DHL, one of Northern Kentucky’s largest employers, is investing $192 million into their North American superhub at the Cincinnati/Northern Kentucky International Airport.
The announcement comes nearly a week after the Kentucky Economic Development Finance Authority approved $1 million in tax incentives for the German shipping and logistics giant to expand their operations at CVG. Currently, their 194-acre campus employs over 3,000 workers.
The investment includes the development of a 305,200-square-foot aircraft maintenance facility located on a 50-acre plot of land south of DHL’s current CVG campus. Additionally, eight new aircraft gates at DHL’s current ramp are planned. These gates will repurpose the existing aviation and line maintenance space at Building Three on DHL’s campus. The project is expected to create 86 full-time jobs, according to DHL officials.
“Our Americas hub at CVG is one of three DHL global superhubs and completes the backbone of our intercontinental network,” DHL Express Americas region CEO Mike Parra said in a press release from the governor’s office. “With its strategic location at the heart of our U.S. network, the CVG hub plays a vital role in our regional operations and the service we provide to our customers.
Kentucky Gov. Andy Beshear commented on DHL’s investment in CVG by thanking the company for their “continued commitment” to the commonwealth.
“Kentucky has one of the strongest distribution and logistics sectors in the country, and DHL plays a major role in that success,” Beshear said in the release. “The commonwealth’s ideal geographic location and access to resources make it incredibly easy for companies to reach their consumer base in a timely and efficient manner.”
First touching down at CVG in 2009, DHL finished constructing its North American superhub in 2013. Its CVG campus deals with shipments heading for the United States, Canada, Mexico and Latin America. It processes approximately 50 million international shipments annually. The facility is one of three DHL superhubs worldwide; the other two are located in Hong Kong and Germany.
“DHL is a valued long-time partner, and we’re pleased they continue to invest at CVG. DHL’s global superhub is an integral part of our regional and state economy,” CVG CEO Candace McGraw said. “Its success is contingent on having the facilities and workforce able to serve the global air cargo industry, and this development aligns with our vision to expand aircraft maintenance and support services on campus.”
DHL’s most recent large-scale investment in the airport came in 2016 when the company spent approximately $108 million to increase the campus’ cargo sorting capacity and ability to accommodate more aircraft. In recent years, they’ve made other multi-million dollar renovations, including installing aircraft handling equipment, auto-sort systems and various facilities enhancements.
CVG has made a concerted effort to increase the airport’s cargo footprint since DHL’s arrival in 2009. DHL’s presence helped pave the way for Amazon Air to choose CVG as the site of their global superhub, which opened in 2021.
Between 2015 and 2022, CVG experienced a 149% increase in cargo. In May, CVG Vice President of Air Service Development Bobby Span touted that CVG was North America’s seventh-largest cargo airport and the fourteenth-largest in the world.
The tax incentives approved by the state for DHL are part of the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use taxes on construction costs, building fixtures, and equipment used in research and development and electronic processing.
