DP World has reached an agreement with GXO Logistics (NYSE: GXO) for the transfer of six contract logistics sites serving grocery customers, with more than two million square feet of warehouse capacity and 2,000 personnel.
GXO’s transfer of the sites was a regulatory condition to the UK Competition and Markets Authority’s (CMA) approval of GXO’s acquisition of Wincanton, and has been approved by the CMA.
The sites, five in England and one in Northern Ireland, serve Asda, Sainsbury’s and the Co-op and will transfer to DP World in September. More than 2,000 employees will join DP World’s UK operations, which include major container ports at London Gateway and Southampton, logistics, freight forwarding and marine services. GXO will retain transport operations at all applicable sites.
The agreement marks a significant milestone in DP World's growth, expanding its contract logistics footprint in the UK and strengthening its ability to provide integrated supply chain solutions for customers in the grocery, retail and consumer sectors.
The six facilities add approximately two million square feet of warehouse capacity to DP World's UK network, and provide services for ambient, chilled, frozen, and bonded storage capabilities to support the grocery customer needs. The addition enhances DP World's national distribution footprint, creating a stronger platform to support customers through every stage of the supply chain, from port and terminal operations through to vast warehousing.
The sites play a critical role in supplying grocery products to communities across the UK, serving out-of-town supermarkets, branded convenience and neighbourhood stores. Some 46,000 unique products will be stored at the warehouses.
Angela Howard, Vice President, Contract Logistics, North Europe at DP World, said: “We are delighted to welcome these six sites and the talented teams who operate them into DP World. They support some of the UK's best-known grocery retailers and play a vital role in keeping products moving efficiently through complex supply chains every day.
“For our customers, it will be business as usual, backed by the strength, scale and investment of a global logistics business. By adding these operations to our network, we are expanding our ability to provide seamless supply chain solutions that connect ports, transport, warehousing and distribution through a single, integrated platform.
“This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe. It strengthens our presence in key retail and consumer markets, broadens our geographic reach and further enhances our ability to create value for customers.”
The agreement reflects DP World's continued growth in the UK logistics sector and its commitment to helping customers build more resilient, efficient and connected supply chains. By combining these new facilities with its existing infrastructure and logistics services, DP World is further strengthening its position as a leading provider of end-to-end supply chain solutions in the UK and across Europe.
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