News - 22 February 2010
Tesco to shift Manchester DC haulage from Wincanton to Eddie Stobart
Eddie Stobart has scooped yet more work with retail giant Tesco by winning the transport operation from the supermarket's Middleton, Manchester site from its incumbent provider, Wincanton, as of 21 March.
Tesco will also take the warehousing operations at the Middleton 2 DC on the Stakehill Industrial Estate back in-house. In addition, from July, Tesco intends to exit the 200,000ft2 Middleton site and lease a 528,000ft2 warehouse on Stobart's 3MG estate in Widnes, Cheshire.
A consultation with approximately 700 Wincanton employees began yesterday (16 February) over the proposed changes, with the involvement of trade unions. Of these staff, 450 are warehouse workers, 200 drivers, and 50 managers. All staff are eligible to transfer to Tesco or Stobart under TUPE regulations.
Stobart's appointment as transport provider for the site follows a succession of Tesco contract wins over the past two years, including a £15m five-year contract to run a second rail freight service for the retailer, and a £25m distribution contract for Tesco's purpose-built import centre at Teesport, Middlesbrough, plus DCs including Chesterfield, Derbys and Middlewich, Cheshire.
A Tesco spokeswoman says: "The site at Middleton is 20 years old now, and provides no room for expansion. However, the number of stores the site services has grown considerably in this time, and it can no longer meet current or future demands." Tesco adds that the new facility offers access to alternative transport infrastructure, such as a port and railhead which will "allow us to explore future opportunities to help us further reduce freight travelling by road".
A spokeswoman for Wincanton adds: "Both Tesco and Wincanton wish to make it clear that this decision is in no way a reflection of the commitment and quality of service of the Wincanton team. Tesco is a valued, long-term customer of Wincanton, and the two companies continue to be partners in the management of Tesco's supply chain."
Wincanton will continue to operate transport and warehousing for Tesco at Snodland, Kent and Daventry, Northants.
Source: roadtransport.com