VOL. 132 | NO. 193 | Thursday, September 28, 2017
DHL Planning New Memphis Distribution Facility
By Patrick Lantrip
International shipping giant DHL Supply Chain is planning a massive new development just north of the Tennessee-Mississippi state line.
The global logistics division of Germany’s Deutsche Post DHL Group is looking to build a 580,000-square-foot distribution facility on 55 acres of vacant land east of Tchulahoma Road and west of Meltech Boulevard on the northern border of the state line.
The land currently belongs to Belz Enterprises under the name Southridge Industrial GP.
Belz sold much of their property in the area to MDH Partners in 2015 in an $82 million deal, but elected to keep the 55-acre parcel along with a 73-acre tract immediately to the north.
The Shelby County Assessor’s most recent appraisal of the 55-acre site values it at $1.6 million, while the larger parcel to the north is valued at $1.9 million.
Plans for the proposed DHL site call also for 405,000 square feet of paved areas that will include 150 car parking stalls and 66 trailer parking stalls.
Since the site contains 1.7 acres of federally regulated wetlands that feed into Tenmile Creek, DHL will have to make an in-lieu payment to the Tennessee Wildlife Federation for the 1.3 acres that will be filled. Future expansion plans may affect an additional 0.4 acres of wetlands, according to an application filed with state environmental officials.
Arco National Construction and GMA Architects are listed as the contractor and architect on the project, according to blueprints obtained by The Daily News.
DHL considered two other properties for the distribution center project: 5121 Malone Road and 2121 E. Raines Road.
While the Malone Road location was deemed an ideal location for a warehouse, the shipping company determined that at 38.8 and 8.1 acres, respectively, both properties were too small for the type of development being planned.
DHL Express, a separate unit of the global shipping company, operates a Memphis service center that nearly tripled in size when it moved into a 30,000-square-foot facility near Memphis International Airport in early 2016. The company invested $2.5 million in the expanded center, located at 3560 Air Center Cove, citing existing and expected growth through e-commerce and Mid-South companies' international trading activities.
A DHL Express executive, speaking to The Daily News at the time of the move, said the new center would serve as the local hub for pickup, delivery and sorting operations for international shipments, and would be able to handle 2,500 shipments per hour.