DHL: Lack of Big Box Spaces in the Industrial Market Affects Price Competitiveness; Understand the Concept

The name "Big Box" comes precisely from the common shape of these spaces, which resemble "large boxes," as the term suggests.

Danilo Marcuci, Director of Corporate Real Estate Americas at DHL Supply Chain, confirms a shortage of "Big Box" facilities in Brazil.

By: SiiLA News

08/05/2024

Logistics giants like DHL, a global leader in warehousing and distribution, require large spaces to accommodate the vast amount of cargo they transport and store.

DHL moves thousands of tons of cargo across the country and partners with industries and companies to ensure the quality of product storage.

However, the company is facing an issue in Brazil: the lack of "Big Box" industrial facilities. According to the multinational, the term refers to spaces over 15 thousand square meters, unmodulated, designed especially for large operations.

The name "Big Box" comes from the shape of these spaces, which resemble "big boxes," as the term's translation suggests.

In an interview with SiiLA's REsource portal, Danilo Marcuci, Director of Corporate Real Estate Americas at DHL Supply Chain, confirmed that although Brazil has made significant progress in constructing and operating large warehouses in recent years, there is still a need for more investment in "Big Box" facilities. "It is clear that there is a need to wait long periods or receive a low supply of larger warehouses for certain businesses," he commented.

DHL´s Current Occupancy Across Brazil

Source: Market Analytics/SiiLA

According to data from SiiLA for the second quarter of this year, DHL and DHL Express currently occupy 16 industrial facilities of A+, A, and B classes monitored by the Market Analytics platform in Brazil.

The company's total occupancy in monitored properties has been growing significantly in recent years and now stands at 237.4 thousand square meters.

Source: Market Analytics/SiiLA

Among the warehouses where DHL has the most occupancy is the CY.log Modal Extrema I, an A-class facility. There, DHL maintains a space of over 91.6 thousand square meters, corresponding to about 38% of the multinational's entire operation in the industrial assets of the mentioned classes.

In June of this year, DHL, in partnership with Sanofi, a healthcare company, announced a new distribution center (DC) in the city of Extrema (MG). Located within its industrial assets along the Fernão Dias Highway, the new warehouse features loading and unloading docks and three types of storage spaces: climate-controlled storage with temperatures between 15° and 25°C, an anteroom for handling temperatures from 8° to 16°C, and refrigerated storage from 2° to 8°C.

The facility was built from scratch and has all the necessary authorizations, licenses, and certifications for storing and receiving health products, including all types of medications.

DHL and Sanofi are already partners in operating a distribution center in Guarulhos (SP).

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