Tesco to Build High-Tech, Eco-Friendly Logistics Hub at London Gateway
Tesco has unveiled plans for a next-generation distribution centre at DP World London Gateway, marking a major investment in the future of its supply chain. The facility is set to open in 2029.
This ambitious project is part of Tesco’s long-term strategy to strengthen its logistics network, which is vital as customer demand and store numbers continue to grow across the UK. The new site aims to enhance operational efficiency while aligning with the company’s environmental goals.
The distribution centre will feature the latest in warehouse automation and is designed with sustainability at its core. Tesco is targeting BREEAM Outstanding certification—one of the highest benchmarks in green building standards in the UK.
The retailer will deliver the project in partnership with Witron, a global leader in intelligent logistics systems.
“Our distribution network is vital for ensuring customers receive products at the right place, time and condition,” said Andrew Woolfenden, Tesco UK Distribution & 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, known for powering logistics operations for some of the world’s biggest retailers, sees this as a landmark development.
“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,” said Helmut Prieschenk, CEO at Witron.
“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.”
DP World London Gateway, with its unique combination of port and logistics park, offers a strategic location with direct links to global trade routes and inland UK transport.
“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,” said Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
“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.”
Once operational, the facility is expected to support Tesco’s expanding store network, improve delivery precision, and reduce environmental impact—offering long-term benefits for the business, customers, and the broader supply chain.
