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WILMINGTON | DHL Worldwide Express shouldn't have any doubt about whether Clinton County wants the German express mail service to continue using ABX Air to route cargo through the Wilmington Air Park.

 

A letter sent Monday to DHL Americas Chief Executive Officer John Fellows said, "The Clinton County Commissioners look forward to a long and prosperous relationship with DHL."

 

The commissioners said they "support wholly" state efforts to keep the mail delivery giant in the region, and expressed their "deep desire for DHL to expand."

 

More than 7,000 people work at the site, which used to be part of the package delivery service Airborne Express. DHL acquired Airborne last year, along with the air park property. ABX was spun off into an independent company as part of the merger.

 

ABX provided the aircraft, crew and maintenance services for Airborne's package delivery service in Wilmington and operated a package sorting hub and overland delivery service at the site. As part of the merger, DHL agreed to use the newly independent ABX for those same services.

 

The commissioners' letter is the most recent in a string of requests by federal, state and local officials that DHL continue to use the Wilmington complex.

 

DHL operates a smaller hub at the Cincinnati/Northern Kentucky International Airport in Kentucky. No decision has been made as to whether DHL will continue to operate both facilities.

 

"We're still on the same time line," said DHL spokesman Jonathan Baker. "We're not yet ready to make an announcement."

 

Baker said DHL expects to make an announcement regarding the fate of the sites within the next two months.

 

DHL's hub services contract and aircraft, crew, maintenance and insurance agreement with ABX states that DHL can begin changing its air routes and hub structure on Aug. 15. Baker said that date will not affect the company's time line for a decision on the future of the northern Kentucky and Wilmington hubs.

 

Contact Shannon Joyce Neal at 225-2436.

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While jobs in the Cincinnati region are always a plus, I would rather the jobs stay in Ohio than move to Kentucky.

Yeah, it's good for Wilmington and good for the state.

Looks like Wilmington won out. DHL is staying in Ohio. Glad to hear something when in favor of Ohio. While I like CVG, keeping jobs in Ohio is #1. I guess CVG is in jeopody of losing 1500 jobs to Wilmington but I am confident that CVG can rebound better than Wilmington could.

Yeah, CVG will do fine as Boone County is booming with light industrial and residential.

 

Wilmington and Clinton Co., on the other hand, would be devastated by the loss not only locally but also in the surrounding counties.

DHL was an American company, but it was bought by the German post office. I was wondering about this when I saw those ads with those yellow DHL trucks. Yellow (and black) is the color of the "Deutsche Bundespost"...it dates from the old "imperial colors" of the Holy Roman Empire.

 

Turns out the Germans privatized their postal service, and spun off the telecommunications buisness to the private sector too (known to us as "T Mobile"). After the privatization the postal service started buying up expresse and airfreight operations, like DHL.

  • 4 months later...

From the 10/30/04 Enquirer:

 

 

DHL hub officially welcomed

Wilmington ceremony done as construction goes on

By James Pilcher

Enquirer staff writer

 

WILMINGTON - The concrete had already been poured and rolls of steel lay in haphazard piles.

 

In fact, the area for the ceremonial groundbreaking of the DHL hub expansion here Friday was just a small circle of dirt cut out of the middle of concrete expanse.

 

The $300 million project was announced in June after Ohio officials aggressively courted the Brussels-based shipping giant to centralize its operations here in Clinton County, about 50 miles northeast of Cincinnati.

 

Full story at:

 

http://www.enquirer.com/editions/2004/10/30/biz_abxair30.html

I'm glad DHL didn't leave the region. This is good news for Clinton county

I am happy they chose Ohio over Kentucky even though CVG is more in the Cincy region than Wilmington. Bottom line is our state is hurting and we needed this more. CVG will rebound, it is an attractive location for business operations.

  • 6 months later...

UPDATE:

 

This $300 million project is expected to be completed in fall 2005.

 

No other news, other than the fact that there will be a Shanghai-Wilmington flight (via Anchorage).

  • 1 month later...

