May 29, 2015 10:49 AM, EDT

DHL Investing $108 Million to Expand Northern Kentucky Airport Hub

Luke Sharrett/Bloomberg News

DHL said May 29 it is investing $108 million in its Cincinnati/Northern Kentucky airport hub to meet growth demand in international e-commerce and global trade growth.

The expansion will provide more gates to accommodate additional aircraft, warehouse space and new equipment to provide more capacity for sorting shipments and unloading and reloading planes, DHL said.

“This multimillion-dollar investment underscores the DHL commitment to the U.S. market and the integral role that our hub here plays in connecting the Cincinnati-Northern Kentucky region to our vast global network,” said Stephen Fenwick, CEO of DHL Express Americas.

“The expansion and service enhancements from this investment will provide additional infrastructure and efficiency [and] support the continued growth in international shipments that we’re seeing as well as add to the economic well-being of this region,” he said in a statement.

The hub, one of three DHL global hubs, connects the United States to the DHL global network spanning Asia, Europe and the Americas. It processes about 46 million international shipments annually and connects nearly 100 service centers — including gateways in Los Angeles, New York and Miami — to more than 220 countries and territories worldwide.

The company’s other global hubs are in Hong Kong and Leipzig, Germany.

DHL has applied to the Kentucky Economic Development Finance Authority for several tax incentives as part of the project. The company said it received approval from the development authority for a sales-and-use tax credit on construction costs, building fixtures and electronic processing equipment as well as equipment used in research and development.

“DHL Express continues to be a valuable resource in the commonwealth, not only for our strong logistics network but also for the northern Kentucky community,” Kentucky Gov. Steve Beshear said in a statement.