Friday 21 October 2016

Tesco swaps Stobart for DHL in €45m transport contract

Published 12/06/2016 | 02:30

(Stock picture)
(Stock picture)

Tesco has changed transport providers, awarding the major logistics contract to DHL.

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The contract was previously held by Eddie Stobart Logistics, the trucking arm that was spun out of the Stobart parent company.

About 150 Eddie Stobart Logistics staff who are assigned to Tesco will transfer to DHL.

Tesco would not comment on the value of the contract but a source said it is worth around €45m.

The change will take effect from October. DHL has secured the contract for three years.

"Our transport and distribution operations contracts recently came up for renewal and as a result we tendered the business to ensure we remain competitive" said a spokeswoman for Tesco.

"Under the Transfer of Undertakings legislation, ESL staff who are wholly or mainly assigned to Tesco will transfer to DHL."

The contract for managing Tesco's chilled and frozen foods centre in Ballymun was awarded to the Keelings group for another year. Family business Keelings has run it for more than a decade.

Sunday Indo Business

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