New rail freight terminal 1

Royal Mail has started construction of a new parcel hub in the Midlands as it capitalises on its profitable parcels business.

Expected to open in 2023, the hub in Daventry will be the largest Royal Mail centre in the UK, having the capacity to process over one million mail items a day and measuring the size of 10 football pitches.

Royal Mail has seen parcel volumes grow strongly, driven by online shopping during the pandemic; conversely, last year it saw “a staggering reduction” in the number of letters it delivered, as volumes plummeted during the first half of its trading period by 28%.

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Built by Prologis, the hub is situated at the Daventry International Rail Freight Interchange and it will utilise its rail connectivity with its own dedicated rail platform, enabling parcels and other freight direct access to the West Coast Main Line.

Simon Thompson, Royal Mail chief executive, 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.”