City Link invests in new post centre

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Express parcel firm City Link is continuing to reshape its property and depot portfolio as it returns to profit this year and pushes for growth in 2011.

It has already opened three major new UK sites this year - a national hub in Coventry and regional hubs in Peterborough, Cambs and Warrington, Cheshire - and has followed this up with a new sortation centre for its post operation in Coventry.

The new centre is a 25,000ft² site, formerly City Link's Coventry depot, and will be live by Q3 2010.

City Link MD Stuart Godman says that the firm's post operation will generate around 8% of its turnover this year, he adds: "It's big enough to be important, but we will always be a parcel company that has a post arm, not vice-versa."


The company is also looking to replace its Epsom, Surrey depot with a larger one located along the A3 corridor.

"We have outgrown our Epsom depot and are now looking for bigger and better premises," says Godman.

City Link has also offloaded the site of its former Wednesbury, West Midlands hub, which was left vacant when it migrated that operation to the new site in Coventry in July.

Although Godman was reluctant to discuss the exact amount generated by the sale, CM understands that it was a substantial seven-figure sum.