dnata’s new $70M automated Amsterdam cargo facility runs into trouble

The facility, known as dnata Cargo City Amsterdam, was designed to handle over 850,000 tonnes of cargo annually and featured a highly automated system with reduced reliance on manual labour by 30 percent.

dnata’s new $70M automated Amsterdam cargo facility runs into trouble
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Global ground handling services provider dnata’s new $70-million, fully automated, 61,000 m² cargo facility at Amsterdam Schiphol Airport is facing serious operational challenges, disrupting cargo flows and prompting customers to queue up at rival handlers Swissport, Menzies, and WFS.

The facility, known as dnata Cargo City Amsterdam, was designed to handle over 850,000 tonnes of cargo annually and featured a highly automated system with reduced reliance on manual labour by 30 percent. However, the transition from the old facility has not gone as planned.

In response to queries, dnata acknowledged to The STAT Trade Times that it is “currently managing some challenges during the transition,” which have led to service disruptions.

“We are working closely with our partners to address the matter as a priority and are taking all necessary steps to bring the facility to full operational capacity as quickly and efficiently as possible,” a dnata spokesperson said.

Originally announced in January 2022, the Emirates Group subsidiary had showcased the facility’s capabilities at IATA WCS earlier this year, with plans to launch in July 2025.

Sources told STAT Times that the facility encountered major technical setbacks during the July 2025 transition. The automated storage and retrieval system (AS/RS) reportedly broke down due to communication failures between its internal subsystems, resulting in misplaced shipments, tracking outages, and widespread delays.

Truck turnaround times spiked to “unacceptably long” levels, while ULD containers clogged the site as overflow capacity was breached. In response, dnata had to keep its previous cargo terminal—Station 6—operational to serve key airline clients.

That move didn’t sit well with airport operator Royal Schiphol, which had intended to demolish the ageing warehouse structures from the 1980s to make space for new taxiways.

dnata Cargo City Amsterdam was developed by Schiphol Commercial Real Estate and equipped by Lödige Industries with cutting-edge cargo handling technologies. It is Schiphol Real Estate’s largest-ever commercial property development at the airport. The facility was originally scheduled to be opened in 2024.

According to the April 2025 dnata release, the terminal features a suite of advanced systems, including AS/RS, automated guided vehicles (AGVs) for flexible ULD transport, and a smart forklift guidance system to optimise cargo movement.

The release also reads, “dnata Cargo City Amsterdam will offer full AWB (air waybill) control across the entire facility, allowing complete oversight of shipment progress and documentation. Operations will be centrally managed via dnata’s Cargo Control Centre, with live process visibility for real-time coordination.”

“Smart gates will automatically record the volume and weight of all incoming consignments using 3D scanning, significantly improving handling speed and service quality. A forklift guidance system will support optimised movement and placement of cargo within the warehouse. Additionally, the facility will perform 100% weight and dimension checks, ensuring accuracy and compliance for every shipment.”

Sources on the ground describe a situation where cargo visibility has been impacted, with reports of freight being temporarily untraceable within the facility. Some airlines are said to have imposed embargoes on belly cargo bound for Amsterdam, while forwarders have been seen queuing at airline offices to retrieve delayed shipments.

The problems appear to stem from the complex integration of multiple new systems and processes.

According to Nallian, the Belgian IT company behind the Truck Visit Management (TVM) solution at the new facility, the project is a “significant transformation” that brings together new infrastructure, software systems, and ways of working.

“Such large-scale transitions can bring unforeseen challenges during initial ramp-up,” the company told STAT Times.

Nallian’s TVM solution, which manages landside operations and integrates with systems from Hermes, Lödige, and Schiphol’s broader Cargo Community System, including E-Link and Smartloxs, is a key part of the facility’s digital backbone.

The company confirmed that all teams are working closely together to support the transition and ensure continuity in operations.

“Also, the company added, “Nallian is providing on-site and remote support.”

While no timeline has been provided for full stabilisation, dnata says it is “keeping all relevant parties informed and doing everything we can to minimise any disruption.”

Meanwhile, Eduard Molkenboer is taking charge as the new head of cargo of Amsterdam Airport Schiphol today (July 05, 2025).

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