Aldar in deal to build Kuehne+Nagel facility at Dubai South

PHOTO

Dubai South, the largest single urban master development focusing on aviation, logistics and real estate, has joined hands with Abu Dhabi-based Aldar Properties to develop a build-to-suit facility for Kuehne+Nagel, one of the world's leading logistics providers, at EZDubai, the fully dedicated e-commerce hub in Dubai South.

Spanning 22,915 sq m, the facility provides third-party logistics (3PL), e-commerce, and goods handling services, and is designed to include office space, warehousing capabilities, and an amenities block. The facility is expected to be handed over to Kuehne+Nagel by Q2 2025.

Located in close proximity and with direct access to Al Maktoum International Airport, as well as Jebel Ali port via a bounded logistics corridor, the logistics facility is being developed as part of the joint venture between Dubai South and Aldar to develop Grade A logistics facilities at Dubai South’s Logistics District.

The facility was designed to attain a LEED (Leadership in Energy and Environmental Design) Silver certification by incorporating efficient design and energy-saving elements.

The building’s flooring will feature an innovative system utilising high-performance steel fibers, including those sourced from repurposed end-of-life tire wire and cord, ensuring both strength and reduced carbon footprint, it stated.

The agreement was signed at Dubai South headquarters in the presence of Mohsen Ahmad, CEO of Logistics District, Dubai South, Jonathan Emery, CEO, Aldar Development, Lee I’Ons, GCC+ Managing Director at Kuehne+Nagel, as well as other senior executives from the three entities.

On the new venture, Ahmad said: "We are pleased to sign this agreement with Kuehne+Nagel, who will benefit from our state-of-the-art infrastructure and customised advanced services to expand their presence and cater to the demand on logistics services regionally."

"Our partnership with Aldar is a strategic one, and we are committed to attracting the top players to contribute to the key priorities of the Dubai Economic Agenda ‘D33’- in establishing Dubai as one of the top five logistics hubs in the world," he added.

Aldar Development CEO Jonathan Emery pointed out that the logistics sector represented a hugely promising opportunity for Aldar, and it was delighted with the accelerated progress being made in collaboration with Dubai South.

"Together, we are building scalable logistics facilities that respond to the burgeoning demand for high-grade facilities in the UAE from global firms such as Kuehne+Nagel. We continue to activate the initial AED1 billion ($272.2 million) investment we committed to the sector and look forward to making further announcements this year," he added.

Lee I’Ons, the Managing Director for GCC+ at Kuehne+Nagel, said: "Our longstanding relationship with Dubai South and Aldar was pivotal in choosing the right partners to facilitate our expansion."

"Thanks to the strategic location of EZ Dubai, a carefully designed e-commerce zone by Dubai South, Aldar’s strong development capabilities, and Kuehne+Nagel's global expertise in handling e-commerce, the new fulfillment centre will further strengthen our successful cooperation," he stated.

Headquartered in Switzerland, Kuehne+Nagel is listed in the Swiss blue-chip stock market index, the SMI. The Group is the global number one in air and sea logistics and has strong market positions in road and contract logistics.

With over 81,000 employees at almost 1,300 sites in close to 100 countries, the Kuehne+Nagel Group is one of the world's leading logistics providers.