A related story from the 6/24/05 Dayton Daily News:

 

 

DHL cargo deal close to completion

By the Dayton Daily News

 

DAYTON | The legal battle over which area port authority — the Dayton/Montgomery County Port Authority or the Clinton County Port Authority — has the authority to finance the $300 million DHL Worldwide Express air cargo hub expansion in Wilmington soon could be settled.

 

That's DHL's vote, at least.

 

The company earlier this month asked the Clinton County port authority to consider some "recommendations" that could bring the matter to a close, said DHL spokesman Richard Gibbs.

 

More at:

 

http://www.daytondailynews.com/business/content/business/daily/0624dhl.html

 

From the 6/25/05 Enquirer:

 

 

DHL bids Kentucky farewell

Shipping giant gives official word hub going to Wilmington

By James Pilcher

Enquirer staff writer

 

ERLANGER - DHL has made it official that it is moving north, notifying the state of Kentucky that it will eliminate 600 jobs on Aug. 22 when it plans to close its hub and sort operation at the Cincinnati/Northern Kentucky International Airport.

 

The Brussels-based shipping giant issued a legal notice to the state late Thursday, marking the start of the official countdown to the move of all major U.S. operations to its new expanded hub in Wilmington, about 50 miles northeast of Cincinnati.

 

A federal law requires employers of more than 100 to give 60 days' notice of a major job reduction of 50 or more positions.

 

The company announced last June that it was moving to Ohio and that the target date was the end of September.

 

More at:

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050625/BIZ01/506250333/1076/rss01

 

  • 2 months later...

From the 9/9/05 Enquirer:

 

 

DHL packs bags, leaves for Wilmington airport

Cargo carrier leaves just 300 workers in Hebron

By James Pilcher

Enquirer staff writer

 

Air cargo carrier DHL this morning is expected to complete its last full schedule of service to the Cincinnati/Northern Kentucky International Airport and enter the final phase of consolidating all its operations in Wilmington, Ohio.

 

"We've got 180 truckloads of equipment we're going to take up there beginning at 5:30 a.m. after our last flights out, and we've got to get that all set up to handle the Friday night flights," said Steve White, DHL senior vice president for hubs and gateways. "So we're going to be busy, but so far, the transition has gone smoothly."

 

The shift marks the end of a 22-year stay by DHL at the local airport and the end of a saga that began in August 2003 when the German-owned and Belgian-based shipping giant bought U.S. carrier Airborne Express for $1.05 billion.

 

Full story at:

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050909/BIZ01/509090388/1076/rss01

 

  • 3 weeks later...

From the 9/25/05 Dayton Daily News:

 

 

Port dispute makes DHL 'loser'

By Jaclyn Giovis

Dayton Daily News

 

DAYTON | It's not often a multi-billion global enterprise calls itself a loser.

 

But that is exactly how DHL Worldwide Express, an international leader in express logistics companies, referred to itself.

 

Well, sort of.

 

The company is investing $300 million to expand its presence at Clinton County's Wilmington Airpark and is creating 900 jobs to support that growth.

 

Full story at:

 

http://www.daytondailynews.com/business/content/business/daily/0925dhl.html

Geez, no wonder businesses don't want to locate in Ohio.

If we had strong leadership in Columbus, then most of these unnecessary problems would disappear.  Clinton County's dubious charges could be reduced, the dispute between the port authorities could be eliminated, and the road money could be found for this important project.  All we need is for someone to take charge and to get this done.

 

 

That's what DHL gets.  They would have moved to Wilmington anyway without breaks from the state.

  • 6 months later...

From the 4/22/06 Dayton Daily News:

 

 

Agency approves $300M bond issue for DHL

Port authority OKs move to finance expansion of hub operation in Wilmington.

By Timothy R. Gaffney

Staff Writer

 

DAYTON — The Dayton-Montgomery County Port Authority on Friday approved the issuance of $300 million in tax-exempt airport revenue bonds for the DHL air freight hub expansion in Wilmington, capping a nearly two-year financing ordeal.

 

"This is a good day. I can't tell you how happy I am," Port Authority President and Executive Director Ronald J. Parker said.

 

The approval allows the port authority to reimburse DHL Worldwide Express for about $200 million it has spent on construction at the former Airborne Express hub.

