KUEHNE + Nagel in Germany has held a groundbreaking ceremony for the company's extension of its "logport" facility in Duisburg.
A company communique said it has been operating a state-of-the-art facility with 25,000 square metres of warehouse space on the Duisburg "logport"premises since 2003.
The second phase of construction will double the existing warehouse space on an adjacent 44,000 square metres. The extension of the property has been prompted by growing demand for the company's value-added services at this European logistics hub.
"The expansion underlines the importance of Duisburg as a logistics location for Kuehne + Nagel, and is a confirmation of our dynamic performance in the region," said Hans-Georg Brinkmann, managing director of the German Kuehne + Nagel organisation.
"Our customers benefit from the bundling and processing of goods flows at this central hub. By utilising the Europe-wide intermodal transport network at Duisburg, costs can be reduced and the environmental impact kept low."
Completion of the second phase of construction is scheduled for June 2008. The total investment amounts to EUR22 million (US$31.82 million).
Overall, the company manages facilities with a total warehouse area of 100,000 square metres in Duisburg and provides leading trade and industry companies with tailored contract logistics services, a company statement said.