Dubai South and Aldar Properties (Aldar) are set 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, a report said.

Located near 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, Emirates News Agency, WAM, said.

The facility is expected to be handed over to Kuehne+Nagel by Q2 2025.

Spanning 22,915 sqm, 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 was designed to attain a LEED Silver certification by incorporating efficient design and energy-saving elements.

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

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.

Mohsen Ahmad, CEO of Logistics District, Dubai South, 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 for 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.”

Jonathan Emery, Chief Executive Officer at Aldar Development, said: “The logistics sector represents a hugely promising opportunity for Aldar, and we are delighted with the accelerated progress we are making 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 AED 1 billion investment we committed to the sector and look forward to making further announcements this year.”

Lee I’Ons, GCC+ Managing Director at Kuehne+Nagel, said: “Kuehne+Nagel's 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 fulfilment centre will further strengthen our successful cooperation.” – TradeArabia News Service