 

More at:

 

http://www.daytondailynews.com/business/content/business/daily/0422port.html

 

Well I am a little surprised to see Dayton's Port Authority envolved with this.

yeah i'm surprised too.

  • 6 months later...

From the 10/20/06 Wilmington News Journal:

 

 

City, Union Twp. forge 'historic' agreement

Township to receive property tax dollars from DHL Air Park following annexation

By GARY HUFFENBERGER

 

A proposed annexation into the city of Wilmington of 1,130 acres at the DHL Air Park is not your run of the mill annexation. Recognizing that, city hall has agreed that Union Township will receive in perpetuity the property tax revenue that the site generates.

 

Of course, annexing the land will mean people who are employed at the air park will become subject to the city income tax, providing the city its own source of tax revenue in the deal.

 

Full story at:

 

http://www.wnewsj.com/main.asp?Search=1&ArticleID=150571&SectionID=49&SubSectionID=&S=1

 

From the 11/3/06 Wilmington News Journal:

 

 

City ready to annex 1,130 acres

By GARY HUFFENBERGER

 

On Thursday night Wilmington City Council authorized the city to enter into an annexation agreement on a proposed annexation of 1,130 acres at the DHL Air Park. Council's vote of approval means the final two signatures needed on the final page of the agreement document will now be added. The approval also means the parties probably are drawing near actual annexation.

 

The legislation that passed Thursday not only authorized the signing of paperwork, it also authorized annexation of the real estate, contingent upon the Clinton County commissioners approving the landowner's petition for annexation.

 

More at:

 

http://www.wnewsj.com/main.asp?Search=1&ArticleID=150928&SectionID=49&SubSectionID=&S=1

 

  • 3 weeks later...

YAY Wilmington!

 

I'm part of this group called Leadership Clinton Youth Colaborative (I know there is also a Leadership Warren and a Leadership Highland... I dont know of any others though) we are the junior members, the adult members picked 20 kids from the county that they felt were interested in the betterment of the community/county (which I am), and when I was sitting in on one of the adult meetings they said that they hope to make Wilmington the logistics capital of the United States. We have DHL and R&L and pretty sweet road access. The only other thing that could help us would be an extension of the Ohio River... I dont see that happening anytime soon...

 

I think it could happen (The logistic capital thing)

From the 11/12/06 DDN:

 

 

DHL-ILN hub expansion wins honors

Sunday, November 12, 2006

 

WILMINGTON — DHL and Messer Construction Co. were recently awarded the Design-Build Excellence Award for showing the most successful analysis of design-build strategies for the DHL-ILN hub expansion in Wilmington.

 

The Ohio Valley Chapter of the Design-Build Institute of America presents the award annually.

 

More at:

 

http://www.daytondailynews.com/n/content/oh/story/news/business/2006/11/11/ddn111206dhlhonors.html

 

  • 5 months later...

From the 2/12/07 Wilmington News Journal:

 

 

Global eyes DHL hubs

The union agenda goes global, says UNI

NEWS JOURNAL STAFF REPORT

 

Union Network International (UNI) wants to help grow labor unions at DHL's three principal air hubs. The three hubs are in Leipzig (Germany), Hong Kong and Wilmington.

 

The UNI is an international trade union founded in January 2000, created in response to changes going on in the global economy. There are about 15 million members in UNI's approximately 900 unions.

 

Full story at:

 

http://www.wnewsj.com/main.asp?FromHome=1&TypeID=1&ArticleID=152997&SectionID=49&SubSectionID=156

 

From the 3/2/07 DDN:

 

 

Port authority closes deal on DHL bonds

The $270 million issue will finance the expansion of the air freight hub in Wilmington.

By Lisa Bernard

Staff Writer

Friday, March 02, 2007

 

WILMINGTON — The Dayton-Montgomery County Port Authority has officially closed a deal to sell $270 million in tax-exempt airport revenue bonds — capping off a more than two-year financing ordeal for the expansion of the DHL Worldwide Express air freight hub in Wilmington.

 

Over the last year, the port has been holding off on selling the bonds at the request of DHL, said Ron Parker, executive director of the port authority.

