DHL to open 1-million-square-foot South Annville warehouse as life sciences hub

DHL’s massive new 1-million-square-foot distribution center in South Annville Township will be dedicated to life sciences and healthcare, the company announced Wednesday, bringing a unique specialized logistics space to the region.

The facility, the first of three warehouses in an overall 3 million square feet of space approved for DHL’s Clear Spring Logistics Park, is slated to open in 2026 as the “East Coast Center of Excellence,” according to a press release.

Through subsidiary Exel Inc., DHL acquired the 198-acre site from MFS in August 2022 for approximately $20.1 million. The company previously estimated that it would spend $283 million on construction of the overall facility. The opening of the first building had been held up by a Met-Ed substation, which opened last year.

At South Annville Township’s November 2025 meeting, supervisors were told that DHL will start internal construction in January or February, with potential completion in August or September.

DHL said that the purpose-built facility will operate as a designated Foreign Trade Zone, offering pharmaceutical and medical technology companies tariff mitigation and expedited customs processing.

The multinational logistics firm touted the warehouse’s strategic position minutes from interstates 76 and 81 and the ability to provide connectivity for time-sensitive healthcare shipments. However, the location is not without its own transportation challenges.

A roundabout connected to the project had been planned for Clear Spring Road and state Route 934 in North Annville Township but fell through in 2024 after North Annville supervisors voted to limit truck traffic on Clear Spring Road based on a traffic study that showed trucks at 53 feet cannot travel Clear Spring Road safely. (Clear Spring Road is currently closed just north of U.S. Route 422 due to structural issues with the bridge over the Norfolk Southern tracks; repairs are expected to be completed later this year.)

The specialized handling needed for life sciences products can call for smaller vehicles and more specific delivery schedules, which may be a better fit with the site given the lack of a straight shot route to the interstates.

“As pharmaceutical companies navigate tariff changes, rising demand for temperature-controlled infrastructure, and strict regulatory compliance, they need logistics partners with proven expertise,” said Mark Kunar, CEO of DHL Supply Chain North America. “The East Coast Center of Excellence is a critical next step in delivering scalable, end-to-end solutions for the healthcare industry.”

The facility will feature FDA and GMP-compliant infrastructure, advanced temperature-controlled environments for biologics and specialty drugs, and solar power integration with electric vehicle charging stations, according to a press release. The site includes 100 dock doors, 230 trailer parking stalls, and 250 employee parking spaces.

According to a flyer for potential tenants, the facility will feature multiple temperature-controlled spaces, with the capability to support ultra-low temperature storage down to -130 degrees Fahrenheit. Marketing materials also mention the ability for firms to benefit from LERTAs that were approved for the site.

DHL cited industry data showing U.S. pharmaceutical logistics is growing at 8% annually.

The company said that the investment is part of DHL’s Strategy 2030, which identifies life sciences and healthcare as a key growth area. The company recently acquired SDS Rx and CryoPDP, firms specializing in final-mile healthcare delivery and biopharma transport.

A spokesperson said that once operating at full capacity, the facility is expected to employ up to 400 full-time associates.