and its Brucargo Air Freight division have taken occupancy of their brand-new logistics building located in the heart of the cargo area of Brussels Airport. A building combining modernity, modularity and sustainability thanks to the numerous technologies that cut down on energy consumption, one of the priorities of Brussels Airport Company, which thus continues its investments in the cargo area.

Herfurth Logistics has been a partner of Brussels Airport for many years and has recently exchanged its two old buildings for a brand-new second line building on a site of more than 8,300 sq m. Brussels Airport Company has invested in the construction of this new building, in line with the company’s Real Estate strategy, which consists of investing in real estate development in order to offer modular buildings for rent.

With a total volume of almost 63,000 cu m, the new building combines a 5,000 sq m warehouse, including eight loading and unloading bays, with 700 sq m of offices spread over three floors. Like the other new buildings at Brussels Airport, it was built using sustainable construction materials, including an all-concrete skeleton with light grey insulated concrete panels and black and white insulated steel sandwich panels, as well as aluminium joinery.

Reducing energy consumption was a priority for the new building. For example, 100 solar panels were installed on the roof and three rainwater tanks supply the flush mechanisms of all the toilets. LED interior lighting with sensor, mechanical ventilation, heating and cooling via a heat pump are also some of the features of the new Herfurth Logistics building. It also comes with charging stations for electric cars and a covered bicycle parking area.

Herfurth Logistics and its Brucargo Air Freight division currently employ around 40 people at the logistics site at Brussels Airport. Herfurth was one of the first concessions granted at the Brucargo site. The acquisition of Brucargo Air Freight in 2016 (building 740) combined with the end of the concession at building 727 in 2010, as well as multiple developments, meant that the infrastructure requirements were no longer compatible with the existing sites.

Herfurth Logistics sets itself apart from its competitors by a highly personalised approach to its customers in order to gauge their exact needs and the specific characteristics of their business. This strategy has enabled Herfurth Logistics, in addition to its traditional import-export forwarding and Cross Docks Operations activities, to become a key player in the fields of logistics and transport of aircraft and helicopters (Heli-Aviation Logistics).

The handling of perishable goods (with a brand new 400 sq m cold store), Project Cargo (M-Star Projects), customs and excise management and unaccompanied luggage are other main areas of expertise. In terms of destinations, Herfurth operates world-wide and can rely on an international network of agents. The Democratic Republic of Congo, Rwanda and Burundi are a few of Herfurth’s main destinations from its branch at Brucargo.

Thanks to its new facilities, Herfurth will be able to shore up its existing niche activities but also develop new ones in order to be omnipresent in the logistic chain with an indisputable added value. These facilities will be an undeniable asset in attracting new skills, as well as young and not so young employees who want to work in good conditions in a sustainable environment that takes account of the ecological constraints of our future.

 

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