death by exaggeration
DHL’s decision to exit the domestic U.S. market on Jan.
30—and the thousands of layoffs that have occurred at the
company’s Wilmington, Ohio, air hub—has led some
media outlets to predict dire straits for the farm town of
12,000. In late January, the TV newsmagazine “ 60 Minutes”
aired a segment painting a stark picture of the toll DHL’s
decision is having on Wilmington’s citizenry. And this magazine recently predicted that Wilmington would be “staring
into the economic abyss” due to DHL’s pullout.
Well, not so fast.
The city has received 11 replies to an informal request for
proposals on how to transform the Wilmington Air Park,
which had been DHL’s primary domestic and international
shipping hub. Included were proposals to turn the complex
into an international logistics hub linked to China, continuing to operate it as an air freight facility, and developing an
aircraft maintenance and repair operation.
Cincinnati-based airport planner Landrum & Brown was
most aggressive in pushing the concept of an international
logistics hub, noting that the air park has sufficient capacity to
accommodate wide-body freighter aircraft and ancillary services; an available, educated work force that is familiar with air
cargo operations; and a location in America’s heartland.
Dan Muscatello, managing director at the planning firm
and an air cargo industry veteran, acknowledges that
Wilmington might be better off if it were closer to highways
that connect Ohio with Northeastern and Southeastern
markets. In its proposal, Landrum also notes that
Wilmington may have trouble growing its market as an
international air cargo and logistics center because of its
proximity to Chicago’s O’Hare International Airport. But
the $250 million to $300 million in improvements DHL
made to the park in the past four years will allow a tenant
to get up and running without much capital investment,
neutralizing any geographic disadvantages associated with
the park’s location, he adds.
For now, everything hinges on DHL’s plans for the park,
short takes
Two super-post-Panamax cranes have arrived at the Port of
Tacoma, Wash. The cranes, which measure 273 feet at the
apex and can service a vessel 24 containers wide, are being
installed at Washington United Terminals, which is the
home of Hyundai Merchant Marine and Mitsui O.S.K. Lines.
... Wesley International has created a new operating division to provide order fulfillment technology. The new division, to be known as Alexa, is a result of Wesley’s alliance
with FastFetch. ... A. Duie Pyle, a regional transportation
and logistics service provider on the East Coast, is expand-
go figure …
$2.045
The nationwide average cost of a gallon of diesel fuel
as of March 13, 2009. The all-time high of $4.76 a gallon was hit in the summer of 2008.
which it still owns. The company continues to handle about
90,000 international shipments nightly, far below the 1. 5 million average nightly shipments it handled when it also operated domestic service. DHL also has contracts through
September with its two flying contractors, Astar Air Cargo and
Wilmington-based ABX Air. The city hopes DHL will donate
the park and then maintain its international presence there.
DHL announced last May that it would turn over its
domestic flights to UPS, which would route DHL packages
through its own air hub in Louisville, Ky. However, no deal
was struck, and many insiders believe UPS, caught off guard
by DHL’s Nov. 10 announcement that it would pull out of the
United States, will eventually end negotiations because the
relationship is no longer economically attractive. DHL, for its
part, says it is exploring other options for flying services.
John Mullen, DHL Express’s CEO, told DC VELOCITY on Feb.
3 that the company remains “very committed to our full international presence in the United States” and that there are no
plans to further downsize what’s left of its U.S. operations even
if losses remain high. Mullen affirmed DHL’s public stance that
it is willing to discuss donating the air park to the city.
“Whether or not this eventually happens depends upon the
outcome of our negotiations with UPS, the community’s desire
to actually take over the air park, and other factors,” he said.
However, any future decisions won’t be Mullen’s to make.
In late February, DHL announced Mullen had resigned, citing health problems, a demanding travel schedule, and the
“pressure of his role.”
—M.S.
ing its service area to include Puerto Rico, the Dominican
Republic, St. Thomas, and St. Croix. … Diamond Phoenix
has opened a new office in Sydney, Australia. The new
office gives the company, which designs, manufactures,
integrates, and installs material handling systems, a permanent base from which to serve customers throughout
Australia and New Zealand. ... Datamax and O’Neil, both
manufacturers of label printing equipment and part of
Dover Corp.’s Product Identification Group, are now operating as a unified company known as Datamax-O’Neil.
