Royal Mail starts work on new 32,000 sq m parcel hub

Royal Mail

Royal Mail announced that it started designing a fully-automated parcels hub in Warrington after committing to a 15 year lease. The new parcel hub will be 32,000 sq m and process more than 600,000 parcels per day. These parcels will typically comprise items purchased from retailers the evening before, as well as larger parcels more suitable for van delivery.

This parcel hub is one of three it will build in the UK over five years and represents another step in the company’s commitment to the “Northern Powerhouse” economy. The hubs form part of an extension to Royal Mail’s UK delivery network that will see the company introduce a second delivery for next day parcels and larger items. The extension is expected to be fully operational by 2023.

The Warrington parcel hub will be close to urban centres like Liverpool and Manchester, and to the warehousing and fulfilment centres of online retailers. Therefore, Royal Mail claims it is ideally situated to support growth in UK e-retail, growing demand for next day delivery and the delivery of larger items. It will also significantly increase Royal Mail’s capacity to process mail at peak volumes.

Under the proposals, Royal Mail plans to relocate its existing North West Distribution Centre, currently in Mill Lane, to the new site which is 4.4 miles away. This is subject to an ongoing consultation with Royal Mail’s people and unions. The Warrington mail processing centre will continue to operate from its existing site in Orion Boulevard.

Simon Barker, National Operations Director Royal Mail said: “This significant commitment to the North West is just one example of how Royal Mail is changing to drive e-commerce growth across the UK. This new site – the first of three parcel hubs to be announced – alongside initiatives like accepting e-retail parcels into our network late in the evening, will help us to meet growing demand for next day delivery.”

Source: Royal Mail