UK Mail plans to relocate its national hub from Birmingham to Coventry after reaching an agreement with the DfT over its High Speed Rail 2 (HS2) plans.

In the company’s half year results last month, which showed a 63% increase in pre-tax profit, UK Mail said its current hub is located on the government’s planned HS2 route.

The DfT will support the firm’s move to a 200,000 ft² site in Coventry. Construction is due to begin early next year, subject to planning approval.

Relocation costs will be funded by HS2, and UK Mail hopes it will move into the site in spring 2015.

The parcel carrier plans to invest £10m in upgrading the facilities at its current site, as well as introduce a £20m automated sortation system, which it had formerly hoped to install in early 2015.

CEO Guy Buswell said: "This move will represent an important component of our plans to develop UK Mail into one of the leading and most advanced parcel carriers in the UK, with a new state-of-the-art, highly automated hub at the heart of our network."

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