Deutsche Bahn’s logistics division, DB Schenker Logistics, is establishing a €33m ($44.5m) logistics centre in Leipzig, Germany, to supply automotive components for ocean and rail shipment to BMW plants in China and South Africa. The centre is expected to be in operation by the middle of 2011, with a handover phase running between July and November.
DB Schenker Logistics is working with integrated property developer Goodman Group for the development of the 63,000m2 warehouse, which will be located near BMW’s Leipzig production plant and is described by DB Schenker Logistics as “one of the largest logistics projects [it has] ever acquired.”
Purpose-built for automotive logistics, it will collect around 8,000 different component lines for package and containerisation according to delivery requirements, with around 50 containers shipped out daily for ocean transport. These will move via the port of Antwerp for ocean transport to Rosslyn in South Africa and via Bremerhaven port for movement to Shenyang in China.
In addition, a percentage of the containers prepared at DB’s new Leipzig facility destined for Shenyang will be shipped there by rail across Russia. BMW is organising rail shipment directly but a DB Schenker spokesman outlined that this route would save transport time compared with ocean routes. By rail the containers will travel about 11,000km compared to 20,000km by ship. “Rail is the more ecological way of transport compared to ocean,” he added.
BMW is building a second production plant at Tiexi in the region which is due to go into operation at the beginning of 2012 and, subject to verification with local authorities, will start with production of the BMW X1, currently only built at Leipzig.
Painted bodies and all inhouse parts for the Chinese assembly of the X1 will be supplied from the Leipzig plant. BMW is also moving parts for its new engine plant in Shenyang through the new warehouse.
The €560mTiexi plant is being developed with its Chinese joint venture partner Brilliance and will join the partnership’s existing plant in Shenyang which produces the 3 and 5 Series.
BMW’s Rosslyn plant in South Africa, builds the 3 Series sedan.
The Leipzig warehouse will be fitted with 8,600m2 of covered sideloading areas and 18,000m2 of outside storage space. It will feature 35 loading docks with development space for a further 15.
“We have already been active at our Leipzig location for many years as a provider of logistics services for land transport in Europe, international air and ocean freight, as well as contract logistics for trade and industry,” explained Dr Hanjörg Rodi, chairman of the management board of Schenker Deutschland. “We also have other business locations in the state of Saxony, in Chemnitz and Dresden.
“The new logistics centre will double our headcount in the Free State of Saxony to more than 1,200,” he added.
Goodman is also currently working with Seifert Logistics Group on the development of an automotive logistics centre near Karlsruhe in Germany that will store vehicle parts for supply to the Mercedes-Benz production plant in Rastatt. The €31m facility is due for completion in May this year.