Parcel and Postal Technology International
  • News
    • A-E
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
    • F-O
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
    • P-R
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
    • S-Z
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    • March 2025
    • September 2023
    • June 2023
    • March 2023
    • December 2022
    • SHOWCASE 2019
    • Archive Issues
    • Subscribe Free!
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn YouTube Twitter
  • Sign-up for Breaking News Emails
  • Meet the Editors
  • Contact Us
  • Media Pack
Subscribe
LinkedIn Facebook
Parcel and Postal Technology International
  • News
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    1. December 2024
    2. September 2024
    3. June 2024
    4. March 2024
    5. SHOWCASE 2019
    6. Subscribe Free!
    Featured
    April 2, 2025

    In this Issue – March 2025

    Online Magazines By Web Team
    Recent

    In this Issue – March 2025

    April 2, 2025

    In this Issue – December 2024

    December 5, 2024

    In this Issue – September 2024

    September 19, 2024
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • 2024 Award Winners
    • 2023 Award Winners
    • 2022 Award Winners
    • 2021 Award Winners
    • 2020 Award Winners
    • 2019 Award Winners
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn Facebook
Subscribe
Parcel and Postal Technology International
Features

Croatian Post’s new multimillion-dollar sorting center facilitates next-day delivery for all

David SmithBy David SmithDecember 7, 20207 Mins Read
Share LinkedIn Twitter Facebook Email

When Croatian Post officially opened what it calls ‘the most advanced sorting center in Southeast Europe’ in September 2019, it was the culmination of seven years of planning. The €45.5m (US$53.6m) center on the outskirts of Croatia’s capital, Zagreb, is the largest investment in the company’s history and an essential development if Croatian Post is to keep pace with its double-digit annual growth rate. New automated sorting machines are able to sort 15,000 mail items weighing between 100g and 30kg per hour. And Croatian Post’s new letter sorting machines, mostly based at the new center, can each sort 230,000 letters an hour. 

“In every way it’s better than our older locations,” says Antonio Vidka, Croatian Post’s executive director of the optimization sector. “We’ve been planning it since 2012 and when it finally opened last summer it was a relief for everybody at Croatian Post. We used to be on the edge of failing to honor our promise of next-day delivery to all destinations. Now we have enough space to increase the number of parcels and deliver them all on time.”  

A bit of background

Croatian Post has been through many changes since it was founded in 1999. Previously, it was part of HPT-Hrvatska pošta i telekomunikacije (HPT Croatian Post and Telecommunications), but it was split into two separate stock companies, one for telecommunications and one for postal services. The company is still state-owned, but it competes in a liberalized market with international rivals such as DHL, UPS and DPD. Croatian Post dominates the letter business with around 85% of the market but has only approximately 25% share of the parcel delivery market. To continue to compete, it needed to be equipped with the latest technology.

The time taken to sort both domestic and international parcels has been greatly reduced

A few years ago, Croatian Post had 14 sorting facilities in its nationwide network. That number dropped over time and now stands at nine. According to Vidka, one reason there were more centers in the past was the poor state of the main roads in the country, but these have gradually improved. Another reason was that the regional Croatian Post centers were a legacy of the historical split with Yugoslavia, which meant telecoms companies were operating out of regional bases. Now, with a more centralized political and business culture, nearly 70% of telecoms mail and parcels are sent from Zagreb. 

The two largest abandoned Croatian Post sorting centers were based in the heart of the nation’s capital, where there were height restrictions on vehicles. With a ban on trucks higher than 3.1m visiting the center, Croatian Post had to rely on smaller vehicles, which slowed operations considerably. Meanwhile, the employees in the largest sorting center were spread out over three floors with access provided by two antiquated elevators. They had to operate out-of-date sorting technology that had been purchased 50 years earlier. 

“Our parcels used to pass through several sorting processes and the process had to mostly be done by hand,” Vidka explains. “There were only eight chutes and the capacity was 2,000-2,400 parcels an hour, which wasn’t fast enough as business kept growing. The new automatic sorting machine in Zagreb has 55 big chutes for parcels, which allows us to program 160 destinations. And we’ve got a further 90 smaller chutes. Capacity has risen nearly 700% and we can reach speeds of 15,000 parcels an hour.” 

Croatian Post has around 85% market share of the letter business

All together now

The larger size of the new complex has enabled Croatian Post to merge key departments and divisions in one place. The hub houses the sorting office, postal logistics, parcel logistics, transit and vehicle fleet, IT and data center, and business support. A key element is the high shelving warehouse with space for 8,000 pallets and a total bearing capacity of 6,400 metric tons. The warehouse is connected to the sorting office and situated near the parcel sorting machine. As everyone is based on one floor, the flow of business and information has improved. “We have 1,500 employees in one place as opposed to multiple sites in Zagreb like before. Now, all the research and investment, such as testing new technology, is done in the new center,” Vidka continues. 

Croatian Post has also designed the new Zagreb center to be environmentally efficient. The company recently installed charging stations for its growing fleet of electric vehicles, and LED lighting is fitted throughout. There are air-source heat pumps and solar heat collectors that cover 60% of hot water requirements. Other energy-saving measures include the hydraulic ballasting of heating and cooling systems, the use of frequency-regulated pumps, and heat recovery from all heating, cooling and ventilation systems. A centrally monitored control system regulates all operations to save energy. The company has also disposed of 500 metric tons of waste paper, plastic, cardboard and iron over the past year. Finally, a solar power plant with a capacity of 1MW is planned for the roof. “A lot of the initiatives arose because we hired an environmental expert to advise us when we started planning the center,” Vidka explains.

