Xpediator subsidiary signs 20-year lease at Southampton port

Freight management service provider Xpediator announced on Wednesday that its subsidiary, Southampton-based port-centric logistics company Import Services, has signed a 20-year lease with Associated British Ports for a new 200,000 square foot distribution centre at Southampton's container port.

The AIM-traded firm said the opening of the new facility would take its UK warehousing capability to around 700,000 square feet.

It said Associated British Ports had begun development of the new distribution centre, and was expected to complete in the first quarter of 2021.

The company said the new warehouse site was designed to connect with Import Services' existing quayside distribution centre, doubling its operational capacity.

Together, it said the enlarged facilities would enable Import Services to hold stock under bond for order processing and distribution across the UK, continental Europe and global markets.

It said that, with 24 new access doors, VNA pallet storage configuration as well as “state of the art” equipment and systems, the new warehouse was designed to boost throughput for containers and road vehicles, providing “swift passage” to market and alleviating the need to transport containers inland to distributions centres which will reduce time, cost and carbon from supply chains.

“Import Services' new distribution centre will be just 100 meters away from where the deep sea container ships dock and with this new facility, our teams will be able to discharge containers efficiently, process orders and deliver straight to the point of demand,” said chief executive officer Stephen Blyth.

“Historically, Import Services has not always had the capacity to meet demand, this new facility will not only enable us to meet demand but also capture additional market share by being able to offer superior services.

“The timing of this expansion could also work favourably with the UK's move outside of the European Union.”

At 1416 GMT, shares in Xpediator were up 12% at 28p.