INTERNATIONAL LOGISTICS PROVIDER DPD IN RUSSIA RENTED A WAREHOUSE IN SEVERNOE DOMODEDOVO INDUSTRIAL LOGISTIC COMPLEX (ILC)

Moscow, Russia - DPD in Russia, an international transport and logistics company, entered into a five-year lease contract for a cross-docking Class A warehousing complex of an area of 14,200 sq.m in the  Warehouse Complex Severnoe Domodedovo.

Knight Frank Company acted as consultant on the deal. DPD has been working in Russia since 1991, delivering parcels and cargoes throughout Russia, Kazakhstan, Belarus, Ukraine, and also to 220 countries around the world. DPD is a part of DPDgroup, the second largest international parcel delivery network in Europe. DPDgroup is a parcel delivery network of GeoPost holding company, which had a turnover of 4.9 billion Euro in 2014.

The cross-docking warehouse leased by DPD belongs to a specialized category of warehousing and is intended for fast processing and the further shipment of cargoes. The tenant plans to install an automatic indoor sorting line, which will increase the efficiency of the service. This is already the second HUB of the company in Moscow. The first one is located in the North of the capital, in Mitino.

Gleb Belavin, Deputy Director General of Tenant Relations at MLP MC, noted: “In my opinion, this deal is logical in the context of a crisis, in which the tenant has a plenty of options to choose from. A high-quality and professional logistics operator chose a quality warehouse facility with a professional management company.”

“Now, our solutions for B2B and B2C companies contribute to the dynamic growth of dispatch volumes in the network despite the overall economic recession. The use of a Class “A” warehousing complex will optimise our operational processes and provide additional advantages for business development for our clients” - Andrey Mayorov, the Director General of DPD in Russia.

Vyacheslav Kholopov, Partner, Director for Offices and Warehouses at Knight Frank, added: “The share of cross-docking warehouses in the market of high-quality warehouse space is extremely small, but availability of such space is critical for a company engaged in express delivery. DPD was looking for a suitable warehouse for more than a year and the Warehouse Complex Severnoe Domodedovo is unique for the company in terms of location, configuration and reliability of the owner (the biggest owner of warehouses in Russia). Meanwhile, the owner added to its list of tenants a large international company with sustainable business, i.e. DPD. This deal confirms the trend to increase the load of professional logistics operators in the time when the end users (tenants) are not always able to predict their turnover several years ahead, and therefore, seek logistics outsourcing for the next year or two. (This sentence is complicated and I’m not sure of its meaning. Perhaps its because I’ve never worked in logistics. Therefore, I left it as it is.

About DPD in Russia

DPD in Russia, one of the leaders of the Russian express delivery market, has more than 140 branches, and a network of parcel collection points and subdivisions in CIS countries. DPD delivers parcels and cargoes throughout Russia, Kazakhstan, Belarus, Ukraine, and also around the world.

In 2014, the turnover of DPD in Russia grew by 43% in the B2C segment compared to 2013, and the number of shipments - by 49%. Last year about 14 million parcels were delivered throughout Russia. The total weight of all cargoes carried was 270 thousand tons.

DPD in Russia is a part of GeoPost international holding and operates within the framework of an alliance of GeoPost and Yurtiçi Kargo companies.