DC Developments: July 5, 2023

by Inside Logistics Online Staff

Cardinal Health Canada

Cardinal Health Canada plans to open a new distribution centre in the Greater Toronto Area (GTA), expanding its distribution footprint to nine locations in Canada. The 163,000 square-foot facility will integrate goods-to-person robotics. The new DC is expected to be fully operational in late 2023 to early 2024. This will boost Cardinal Health Canada’s distribution footprint in Ontario to 541,000 square feet and raise its national footprint to 1,120,000 square feet. This is the third new distribution centre for Cardinal Health’s Medical Segment to be announced within North America since April 2023.


Arvato has commissioned a solar power plant on the roof of its distribution centre in Ontario, California. The plant has 1,160 solar panels and generates more than 800,000 kilowatt hours (kWh) of green electricity per year. The solar modules were installed in August 2022, and after regulatory approvals, the switch was flipped in February 2023 to begin electrical production. The photovoltaic system is operated under a Purchase Power Agreement (PPA). This is a financing mechanism available in twenty-six U.S. states, including California. While a third-party developer installs, owns and operates the solar panels, Arvato purchases the electricity generated. This allows companies in the U.S. to purchase clean, low-cost electricity without having to finance upfront costs. Emissions generated by the distribution centre are reduced by 72 percent with the new solar panels and clean power generation.

Hong Kong Air Cargo Industry Services Limited

Hong Kong Air Cargo Industry Services Limited (Hacis) has opened a new climate-controlled facility – Cool Zone – at the Hong Kong airport. The new zone, located in Hacis’s E-commerce Fulfilment Centre, offers a handling area with temperatures down to 15°C. Hacis is also able to provide storage for chilled, fresh and frozen commodities ranging from +25°C to -25°C. The Cool Zone is directly linked to Hactl’s SuperTerminal 1 automated Box Storage System (BSS), enabling it to handle loose cargo. Once cargo is transferred to the Cool Zone, staff perform processes such as pick and pack and labelling, before the cargo is loaded onto temperature-controlled customer vehicles waiting at the facility’s truck docks. Alternatively, individual orders can be delivered direct from the Cool Zone to the end-customer by courier.