New rail service for Tesco

On 1 October 2024, Direct Rail Services (DRS) launched new rail freight service for Tesco supermarkets. This becomes the tenth one to be operated by DRS and the supermarket giant, and demonstrates the long-standing partnership between the two companies. It runs from Tesco’s main distribution centre in Daventry, Northamptonshire, on a 418 km round trip to its regional distribution centre in Trafford Park in the Northwest.

The environmental benefits of rail freight are clear, it emits 76 % fewer CO2 emissions when compared to road transport and this new service replaces the equivalent of thousands of lorries from the road, resulting in a saving of 6,000 t CO2e per year. DRS, Nuclear Transport Solutions’ rail division, is a key partner in intermodal rail transportation and uses its expertise to deliver safe, secure and reliable transport across the rail industry.

A further 31 million cases of goods a year are set to be moved across the country by the Tesco rail network rather than by lorry, as Tesco continues to roll out its rail service across the UK, with the introduction of a tenth rail service since 1 October. The latest Tesco train will move 600,000 cases per week, replacing more than 90 trips per week previously needed to move goods from its main distribution centre in Daventry to its regional distribution centre in Widnes.

The service brings the total number of cases moved by the Tesco rail network to more than 300 million cases per year. With the launch of the tenth train service, the total number of cases moved around the country on the retailer’s rail network will increase to over six million cases per week – increasing to more than seven million during peak periods.

The train will be Tesco’s biggest service to date. By delivering by rail to Trafford Park, products are much closer to stores for the final step in the delivery process, with lorries collecting cases of goods off the train and delivering them direct to store. The new service, in partnership with DRS and Maritime, will extend the network across the country moving both fresh and dry goods, and will bring the number of Tesco stores receiving deliveries by rail to 198.

Heavy goods vehicles make up around 21 % of the UK’s domestic transport emissions and switching to rail can play a significant role in reducing the impact of moving goods around the country. The new service will run six times a week (Monday to Saturday), and the retailer is working with its suppliers to ensure that the return leg of the service is used. Suppliers benefitting from the route include L’Oréal, AB World Foods, PZ Cussons, and Heinz – with beauty, grocery and household products being moved on the service, in turn helping them reduce their emissions too.

Ken Murphy, Tesco Group Chief Executive, said: “Tesco’s distribution network is one of the most extensive in the UK and plays an important role in our efforts to become carbon neutral in our own operations by 2035."

The work being done to decarbonise the Tesco distribution network doesn’t stop there. In addition to moving from road to rail, the retailer is also working to optimise its road transport network by increasing the efficiency where it can. For example, the supermarket has introduced double decker trailers, leading to a 40 % reduction of truck journeys. It has also worked with suppliers who ordinarily purchase transport on a one-way basis to help align orders. This has enabled Tesco suppliers to work together to purchase both legs of a journey, with 50 % fewer vehicles required for these trips.