The Brussels Times: DPD Launches New €52 Million Distribution Center in Vilvoorde, Belgium
French parcel delivery business DPD has launched a new, substantial parcel distribution facility in Vilvoorde, close to Brussels. The company's goal with the new construction is to continue its rapid international expansion while turning a profit with its operations in Belgium.
One of the first two-storey logistics centers in Belgium, the new complex, situated on the Brussels Ring Road, got a total investment of €52 million. To enable subcontractors to pick up packages for delivery within the Brussels region, a depot measuring 4,500 square meters will be used. A fully automated sorting facility is also part of the complex, which can supposedly process up to 20,000 packages per hour during the busiest times.
According to Richard de Haas, DPD's Chief Executive for Belgium and Luxembourg, "e-commerce is reaching new heights." "Through the new hub, we are doubling our capacity for parcel imports." The new facility, which Belgian real estate behemoth Montea has leased to DPD, will play a significant role in the logistical web that connects Europe.
DPD operates out of Oirschot, a location in the Netherlands close to Eindhoven, to serve northern Europe. The company's presence in Belgium, Luxembourg, and the neighboring areas will be expanded by the Vilvoorde site. The business has changed its predominant B2B operating model in the nation to one that focuses more on delivering packages from businesses to customers. Sadly, this strategy is far less profitable than in the past due to the introduction of "free delivery" features.
According to the company's annual report, by closing four depots, the opening of the Vilvoorde hub should enable further cost savings and help reduce "operational deficits."
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