Coping with Covid

A few months after the center opened near Zagreb Airport, the Covid-19 pandemic struck. E-commerce sales in Croatia soared by 30% as Zagreb’s shops were forced to close, but the anticipated need to hire more staff never materialized. “We rearranged the workforce and shifted roles, and we ended up  not needing any extra people to deliver on time,” Vidka says.

Without the new technologies and efficiencies, it would have been difficult to cope with the surge. According to Vidka, the company’s major customers in telecoms and banking are “very demanding” and even a pandemic would be no excuse for delays. Some issues with addressing meant that the company had to invest in new technology to read all types of labeling and keep up with demand.

A new letter sorting machine at the center can sort 230,000 letters an hour

Croatian Post chose BlueCrest automated parcel sorting machines that allow parcel addresses to be read in four different ways. The four methods involve using barcodes, video coding, OCR readers and manual reading. The BlueCrest technology also benefits from neural network software that is able to track the historical ‘aliases’ of current addresses, making an accurate read more likely. “There are several advantages of neural networks,” explains Vidka. “The software tracks what happens on individual streets. If no address on a street has been contacted for a month, it will flag it up and we can find out why. It means we’re able to optimize our databases practically every month.” 

When parcels arrive at the Zagreb center, they go to the unloading ramp, then to one of the sorting machines, where they are prepared for the final destination. After that, the parcels are loaded onto trucks and shipped away. The entire process is much faster than before. “The new hub has shortened the sorting process, which now contains only three points of parcels processing for domestic, and four points for international shipments. We are currently working on an IT solution that will enable us to process international shipments also in three points,” Vidka explains. 

Croatian Post is investing in technology at its other sites too. The city of Split houses another sorting center with automation, and a new 5,000m2 hub is being built in the city of Rijeka. This will have its own solar-powered plant, but it won’t be fitted with automated technology because the central Zagreb hub is only 75 minutes away by road. “After the Rijeka base opens, we’ll have four up-to-date sorting facilities and we’ll probably be able to reduce our total number of hubs to six nationwide, with the Zagreb one able to expand to deal with the growth from e-commerce in the years ahead,” says Vidka.

Share. Twitter LinkedIn Facebook Email
Previous ArticleFedEx acquires e-commerce platform ShopRunner
Next Article How is the role of postal and delivery networks changing during the Covid-19 pandemic?

Related Posts

Features

FEATURE: Overcoming cross-border e-commerce customs challenges

May 14, 202514 Mins Read
Features

EXCLUSIVE INTERVIEW: Egypt Post

May 1, 202511 Mins Read
Features

FEATURE: Improving reverse logistics with better data and collaboration

April 15, 202514 Mins Read

Receive breaking stories and features in your inbox each week, for free


Enter your email address:


Latest News

Aviation Sans Frontières and Windracers launch humanitarian drone operations

June 16, 2025

FedEx improves operational processes with AI-powered robotic sorting arm

June 16, 2025

Yeep! rolls out 1,000th locker in the UK

June 13, 2025
Getting in Touch
  • Contact Us / Advertiser
  • Meet the Editors
  • Download Media Pack
  • Breaking News Emails
Our Social Channels
  • Facebook
  • LinkedIn
Supplier Spotlights
  • KEBA Handover Automation GmbH
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
  • Notice & Takedown Policy
  • Site FAQs
© 2025 UKi Media & Events a division of UKIP Media & Events Ltd

Type above and press Enter to search. Press Esc to cancel.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Advertisement" category.
cookielawinfo-checkbox-analytics1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Analytics" category.
cookielawinfo-checkbox-functional1 yearThe GDPR Cookie Consent plugin sets the cookie to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Necessary" category.
cookielawinfo-checkbox-others1 yearSet by the GDPR Cookie Consent plugin, this cookie stores user consent for cookies in the category "Others".
cookielawinfo-checkbox-performance1 yearSet by the GDPR Cookie Consent plugin, this cookie stores the user consent for cookies in the category "Performance".
elementorneverThe website's WordPress theme uses this cookie. It allows the website owner to implement or change the website's content in real-time.
JSESSIONIDsessionNew Relic uses this cookie to store a session identifier so that New Relic can monitor session counts for an application.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

CookieDurationDescription
__cf_bm30 minutesCloudflare set the cookie to support Cloudflare Bot Management.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

CookieDurationDescription
CONSENT2 yearsYouTube sets this cookie via embedded YouTube videos and registers anonymous statistical data.
uidsessionThis is a Google UserID cookie that tracks users across various website segments.
vuid1 year 1 month 4 daysVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos on the website.
_ga1 year 1 month 4 daysGoogle Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors.
_ga_*1 year 1 month 4 daysGoogle Analytics sets this cookie to store and count page views.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

CookieDurationDescription
OAGEOsessionOpenX sets this cookie to avoid the repeated display of the same ad.
OAID1 yearCookie set to record whether the user has opted out of the collection of information by the AdsWizz Service Cookies.
VISITOR_INFO1_LIVE5 months 27 daysYouTube sets this cookie to measure bandwidth, determining whether the user gets the new or old player interface.
YSCsessionYoutube sets this cookie to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt-remote-device-idneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt.innertube::nextIdneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

CookieDurationDescription
VISITOR_PRIVACY_METADATA5 months 27 daysDescription is currently not available.

SAVE & ACCEPT
Powered by