DHL opens New Zealand’s newest healthcare logistics hub

DHL Supply Chain’s (DHL) newest Life Sciences and Healthcare (LSHC) facility in Auckland arrives at a time when demand for compliant, resilient health logistics continues to climb. Rising volumes of biologics, stricter cold-chain requirements, and lessons from recent supply disruptions have sharpened expectations across the sector.

The new Te Kapua Drive facility responds directly to those pressures, adding significant capacity while introducing technology and design features that signal where the industry is heading.

The 14,100 m², $90 million development (including $10 million invested in automation) expands DHL’s national health logistics footprint by 20 per cent. It also positions New Zealand more firmly within DHL’s expanding Asia–Pacific LSHC network, which includes recent facilities in Singapore, Malaysia, India, and South Korea. Together, these sites form a connected platform for moving regulated, temperature-controlled products at pace.

“Te Kapua futureproofs our ability to distribute critical and life-saving healthcare products throughout New Zealand,” says Javier Bilbao, CEO of DHL Supply Chain Asia Pacific.

What stands out on the warehouse floor is the scale of automation. Forty-one Geek+ robots — the largest deployment of their kind operated by a New Zealand 3PL provider — support a Goods-to-Person system designed to lift accuracy, speed, and safety. The robots handle the highly repetitive tasks that traditionally dominate health logistics, allowing staff to focus on higher-value work.

The system was integrated by Automate-X, a New Zealand-based automation specialist. The decision to partner locally was intentional, says Matt Casbolt, Managing Director of DHL Supply Chain New Zealand.

“Automate-X understand the environment, they’re in our time zone, and can provide rapid support. Their experience with other complex automation projects in New Zealand proved invaluable.”

Mr Casbolt is direct about the role of robotics: not a replacement for people, but a shift in the type of work undertaken. “The technology takes away the drudge work. Our people can focus on higher-value tasks. It’s safer and more efficient,” he says.

Around 80 staff operate the site, including what DHL identifies as the country’s largest health logistics quality assurance team. Increasingly, these roles require skills in mechatronics, data analysis, and robotics oversight, a shift consistent with wider sector trends.

Demand for healthcare logistics in New Zealand is estimated to be growing by around 7–8 per cent each year, driven by population change and increased use of specialist medications. The facility has been built with this trajectory in mind, offering 12,000 pallet positions of temperature-controlled Very Narrow Aisle storage.

Temperature zones range from 2°C–8°C through to –30°C for sensitive biologics, supported by humidity control and a dedicated 2°C–8°C antechamber for safe packing and preparation. Dangerous goods areas (classes 2, 3, 6, and 8) and secure vaults for controlled substances round out the site’s regulatory capabilities.

Mr Casbolt says that this capacity reflects broader changes in the pharmaceutical landscape. “Biologics, vaccines, and other temperature-sensitive products are the fastest-growing part of the market. We’re expanding cold-chain and dangerous-goods capacity to support that,” he says.

Additional services, including relabelling, over-labelling, and secondary repackaging under Medsafe licence, allow customers to configure product closer to the point of use, a practical benefit for companies operating across multiple markets.

A notable shift enabled by Te Kapua is the ability to support direct-to-patient and direct-to-pharmacy distribution. These models are gaining traction internationally as healthcare providers seek greater traceability and shorter lead times.

By integrating with DHL Global Forwarding, the site links inbound shipments with nationwide outbound flows, providing visibility from manufacturer to final recipient. Mr Casbolt says the value of these models became clear during COVID-19.

“COVID showed how fragile supply chains can be. This site is about building resilience and ensuring continuity when global disruptions occur.”

Sustainability is built into the design. The five Green Star-rated building runs on renewable electricity and incorporates LED lighting with smart controls, rainwater reuse, cool roofing, and energy-efficient HVAC systems. DHL’s Cool Green Cell reusable packaging also reduces transport waste in temperature-controlled movements.

These features align with DHL Group’s wider €500 million regional healthcare logistics strategy, which includes decarbonisation and network resilience investments across Asia–Pacific.

The robotic zone currently supports up to 28,000 totes with multiple storage positions, with room for expansion as demand increases. Mr Casbolt expects automation to feature more prominently across DHL’s wider network.

“We’ll see a lot more automation and digitalisation across the network. The technology has now reached a level where it’s commercially viable, scalable, and able to deliver real operational resilience,” he says.

The facility also consolidates DHL’s existing healthcare operations in New Zealand, creating a centralised hub with scope for future growth.

The implications for the sector are clear. New Zealand’s health system depends on safe, efficient distribution of pharmaceuticals and medical devices. The Te Kapua site strengthens cold-chain capability, increases storage capacity, and provides a more resilient operational base.

For clinicians, manufacturers, and patients, the investment offers improved reliability and greater preparedness for future demand cycles or disruptions.

“This facility helps make the healthcare supply chain more resilient, responsive, and ready for the future, for patients, for healthcare providers, and for New Zealand as a whole.”