News

Pallet-Track, the youngest of the pallet networks, has unveiled the site of its new Midlands hub, which will become operational on 6 October. The firm only moved into its current site in 2004, but volume growth over the past four years has meant that it is already operating above its capacity, says the network's managing director, Nigel Parkes.

The new site in Wolverhampton is a 270,000ft² purpose-built distribution facility, which  is more than twice the size of the 65-member network's existing hub. Parkes says that although the new hub is considerably larger, a move was essential: "Since we started operating in 2004 we have added 1,000 pallets each year. If we were to experience similar growth over the next four years, that would take us to 8,000 per night."

Although there are still 12 months left on its current lease, which means it will be paying double rent for a year, Parkes feels that there is only minimal risk involved: "In my opinion, we've held out as long as we could here. If we stayed longer it would be a disaster and cause problems for the network. The timing is right - we are safe as we can be."

He points out that the break-even point for the new hub is "hundreds not thousands" of pallets above its present level. Parkes says that although it had looked at facilities elsewhere within the West Midlands, including the site of Palletline's new hub, it wanted to remain in the Wolverhampton  area to retain staff. The new hub is on a five-year lease with the option of a five-year extension.

It has invested in £700,000-worth of additional work on the building, including the addition of two-lane inbound and outbound scanning gantries.