DHL commits to $83 million pharmaceutical distribution facility

DHL Supply Chain and ESR Australia have entered into agreements to develop an $83 million pharmaceutical distribution facility in Western Sydney.

The 38,000 sqm distribution warehouse will be built on seven hectares at ESR Bringelly Road Business Hub, where DHL Supply Chain will be leasing the facility for 10 years.

Due for completion in late 2021, the development is a temperature-controlled warehouse intended for the storage and distribution of pharmaceutical products, including medical supplies and machines.

“We are excited to be investing alongside ESR Australia in a new life sciences and healthcare grade warehouse facility for our medical device customers,” said Saul Resnick, CEO, DHL Supply Chain Australia.

“This central, purpose-built facility will consolidate select existing and new customers under one roof. Improved, direct connections to major capital cities will save time on deliveries to hospitals, medical centres and wholesalers,” Resnick said.

Last year, DHL also launched four new healthcare-grade storage facilities all around Australia across the Sydney, Melbourne, Brisbane and Perth metropolitan areas.

In a statement, ESR Australia CEO Phil Pearce commented on the joint partnership development, which will see the completion of the project by October 2021.

“This project is further validation of our ability to devise bespoke solutions for our customers,” Pearce said.

“We’re  seeing increasing demand for temperature-controlled facilities to cater for perishable and sensitive products,” he said.

In particular, Pearce elaborated that enquiries from pharma and food-related industries are on the rise and is a  trend they expect to continue, along with the demand generated by the ecommerce boom.

Powered by a substantial 450kw solar system, the carbon neutral warehouse is targeting a 5 Star Green Star rating and demonstrates both ESR Australia and DHL Supply Chain’s commitment to sustainable development. ESR Bringelly Road Business Hub also promotes sustainability through green design initiatives including rainwater harvesting and smart building management systems.

The property will be owned in the long term by ESR Australia Logistics Partnership (EALP), an 80/20 joint venture between GIC and ESR Australia, taking EALP’s gross assets to $1.2 billion upon completion.

“Our patientcentric delivery model is important to our customers’ customers. Greater efficiencies will be found through automation, combined transport and warehousing solutions and dedicated product repair services,” said Michael Gardner, Vice President of Life Sciences and Healthcare, DHL Supply Chain.

Gardner said repair centres built within the pharmaceutical distribution facility provide a seamless experience for our customers which in turn will directly benefit patient outcomes.

Source: ESR Australia