Package delivery services provider DPD Eesti and Ülenurme Investeeringud OÜ have entered into a long-term rental agreement under which an approximately 1,000 square meter terminal building will be built for DPD at Jõhvi Business Park in Northeastern Estonia for a cost of over €1 million.
The total size of the investment is over €1 million, and the building is to be completed in August 2018, the company said.
"The locations of our current terminal in Jõhvi have changed several times as we have constantly expanded our business, and based on this have required larger premises to operate on," DPD Eesti CEO Rainer Rohtla said in a press release. "Currently, we are located close to residential buildings in the city of Jõhvi, which is not suitable for us as we do not wish to disturb the people living in the area with our activity, which sadly may happen due to the nightly loading of vehicles."
Rohtla explained that DPD Eesti has owned a subunit in the form of the terminal in Jõhvi for decades, but the continually increasing volume of goods and Jõhvi's geographical location as the hub of effective distribution logistics make it reasonable to invest in the construction of a modern and sufficiently backed up terminal.
"The new terminal building meets all of DPD's needs, is effective, and enables us to successfully handle volumes of goods which we will in the future bring to businesses and consumers from door to door or via the Pickup network," he said.
Current drivers and employees in the Ida-Viru County region will begin work in the new building and will be given even more modern working conditions. "There will be no new jobs initially, but larger premises definitely support development and the creation of new jobs," the CEO said.
The construction of the new terminal will begin in the spring and is expected to be completed in August.
DPD decided in favor of Jõhvi Business Park as DPD Eesti headquarters also located at Jüri Technology Park and the company's Tartu office is located at Ülenurme Technology Park.
"For years, we have seen the positive developments of technology parks and that by separating the living and business environment in a well-thought-out manner, we create better conditions for both," Rohtla explained, adding that this made choosing a similar approach in Jõhvi the logical choice.
"I hope that the establishment of the terminal at Jõhvi Business Park will accelerate development there, and that other Estonian companies will also follow our example by bringing more jobs to the city and contributing to the development of the region," the CEO said.
DPD is the second-largest international package distribution service provider in Europe. The company has nearly 200 couriers and more than 180 vehicles in Estonia, and employs 127 people. DPD has 127 package terminals in Estonia, 139 in Latvia and 91 in Lithuania.
Editor: Aili Vahtla