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Posti invests in the Baltics parcel business: construction of a new logistics center begins in Estonia

4/28/2024

The logistics center under construction in Estonia is a major investment in Posti's Baltic parcel business. When the new unit in Raes municipality is completed, it will become one of Posti's largest sorting centers in the Baltics.

Construction work on the 3-hectare site begins in early May 2024. The logistics center will be approximately 7,500 square meters and is expected to be ready for use in early 2025. The facility will allow for the center's future expansion to 2,400 m2.

This is a significant investment in Posti's parcel delivery business in Estonia, with investments amounting to around 14 million euros.

Customer service, ensuring fast and reliable delivery

"According to our estimates, the growth in online shopping habits in Estonia remains strong, and parcel lockers are the most preferred delivery method. As our parcel handling capacity will almost triple with the new center, we will ensure that we maintain our position as the leader in quality even during the busiest shopping days," told Gediminas Mickus, who is responsible for SmartPosti operations in the Baltics.

SmartPosti serves online customers in Estonia using parcel lockers and parcel points. SmartPosti was recently selected as one of the most recommended services in Estonia. The number of parcels delivered to SmartPosti parcel lockers is constantly growing, as the number of parcels ordered by Estonian residents at parcel lockers has increased by 17% in the last 12 months (according to data from the Estonian Ecommerce Association).

Sustainable parcel sorting with a focus on employee experience

The construction of the new center will increase the level of automation of SmartPosti's parcel processes, as well as significantly increase the parcel sorting capacity. The center is based on the smart home concept. This means that the building's sensor system allows for remote control and continuous monitoring, for example, of energy efficiency.

The center also has a significant electric vehicle charging capacity. "The new center will have the capacity to charge up to 82 electric cars, and we will implement it in stages until 2030. This will help us achieve Posti's ambitious zero-carbon emissions goals. We have planned the center with the aim of improving the employee experience and maintaining high occupational safety standards," said Erich Jeerik, Head of Operations at SmartPosti Estonia.

The construction is being carried out by the Estonian construction company NOBE.

NOBE Construction Director and Board Member Priit Nigols stated that NOBE engineers have always been inspired by innovative and forward-looking projects.

"We are delighted and grateful that SmartPosti has chosen us as their partner for the new logistics center. Our experience in the construction of similar facilities allows us to offer flexibility and efficiency throughout the construction process, as well as a guarantee of timely project execution," confirmed Nigols.