Contract logistics provider DHL Supply Chain has announced plans to invest R220-million into a new multiuser distribution centre in Johannesburg, Gauteng, reinforcing its longterm commitment to South Africa and its focus on supporting customer growth and supply chain capacity expansion.

The project will involve the demolition of the existing site and the development of a new greenfield distribution centre facility.

The facility will support customers in the consumer goods sector, including fast- moving consumer goods (FMCG), enabling local and crossborder order fulfilment, while providing operational flexibility and long term scalability.

Construction is scheduled to start in July, with the facility expected to become operational in July 2027.

The investment was part of the private sector pledges announced on March 31 at the South African Investment Conference (SAIC), a flagship platform led by President Cyril Ramaphosa and the Presidency to mobilise domestic and foreign investment, drive job creation and strengthen investor confidence. This announcement reinforced the commitment and confidence in the partnership between government and private sector more especially that of DHL and the government of South Africa.

“This investment reflects our longterm confidence in South Africa as a strategic logistics hub and our commitment to expanding capacity in line with customer growth. “In a market where customers are increasingly focused on reliability, speed and costtoserve, the right infrastructure helps remove friction and gives customers the confidence to scale.

“Its announcement at the SAIC reflects the longterm nature and scale of the investment,” says DHL Supply Chain Middle East and Africa chief commercial officer and Africa MD Bremer Pauw.

The project is expected to contribute meaningfully to employment, with about 70 jobs supported during the construction phase and around 90 permanent roles created once the facility is operational.

The new facility will be developed as a carbonneutral site and will be HAdvanced certified, aligning with DHL Group’s sustainability ambitions. It will also incorporate modern materials handling solutions, including electrical tow motors and equipment, to support more efficient and futureready operations.

The investment also forms part of DHL Group’s broader commitment to sub Saharan Africa. In 2025, DHL Group announced a planned investment of around R5.8-billion across the region to expand logistics infrastructure and strengthen service capabilities across its divisions, including DHL Supply Chain.

South Africa remains a key pillar of this strategy, given its role as the region’s largest and most diversified economy and an important gateway for trade into and across the continent.