New distribution hub will leverage latest technology to enhance retailer’s supply chain capabilities, and also support decarbonisation goals
Tesco has announced a multi-million pound investment in a new distribution centre at DP World London Gateway, which it expects to open in 2029.
In collaboration with logistics group Witron, the retailer plans to bolster its network capacity at the site as part of a rolling commitment to future-proofing its distribution network and meet the demands of its growing store network.
According to the company, the new hub will be modern, energy-efficient, and equipped with the latest technology to support further growth.
It is also expected to achieve a Breeam Outstanding certification, demonstrating a commitment to sustainable building practices.
“Our distribution network is vital for ensuring customers receive products at the right place, time and condition,” said Andrew Woolfenden, Tesco UK’s distribution and fulfilment director.
“As demand grows across our store network, we’re excited to partner with Witron and DP World to develop a distribution centre that leverages the latest technology, enhancing our supply chain and supporting our decarbonisation goals. By locating at London Gateway, we can also take full advantage of the seaport and rail infrastructure.”
Witron chief executive officer Helmut Prieschenk commented: “It’s an honour and pleasure for us to be part of this outstanding logistics initiative, which represents the introduction of more intelligent logistics production.
“With the latest technology and machinery, once fully operational, this represents a large-scale project for dry grocery distribution. In terms of end-to-end integration this is a lighthouse project for Witron - which ensures premium store service, an ergonomic, safe and sustainable environment and benefits the whole value chain.”
Sultan Ahmed bin Sulayem, DP World group chairman and chief executive officer, added: “DP World London Gateway is helping to make Britain’s trade flow by sea, road and rail, connecting businesses across the UK with global markets and boosting the resilience of national supply chains. The significant investment announced today by Tesco, one of the world’s leading retailers, is a proud moment for DP World and a vote of confidence in the growing role London Gateway plays in the UK economy.”
