DHL Express has announced the expansion and relocation of its service centre in Agra. The new 3,900 square foot facility introduces significant automation and improved cargo processing capacity aimed at reducing time-to-air and optimising delivery performance. The development is expected to support Agra’s critical export ecosystem, particularly its micro, small and medium enterprises (MSMEs), as global competition in time-sensitive freight intensifies.
Located within proximity to key arterial routes connecting Agra with Delhi and the wider National Capital Region, the upgraded facility incorporates a motorised conveyor system tailored for reweighing conveyable goods (COY), as well as segregated infrastructure for non-conveyable items (NCY). The layout is designed to reduce bottlenecks in peak demand periods, while offering sustained efficiency over a projected capacity growth horizon through 2033.
Connecting Agra’s MSME exporters
Agra remains a linchpin of India’s MSME-driven export growth story, producing leather goods, marble inlay work, footwear, handicrafts and textiles, among others. The MSME sector accounted for nearly 49% of India’s total exports in 2023–24, and in cities like Agra, these enterprises depend heavily on reliable international express networks to maintain time-bound fulfilment obligations—especially across fast-cycle retail and e-commerce sectors in the US, EU, and Gulf markets.
According to the Ministry of Commerce, India’s merchandise exports reached $437 billion in FY 2023–24, with MSMEs contributing approximately $214 billion. Agra’s contribution, while modest in absolute value, holds strategic weight in high-margin categories such as handcrafted footwear and decorative arts. DHL’s continued investment into this segment is aligned with both national and local policy priorities aimed at scaling up MSME exports via improved logistics and trade facilitation.
“Agra has always been integral to India’s export story,” said R.S. Subramanian, Senior Vice President for South Asia, DHL Express. “Our enhanced facility reflects our decade-long commitment to this vital market. Linehaul departures from Agra now leave 30 minutes earlier, helping us maintain DHL’s 98.1% transit time service commitment, while optimising operational costs and delivering long-term value for our customers.”
Aligning facility expansion
The service centre’s automation features, including powered conveyor systems and reweigh technology, are expected to reduce cargo handling time by up to 20%, translating to a measurable decrease in overall shipment cycle time. This, in turn, improves synchronisation with air cargo schedules at DHL’s Delhi Gateway, the main transit point for international cargo originating from northern India. With Delhi International Airport handling over 1.3 million tonnes of cargo in 2024, network alignment is essential to ensure that Tier 2 cities like Agra can access global markets with consistency and efficiency.
Peter Bardens, Senior Vice President – Network Operations, Asia Pacific, DHL Express, added: “The Agra service centre delivers immediate efficiency improvements and is scalable to handle sustained year-over-year volume growth through 2033. It’s a future-ready node in a critical geography.”
The upgraded site also includes expanded parking and staging areas for pickup and delivery (PUD) vehicles, a key determinant in ensuring first-mile and last-mile service reliability in congested urban environments. This structural redesign is intended to boost route density, minimise dwell time, and provide temperature-sensitive and high-value exporters with consistent cargo handling performance.
National trade facilitation policies
DHL’s facility expansion is consistent with the Government of India’s “Strategy for Doubling Exports by 2030” and complements initiatives under the National Logistics Policy (NLP) and PM Gati Shakti programme, both of which advocate the use of modernised logistics infrastructure to boost India’s export competitiveness.
A notable policy synergy is DHL’s partnership with the Directorate General of Foreign Trade (DGFT), under which the company will initiate outreach programmes, training, and capacity-building workshops for MSMEs in Agra in 2025. This cross-border e-commerce export promotion scheme is aimed at upskilling enterprises to navigate complex compliance and documentation requirements under international trade frameworks, particularly those governing air cargo.
“Modernising logistics at the Tier 2 city level is essential if India is to unlock the full potential of its MSME export base,” said a senior DGFT official speaking on background. “Facilities like DHL’s help reduce indirect logistics costs—estimated at nearly 13% of GDP—by improving last-mile efficiency and expanding access to international freight corridors.”
Strategy implication
While the Agra facility itself is relatively modest in scale compared to DHL’s other strategic investments—such as its €2 billion allocation for global life sciences and pharma hubs—it plays an outsized role in decongesting centralised nodes and extending express air cargo capabilities to decentralised manufacturing zones.
In December 2024, DHL Express also expanded its service centres in Ludhiana and Chandigarh, collectively adding more than 20,000 square feet of logistics capacity. The Ludhiana facility alone now handles more than 3,500 shipments daily—up 18% year-on-year—underscoring the scale of the demand in industrial northern India.
Moreover, the Agra upgrade is embedded within DHL’s broader “Strategy 2030: Accelerating Sustainable Growth” framework. While specific environmental metrics were not disclosed for this site, DHL has committed to operating all new service centres with energy-efficient systems, solar integration where feasible, and adherence to green building norms aligned with the Science-Based Targets initiative (SBTi). These infrastructure shifts are critical as express logistics comes under increasing scrutiny for its Scope 3 emissions, particularly in air freight and last-mile delivery.
A logistics bridge
DHL Express’s Agra expansion is emblematic of a broader recalibration in global express logistics—one that recognises the growing importance of sub-national export ecosystems, policy-aligned infrastructure, and air cargo network synchronisation.
As Indian MSMEs face heightened expectations around cost, speed, and compliance in international trade, facilities like Agra’s upgraded service centre are no longer optional—they are foundational. For air cargo policy professionals, the development offers insights into how multinational integrators are localising their global networks to align with trade facilitation goals, sustainability mandates, and next-generation supply chain resilience.
