Posti to set up sorting centre in Estonia

National postal and logistic services operator Posti will set up sorting center in Tallinn, Estonia at a cost of EUR 14 million, said Posti in a press release on Monday.

The logistics center to be built for Itella, is a major investment in Posti’s parcel business in the Baltics.

When completed, the new unit in Rae Parish, close to Tallinn, will be one of Posti's largest sorting centers in the Baltics.

Construction work on the 3-hectare site starts in the beginning of May.

The logistics center will be about 7500 m2 in size, and it is expected to be ready for use in the beginning of 2025. The site allows for additional expansion of the center up to 2400 m2 in the future.

"According to our estimates, online shopping growth in Estonia continues strong, as does the popularity of parcel lockers as the most preferred delivery method. As our parcel handling capacity almost triples with the new center, we ensure maintaining our quality leader position even during the busiest shopping holidays,," said Gediminas Mickus, responsible for Itella’s operations in the Baltics.

Itella is serving eCommerce customers in Estonia with Smartpost parcel lockers.