Dubai Logistics City first phase expanded following overwhelming leased land demand

An additional 1.4 million square metres of land for lease has been built into the phase one master plan taking the total available to some 3.6 million square metres nett.

"Demand for plots of land to lease has exceeded initial expectations," said His Highness Sheikh Ahmed bin Saeed al Maktoum, President, Department of Civil Aviation, Government of Dubai and Chairman of the Emirates Group. "Having to amend our initial plan is an extremely gratifying position to be in and underlines the quick take up of the DLC business proposition."

To date over one million square metres of leased land in phase one has been reserved by future tenants who will be able to begin construction on their individual premises in Q2 2006.

"Reservations have come from a balanced mix of international and regional companies," said Michael Proffitt, CEO, DLC. "They come largely from freight forwarders and third party logistics suppliers offering warehousing and distribution services. The profile of this customer base was expected as the outsourcing of logistics requirements is a growing trend throughout this region."

Meanwhile, DLC has disclosed that 50% of the ground grading work for the project's first phase is now complete and is due for completion next February.

"Construction work on DLC's dedicated runway will begin in October to ensure it is fully operational by the end of 2007," explained Proffitt. The runway will enable DLC to operate as a freighter airport capable of handling the new generation Airbus A380-800F airliner.
Construction of DLC's facilities, including a cargo terminal, agents building, amenities and the DLC headquarters and office park, will take place simultaneously with the construction of the runway and the new Jebel Ali International Airport facilities.

DLC is the first phase of the new Jebel Ali Airport City and, together with Jebel Ali Port and Free Zone and the new Jebel Ali International Airport, make up the world's first truly multi-modal facility for air, sea and road services.

DLC, which will span over 25 square kilometres, will cater to the logistics requirements of the greater Middle East and is designed to eventually handle more than 12 million tons of air cargo annually in up to 16 air cargo terminals. It is to be the preferred location for businesses which require, or offer, logistics and multi-modal transport services to the GCC, the wider Middle East, India, Africa and the CIS - a market of more than two billion consumers. A recent industry report valued the GCC logistics market alone at over US $11 billion.