DPD is expanding in Šiauliai FEZ: construction will cost 4 million EUR

30 September, 2021

DPD Lithuania, part of the DPD group, one of Europe’s largest parcel delivery networks, is expanding its parcel distribution capacity in Lithuania. The new DPD parcel distribution centres will be built in the Šiauliai Free Economic Zone (FEZ) and in Telšiai, near the police station. The construction of these centres alone is expected to cost more than EUR 4 million and will be operational in autumn 2022.

DPD Lithuania has agreed with the Norwegian real estate development company Baltic Sea Properties AS (BSP) for the construction of the built-to-suit centres, from which it has subsequently committed to lease them on a long-term basis. BSP was represented in the agreement by Ellex Valiūnas law firm and Šiauliai FEZ by Cobalt.

“Observing the current e-commerce trends and constantly growing parcel flows, we have no doubt that the demand for parcel delivery will only increase in the future. This is also reflected in the statistics – last year we delivered 13 million parcels, 28% more than in 2019, and similar growth is expected this year. That’s why we are expanding our infrastructure and increasing parcel distribution capacity across the country. The new parcel sorting centres will meet the ever-growing demand for our parcel deliveries, ensure even smoother internal processes, and contribute to increasing employee benefits,” says Arūnas Strazdas, Chief Operating Officer of DPD Lithuania.

The total size of the new DPD Lithuania terminals will reach almost 4 thousand square metres, including 2.31 thousand square metres in Šiauliai FEZ and 1.46 thousand square metres in Telšiai. The delivery centres will have 40 and 30 areas for loading courier vans and 16 and 8 areas for loading trucks respectively.

DPD Lithuania currently has 15 parcel distribution centres in the country.

Baltic Sea Properties AS, a Norwegian real estate company operating in the field of real estate development and long-term lease, works with a number of well-known logistics and forwarding companies in Lithuania. According to Sigitas Jautakis, Head of Baltic Sea Properties AS for Lithuania, logistics and warehousing facilities are in demand and this market segment has good development prospects.

“We have been working in the Lithuanian logistics real estate development and leasing market for many years, we have accumulated a considerable amount of operational experience, the necessary technical and legal knowledge, therefore, even with the specifics of DPD terminals due to the large number of minibuses, we have been able to easily apply our professional team’s experience in the development of a new facility,” says S. Jautakis.

Giedrius Valuckas, Chairman of the Board of the Šiauliai Free Economic Zone, sees DPD’s entry into the zone as a strategic shift in the zone’s ambition to become not only an important industrial but also a logistics hub for the region.

“DPD will be built in the Šiauliai Free Economic Zone in cooperation between three parties: the investor, the developer and us. It is very encouraging to see such projects coming to the regions. We see the Šiauliai LEZ not only as an industrial hub, but also as a logistics centre, integrating Šiauliai Airport, and expanding rail and road connections. Therefore, the arrival of DPD will create more synergies and provide a basis for expanding the identity of the rapidly growing economic zone. The investment and job creation are critical to the region’s growth,” says Valuckas.

DPD has leased a 2.8 hectare plot of land in the Šiauliai LEZ for the construction and expansion of parcel distribution infrastructure. Currently, 20% of the investment area in the economic zone is occupied.

By 2022, the relocation of the terminals to the new premises will almost double the total area of the company’s terminals, and the total number of areas for loading vans and trucks will increase more than 4.5 times. “DPD Lithuania” is also looking for additional workforce, with plans to create new jobs in Šiauliai and Telšiai.

About DPD Lithuania:
DPD Lietuva is part of the international parcel delivery group DPDgroup. DPDgroup is the leader in parcel delivery and courier business in Lithuania. “DPD Lithuania’s services include parcel delivery to business and private customers across Europe and a constantly expanding network of post offices. “DPD Lithuania” network currently employs over 700 couriers. “DPDgroup is owned by GeoPost, which is managed by Le Groupe La Poste.

About Baltic Sea Properties:
“Baltic Sea Properties AS is a Norwegian owned real estate development and long-term leasing services company operating in the commercial real estate sector in Lithuania. “Baltic Sea Properties operates in the real estate and commercial property sector and manages 101.3 thousand square metres of real estate space. The shares of the Norwegian company are listed on Euronext Growth Oslo.

About Šiauliai FEZ:
Šiauliai Free Economic Zone UAB is managed by Investment Partner, a company owned by Progressive Business Solutions and Eika. Of the 130 hectares of land, 21 hectares have been leased to the Šiauliai LEZ, which is home to companies such as Bär Cargolift, Vilmers, Plus Windows, RD Signs and Medicinos linija.