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Royal Mail has started work on a super-sized parcel hub – with the capacity to one day process more than a million items a day.
The 840,000 sq ft Midlands parcel hub will be its biggest yet, covering an area the size of more than 10 football pitches and reflecting the growing volumes of parcels passing through the network.
When it opens in 2023 it will have its own rail terminal and play a part in the estimated £1.4 billion the business contributes to the region each year.
The new building is going up on the Daventry International Rail Freight Interchange, in Northamptonshire, picked because of its central UK location and proximity to many big cities, as well as warehousing and fulfilment centres which use Royal Mail services, and transport links such as the M1.
Under the plans Royal Mail has just signed a contract with Beumer for the installation of modern parcel sorting tech.
Construction is already underway on another big parcel hub in the North West of England.
The overall investment is part of Royal Mail’s transformation into what it calls an international “parcels-led business” which also delivers letters in the UK.
The business said it had seen parcel volumes grow strongly in recent months year, driven by more people shopping online, which had been further accelerated by temporary shop closures and lockdowns.
It said domestic account volumes had grown 51 per cent, while Royal Mail tracked 24/28 and tracked returns saw 72 per cent growth year on year.
On its busiest day it processed more than 2.5 million Royal Mail Tracked parcels. That comes despite the growth of rivals such as DHL, DPD, Hermes and UPS.
The Daventry complex – which includes a vehicle operating centre and fleet workshop – is being built by industrial property company Prologis UK.
Royal Mail’s other parcel hub in Warrington will come into operation in 2022 and between them the sites will be capable of processing more than 1.5 million parcels a day with options to grow that to more than 2.5 million.
Royal Mail chief executive Simon Thompson 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.”
Daventry Tory MP Chris Heaton-Harris said: “It’s great news that Royal Mail has decided to make such a substantial investment in a parcels hub in my Daventry constituency.
“This will give a welcome boost to the local economy. With the boom in online shopping, my constituency is exceptionally well positioned via both road and rail networks to ensure these items are delivered as quickly as possible after purchasing.
“I look forward to visiting the new automated site when fully operational.”
Phil Oakley, vice president of leasing & development at Prologis UK, said: “Royal Mail’s decision to locate its largest UK parcel hub at DIRFT is great news for the local economy and the ecommerce companies located on Prologis DIRFT who rely on the company’s delivery services.
“Proximity to the new Royal Mail unit means companies can confidently extend order picking times and still achieve next day delivery for their customers.”
Stephan Heessels, divisional director of Beumer Group Logistic Systems, said: “Royal Mail’s new Midlands hub will be another excellent example of how a parcel distributor can ensure ergonomics-based design of its high-speed sortation systems.
“The system seamlessly combines system design, operator safety and careful parcel handling.
“The hub will enable Royal Mail to process parcels more efficiently across their network in turn helping ecommerce companies quickly get their parcels to online customers.
“The new automation not only means processing more parcels faster, but the modern design of the system also supports workflows to be performed in a safer more secure way – than ever before.
“We are proud to have been selected once again to support Royal Mail with positioning themselves at the leading edge of operating efficiency and ergonomics.”
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