Tesco, the UK’s largest retailer, has signed an agreement with PD Ports to develop a 1.2m sq ft (110,562 sq m) import centre within Teesport on the UK’s north-east coast. Occupying a 66 acre (26.7 ha) brownfield site adjacent to the proposed Northern Gateway container terminal, the complex will be built to Tesco’s own design requirements. Work is due to start in July this year, with the first part of the complex operational by autumn 2009.

Tesco to build import centre at Teesport

Set to be completed during the next two years, the centre is expected to create more than 800 new direct jobs, as well as generating additional indirect jobs among local suppliers and logistics companies. Tesco is following a trend set by other major retailers in establishing a northern UK-based regional distribution centre to directly serve local customers, rather than relying on the long-distance haulage of products landed at southern ports.

The complex will be the second of its kind in PD Teesport and will be more than three times the size of the 360,000 sq ft international logistics centre operated by supermarket rival Asda, part of the Wal-Mart Group, also located on the port estate. In recent years this has attracted regular feeder services from the likes of Maersk, MSC, CMA CGM and K-Line in support of their Far East trades.

The announcement comes close on the heels of the agreement by the UK Government to give the go-ahead for the development of the Northern Gateway port.