Asda warehouse 'will aid goods transportation'

British supermarket giant Asda announced plans today for a major dockside warehouse operation to slash the number of miles needed to distribute UK products.

Products such as George clothing and televisions will be shipped to the £20m (€29.4m) import centre at Teesport, near Middlesbrough, from as far afield as China and Korea.

Asda said the presence of such a large warehouse in the north of England would save the company two million miles on UK roads a year as distribution distances to stores around the country are dramatically reduced.

It will also create 300 new jobs.

At present the bulk of Asda’s imported products are shipped to ports in the south of England such as Felixstowe and Southampton.

They then have to be driven hundreds of miles to distribution centres and stores, many of which are in the midlands, the north of England, and Scotland.

Asda, which is owned by Wal-Mart, estimates it will ship 70% of its imported goods to Teesport rather than to southern ports then driving them north. It will not involve food.

Tony Page, non-food director at Asda, said: “This is great news for the economy in the north-east.

“Not only are we creating 300 new jobs, but we are also paving the way for other retailers to follow our lead.

“The facility will also enable us to dramatically reduce our impact on the environment. We will save two million road miles a year – equivalent to five trips to the moon.”

Asda also said the deal with PD Teesport, which is part of PD Ports, would ease congestion at busy ports such as Felixstowe.

The 360,000-square-foot warehouse is due to come into operation in February next year. A further 150,000 square feet is planned once the warehouse is open.

PD Teesport is one to the busiest ports in the UK and Asda has signed a 30-year lease for the land with an option to extend it for a further 20 years.

PD Teesport managing director David Robinson said: “We are clearly delighted to have secured the world’s largest retailer as a major new customer.

“The presence of Asda will help us attract further deep sea container shipping lines to deliver via Teesport.”

Clothing and other non-food products make up 20% of Asda’s business.