 

More at:

 

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/03/01/ddn030207dhl.html

 

From the 4/4/07 Wilmington News Journal:

 

 

DHL tax break formally accepted

CRA exemption one of incentives offered to DHL

GARY HUFFENBERGER

Staff Writer

 

When the Clinton County commissioners Monday accepted DHL's application for a Community Reinvestment Area (CRA) tax exemption, the action fulfilled part of the incentive package that state and local officials put together in 2004 so DHL would pick Wilmington for its primary U.S. air and ground hub instead of Hebron, Ky.

 

The incentive package called for a 100 percent tax abatement on real property investments of $120 million. According to a February 2007 filing by legal counsel for DHL, the actual cost of the company's real property investments came to a little less, $115.9 million.

 

More at:

 

http://www.wnewsj.com/main.asp?SectionID=49&SubSectionID=156&ArticleID=154139

 

  • 1 month later...

From the 6/29/07 Wilmington News Journal:

 

 

ASTAR seeks to buy ABX

GARY HUFFENBERGER

Staff Writer

 

ASTAR Air Cargo has proposed to buy ABX Air.

 

Like ABX Air, the primary customer of ASTAR Air Cargo is DHL, and also like ABX, the air hub for ASTAR already is at the DHL Air Park in Wilmington.

 

On Thursday afternoon, ABX said its board of directors, consistent with the board's "fiduciary duties and commitment to enhancing value for shareholders, will evaluate this indication of interest as well as any formal offer actually made."

 

Full story at:

 

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/06/28/ddn062907dhl.html

 

  • 2 weeks later...

From the 7/11/07 Wilmington News Journal:

 

 

Wilmington City Schools OKs agreement with DHL

ROB PEIRCE

Staff writer

 

The Wilmington City Schools Board of Education approved a tax abatement agreement with DHL at its regular meeting on June 29.

 

The board will be financially harmless in the agreement, Superintendent Philip E. Warner said. The approval was part of an agreement with the state when DHL relocated to Wilmington, Warner said.

 

More at:

 

http://www.wnewsj.com/main.asp?FromHome=1&TypeID=1&ArticleID=156689&SectionID=49&SubSectionID=156

 

so any more news on ASTAR's proposal to ABX?

 

(not asking you grassy to go and look, if anyone has "heard" anything)

ABX set to respond to $450 million buyout offer

 

By John Nolan

Staff Writer

Tuesday, July 17, 2007

 

ABX Air Inc., the cargo airline that operates DHL's Wilmington air freight hub, said Tuesday it will respond by next week to an offer by ASTAR Air Cargo Holdings LLC to buy ABX for at least $450 million.

 

ASTAR, based in Miami, made its purchase offer of $7.75 in cash per share in late June. Based on the 58.7 million shares of ABX Air stock outstanding on May 9, the proposal would be worth $454.8 million.

 

More at:

 

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/07/17/ddn071707abxastarweb.html

Heres the article about the "Meaningful Response"

 

ASTAR sets Wednesday deadline

ABX didn’t respond by July 2, as ASTAR asked

 

GARY HUFFENBERGER

Staff Writer

 

ASTAR Air Cargo on Monday set a Wednesday deadline for ABX Air to deliver "a meaningful response" to ASTAR's proposal to acquire ABX.

 

ASTAR publicly disclosed in late June it seeks negotiations to buy ABX. At the time, ASTAR referred to "our desire to move quickly" and asked ABX to respond by July 2.

 

ABX did not respond by July 2 nor since.

 

More at:

 

 

http://wnewsj.com/main.asp?SectionID=49&SubSectionID=156&ArticleID=156871

From the 7/18/07 DDN:

 

 

Company won't increase its offer to buy ABX

By John Nolan

Staff Writer

Wednesday, July 18, 2007

 

ASTAR Air Cargo Holdings LLC said Wednesday that it still wants to buy competitor ABX Air Inc., but will not increase its offer of $7.75 per share for ABX, the cargo airline.

 

ASTAR also extended until the close of business on July 27 its deadline for receiving a response from ABX Air's board of directors to the purchase offer, which could total more than $450 million. ABX said on Tuesday that its board is reviewing the offer and expects to respond next week.

 

Full story at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/07/18/ddn071807abxastarweb.html

 

  • 10 months later...

