Tesco signs multi-year contract with XPO Logistics

Tesco has signed a multi-year contract with freight transport service XPO Logistics to secure fuel distribution across the grocer’s petrol stations in the UK.

Under the contract, XPO will provide a tanker fleet and 350 specially trained drivers to collect fuel at terminals and distribute it to over 500 Tesco consumer petrol stations and regional distribution centres.

Additionally, 150 drivers will be despatched from XPO’s Thurrock, Essex depot, which also provides centralised control tower management of transport activities. On top of this, 18 outbase depots will overlook the nation’s delivery capability.

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Prior to the agreement XPO had already been providing services to Tesco for over 25 years.

Currently, the fuel company’s drivers and subcontractor network provides around six billion litres of fuel for Tesco a year.

The news comes after April’s agreement between Tesco and XPO which secured temperature-controlled distribution of chilled foods for the supermarket.

Both companies have also collaborated on building a carbon-neutral and carbon-negative transport services that align with Tesco’s sustainability initiatives.

“Together, Tesco and XPO benefit from a partnership that has been built over many years on trust, agility and creating value,” XPO Logistics UK and Ireland managing director Dan Myers said.

“I’m extremely proud of how the colleagues from both businesses engage as one team that consistently delivers for this partnership. My thanks go to them for their efforts, and also to Tesco for the continued trust they place in XPO.”

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