Global logistics provider Hellmann Worldwide Logistics has officially broken ground on a new, specialized automotive logistics facility within the Jebel Ali Free Zone (Jafza) in Dubai. Developed to support changing supply chain demands across the Middle East, Africa, and the Gulf Cooperation Council (GCC) regions, the project represents a major expansion of the forwarder’s dedicated industrial verticals.
The built-to-suit facility is being developed in partnership with regional industrial real estate developer INDU Logistics (part of the INDU Group) and will serve as the primary automotive spare parts distribution anchor within Hellmann’s Middle East and South Asia network.
Catering to a High-Growth Regional Automotive Market
The capital investment aligns with shifting trade volumes in the Middle East, where the automotive logistics sector is projected to expand at an annual growth rate of 4% to 6% through 2030. By establishing a permanent footprint in Jafza, Hellmann capitalizes on Dubai’s multimodal transport infrastructure, utilizing adjacent ocean terminal connections at Jebel Ali Port and air freight capacity at nearby regional airports to orchestrate rapid transshipment options between European, Asian, and African manufacturing centers.
The logistics hub is engineered to optimize the velocity and predictability of automotive aftermarket supply chains, allowing global original equipment manufacturers (OEMs) to consolidate regional components and buffer inventories in a single centralized, customs-exempt zone.
Architectural Specifications and Inventory Zoning
Spanning approximately 28,000 square meters, the facility’s interior layout is custom-designed to manage the unique structural and handling requirements of automotive components, ranging from micro-electronics to heavy mechanical sub-assemblies.
The facility integrates several specialized storage environments:
- High-Density Bin Storage: Designed for high-frequency, small-scale spare parts picking, maximizing vertical space utilization for items like sensors, fasteners, and brake pads.
- Selective Pallet Racking: Tailored for standard palletized inventory, enabling rapid forklift access and seamless cycle counting.
- Oversized Component Zones: Dedicated floor tracks and heavy-duty staging areas equipped to handle bulky, non-standard freight such as chassis segments, body panels, and crated engines.
Insulating Supply Chains Against Transshipment Uncertainty
The centralized distribution model addresses a critical industry pain point: the need for fast, predictable access to critical spare parts across highly fragmented international markets. By positioning inventory within Jafza, automotive brands can bypass standard border bottlenecks, accelerating delivery timelines to regional dealership networks and repair hubs.
Lee I’Ons, Regional CEO IMEA for Hellmann Worldwide Logistics, noted that the UAE remains a strategically vital market within the company’s global network. He emphasized that establishing this dedicated automotive hub allows Hellmann to systematically expand its regional capabilities, creating scalable, industry-focused infrastructure that delivers high-performance logistics solutions to support its clients’ long-term commercial growth.
Abdulla Al Hashmi, Global Chief Operating Officer of Parks and Economic Zones at DP World, added that Hellmann’s investment reflects the rapid pace of automotive growth in the Middle East. He highlighted that building specialized infrastructure in Dubai provides supply chain partners with the concrete tools needed to manage global logistics uncertainty and keep industrial operations moving without disruption.
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