UK Mail is planning to move to a new hub in Coventry following agreement with the Department for Transport over relocation from its existing Birmingham site which sits on the path of the planned High Speed 2 rail line.
The cost of replacing the existing facility and associated relocation costs will be funded by HS2 Ltd. UK Mail still needs planning permission for the new 200,000 sq ft site. It plans to start construction early next year and move in over a period starting in Spring 2015.
The plans include increased used of automation at the new site which will be paid for by UK Mail.
It said: “UK Mail will fund the costs of deemed upgrades to our existing facility, expected to be some £10m; this is in addition to the previously announced investment of approximately £20m in the new automated sortation equipment.”
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.”