UK retail giant Tesco has confirmed a major multi-million pound investment in a new high-tech distribution centre at DP World London Gateway, with operations expected to begin in 2029.
The development underlines Tesco’s long-term strategy to future-proof its logistics capabilities, strengthen its nationwide supply chain, and support the growing demands of its store network. Located adjacent to a major deep-sea port and rail hub, the new facility is strategically positioned to enhance Tesco’s freight efficiency and decarbonisation efforts.
The distribution centre will span a significant footprint at London Gateway, constructed to the highest sustainability standards and targeting BREEAM Outstanding certification. Tesco has tapped Witron, a leading German logistics technology provider, to deliver automated systems and integrated solutions tailored for dry grocery distribution. The collaboration marks another step in Tesco’s shift toward intelligent logistics production.
Enhancing Supply Chain Capacity for the Future
Andrew Woolfenden, UK Distribution & Fulfilment Director at Tesco, emphasized the strategic value of the project.
“Our distribution network is vital for ensuring customers receive products at the right place, time and condition. 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.”
Woolfenden highlighted the importance of the site’s location, noting that Tesco will be able to fully utilise multimodal transport infrastructure, including direct access to sea and rail, to lower transport emissions and increase reliability across its logistics channels.
This project comes as part of a broader industry trend toward consolidating logistics assets near port-centric hubs. London Gateway, in particular, offers importers and exporters direct access to deep-water berths, national rail freight networks, and proximity to major consumer markets in the Southeast.
A Lighthouse Project for Logistics Automation
Describing the scale and complexity of the development, Helmut Prieschenk, CEO of Witron, noted:
“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. With the latest technology and machinery, once fully operational, this represents a large-scale project for dry grocery distribution.”
Prieschenk referred to the initiative as a “lighthouse project” – one that showcases the end-to-end integration of advanced warehouse automation designed for premium store service, operational safety, and environmental responsibility.
Witron has a long-standing track record in automating warehouse infrastructure for major retailers across Europe and North America. This latest partnership with Tesco further cements its role as a major player in logistics innovation within the UK retail sector.
DP World’s Strategic Logistics Hub Grows in Significance
DP World, the global logistics company behind London Gateway, views the Tesco investment as validation of its infrastructure’s central role in transforming UK supply chains.
Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, stated:
“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. 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.”
London Gateway has seen increased interest in recent years from major retailers and logistics companies, especially as supply chain resilience and near-port warehousing become more critical to managing volatile global trade patterns.
This announcement adds to a growing list of strategic investments in the Thames Estuary region, which continues to evolve into a high-capacity logistics and freight corridor for the UK and Europe.
