Eddie Stobart has won a distribution contract for Tesco's new 910,000ft2 purpose-built import centre at Teesport, Middlesbrough.
The agreement, worth in the region of £25m annually, will see Stobart move the bulk of Tesco's non-food products to distribution warehouses throughout the UK.
Andrew Tinkler, chief executive of Stobart Group, says: "This major new contract is aligned to Stobart's multimodal strategy and gives us the potential to increase movements from road to rail."
Tesco says that by relocating its existing facility from Coventry to the North-East, it will cut the number of road journeys it makes by 12,000 per year. Goods arriving by ship go straight on to trains, thanks to the on-site rail infrastructure, and are then transported to regional distribution centres (RDCs) where trucks collect them and deliver them to stores.
Tinkler says: "Tesco and Stobart started working together nearly five years ago and both organisations share a vision of maximising load fill to reduce 'empty' road miles plus provide a cost-effective and environmentally friendly solution."