Royal Mail confirms Prologis parcel hub

Royal Mail has confirmed that it is building a second parcel hub Prologis’ DIRFT III scheme in the East Midlands.

Once built, the planned 840,000 sq ft Midlands parcel hub will become Royal Mail’s largest parcel hub.

The building will have the capacity to process over 1m parcels per day. It is scheduled to be fully operational in 2023.

Building is designed to reduce impact on the environment – including energy efficient heating, ventilation and LED lighting installations on motion and daylight sensors.

Royal Mail has also signed a contract with Beumer Group for the construction of a fully-automated parcel sorting system (APSS) to be housed within the Midlands Hub.

The Midlands hub initiative follows the construction of a parcel hub in the North West of England.

Royal Mail has seen parcel volumes grow strongly in the first half of the year, driven by online shopping which has been further accelerated by the coronavirus pandemic and its associated restrictions. Domestic account volumes grew 51% while Royal Mail Tracked 24/28 and tracked returns saw 72% growth year on year. On its busiest day it processed more than 2.5 million Royal Mail Tracked parcels. 

As well as featuring a state-of-the-art automated parcel sorting system, the hub will offer a Vehicle Operating Centre, a Fleet Workshop facility, brand-new staff facilities as well as a rail terminal, enabling an increase in the amount of mail transported efficiently and sustainably. 

With Royal Mail’s other parcel hub in Warrington coming into operation in 2022 both sites will create a parcel powerhouse capable of processing well over 1.5 million parcels per day with options to scale to over 2.5 million in the future. 

Simon Thompson, Royal Mail CEO, said: “Our business is accelerating and this state-of-the-art parcel hub in the Midlands will allow us to seize the market opportunity and continue to deliver great service for our customers at 31 million doorsteps up and down the country. I am sure our team are looking forward to the first day of operation as much as I am.”