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XPO Logistics fuel distribution partnership renewed by Tesco

A multi-year contract renewal to distribute fuel to filling stations throughout the UK has been awarded to XPO Logistics by Tesco plc. The agreement extends a partnership that has already run for over 25 years.

XPO deploys a dedicated tanker fleet and 350 specially trained drivers to collect fuel at nationwide UK fuel terminals and allocate it to more than 500 Tesco consumer filling stations and regional distribution centres. Over 150 drivers are despatched from XPO’s Thurrock, Essex depot alone, which provides centralized control tower management of transport activities. A further 18 outbase depots ensure nationwide delivery capability. The company’s drivers and subcontractor network deliver approximately six billion litres of fuel for Tesco per year.

The renewal follows the April announcement of a new agreement between the two companies, under which XPO is responsible for the temperature-controlled distribution of chilled foods for Tesco.

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

A drive towards sustainability

The two companies also collaborate on developing a plan for carbon-neutral and carbon-negative transport solutions that support Tesco’s sustainability objectives. In 2009, Tesco became the first business globally to set the ambition to become zero-carbon by 2050 and is on track to reach net zero in its Group operations by 2035, and across its whole supply chain by 2050.