DHL deal with UPS could leave ABX Air out

 

By John Nolan

Staff Writer

Wednesday, May 28, 2008

 

The Germany-based owner of DHL said Wednesday, May 28, that it will hire United Parcel Service to handle its air cargo deliveries in the United States, which could eventually end or substantially reduce ABX Air and ASTAR Air Cargo delivery flights from DHL's Wilmington hub.

 

Deutsche Post World Net, owner of DHL, said the $1 billion-per-year, 10-year contract it expects to conclude within months with UPS would cover airport-to-airport cargo deliveries only. DHL said it will still compete with UPS as an air delivery company in the United States.

 

More at:

http://www.daytondailynews.com/b/content/oh/story/business/2008/05/28/ddn052808dhlweb.html[/size]

The absurdity of American protectionism over our airlines catches up with another city.

That will hurt Wilmington big time!

That's what they get for leaving NKY. ;-)

Thanks KJP

 

My sister works in Governor Strickland's office and says that this is all the buzz up there. Rightly so... if this follows through without any recourse, it will devastate Wilmington and Clinton County...

 

After DHL promised sooo much to Wilmington, and Wilmington invested so much in them... agreed to build a new highway (bypass 73), just annexed the airpark in January, I'm sure they were getting plenty of tax cuts... It feels like a slap in the face.

A big chunk of Amazon.com's photo department relocated in Hebron, KY to take advantage of DHL's hub there since shipping from Europe is a day closer to Cincinnati than to Seattle.  Amazon.com is starting some kind of fashion website which will be branded separately and they were going to do all of their catalog photography of European products there.  Then DHL moved to Wilmington, and now if they pull out entirely I'd bet Amazon would move their photo operation.  That's a good example of how these kinds of things have ripple effects on a region.   

Doesn't this seem strange?  DHL basically sold their US hub to Airborne and now DHL worldwide is no longer going to use them.  I must be missing something with the relationship between DHL and Airborne when the DHL hub moved.  Airborne already had a big operation before this was added so I am surprised at such an extreme impact to the overall operation.

Unfortunately, DHL couldn't completely own ABX due to silly American laws about airline ownership. So that meant ABX wasn't really all that different than any other contractor. UPS must have come in with a fantastic offer to grab all that material.

 

I'm not sure this effects Amazon that much since UPS has the massive operation in Louisville (though I guess they could just move to Louisville). This capacity stays in the Ohio Valley but will move further to the southwest, not that this helps Wilmington at all.

Gotcha and thanks for the clarification.

 

Unfortunately, DHL couldn't completely own ABX due to silly American laws about airline ownership. So that meant ABX wasn't really all that different than any other contractor. UPS must have come in with a fantastic offer to grab all that material.

 

I'm not sure this effects Amazon that much since UPS has the massive operation in Louisville (though I guess they could just move to Louisville). This capacity stays in the Ohio Valley but will move further to the southwest, not that this helps Wilmington at all.

  • 2 weeks later...
  • 3 weeks later...

DHL to take back 23 aircraft from ABX Air

Business Courier of Cincinnati

 

"ABX Air Inc. will lose 23 DC-9 aircraft as its primary customer, DHL Network Operations, reduces its business with the cargo airline.

 

According to a Thursday filing with the Securities and Exchange Commission, DHL notified ABX on June 20 that it would reduce the services ABX is providing by 23 aircraft by the end of 2008. That will affect 16 of ABX's scheduled air routes, the airline said.

 

More at:

http://www.bizjournals.com/cincinnati/stories/2008/06/23/daily45.html?f=et57&ana=e_du

 

It appears that the cuts backs are about to start? Has anyone heard anything else. This is a lot of jobs.

For a city the size of Wilmington, could this be as dramatic on the town as the automotive plant closures in Flint.  Really not the news that Ohio needs right now. 

I don't know how many in Wilmington work at this facility (I am sure a lot). I do know that many travel from Warren County and around the metro for these jobs. Maybe someone else will step in to utilize the facility in the future. (This could be a challenge with Oil prices like they are though.)

Good news for Louisville, as UPS has their main airfrieght hub there. 

 

 

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