City Link has opened its first dedicated postal sortation centre in Coventry which is capable of handling up to 500,000 letters and packets a day.
It will operate 24 hours a day and, at peak periods such as Christmas, seven days a week.
The company has already opened four depots this year, with two of them acting as regional hubs in Peterborough and Warrington. It has also invested some £7 million in IT systems.
Managing director, Stuart Godman, said: “We have an affiliation to Coventry with our national hub in Baginton and another depot in Rowleys Green and this further cements our commitment to the city.”