DPD is to open three new depots in London, Southampton and Dundee to handle the expected increase in parcel volumes this Christmas.

The expansion - an investment of £4.3m by DPD - is expected to create 150 new jobs across its new depots at Southwark in London, Hedge End in Southampton and the West Pitkerro industrial site  in Dundee. The new £2.3m Hedge End depot is set to replace its existing site at Chandlers Ford and will become fully operational by the end of October.

Chief executive Dwain McDonald said: “"In recent years we have seen an unprecedented increase in our parcel volumes due mainly to Predict, our unique one-hour time slot service. The new depots will improve our capacity and are further evidence of DPD's ongoing investment in our infrastructure.”

The new £1.5m London depot, opening on Mandela Way, Southwark, will relieve pressure from the parcel firm’s two existing depots at London Bridge and Kings Cross and create up to new 70 jobs.

Chosen because of its improved motorway links, the Southampton depot opens will cover routes in Southampton, Portsmouth and the surrounding area, creating 30 new jobs.

The new Dundee depot will handle DPD’s Scottish customer base by servicing 50 new routes alongside its existing sites in Edinburgh, Aberdeen and two in Glasgow. It will create 50 new jobs and will be fully operational later this month.

McDonald said: ”Deliveries on behalf of the e-commerce industry now represent half of our business and we expect this growth in e-retailing to continue to go from strength to strength. Successful delivery is a crucial part of the home shopping experience and this announcement underlines our commitment to improve our service to customers right across the UK."

Last month, parent company Geopost announced it was looking to fill 900 temporary roles across DPD and sister company Interlink, to handle increased parcel volumes this Christmas.