Saturday 22nd Oct 2016 - Logistics Manager

Heathrow extends consolidation centre contract

Heathrow Airport has extended its contract with DHL Supply Chain for the operation of the Heathrow Consolidation Centre until October 2012 in a deal worth £9 million a year.

DHL will be responsible consolidation of deliveries to 323 retail and catering outlets, pubs and restaurants within the airport beyond the duration of the Olympic Games when passenger levels are expected to rise.

The new agreement has almost doubled in size for DHL and supports significant investment at the centre including a new mezzanine floor which will increase capacity and provide additional services to retailers and other airport businesses.

DHL has managed the centre since 2001. The facility is based one and a half miles from the airport where retailers deliver inbound goods. DHL cross-docks merchandise, manages a booking system and security screening process and delivers to both landside and airside stores. The process enables retailers an easier and quicker turnaround of stock as the centre manages all airside security with deliveries made direct to stores.

The company reckons that last year a total of 218,000 km were saved from the consolidated deliveries on the DHL fleet, including an electric vehicle, which amounted to 158,000 kg fewer CO2 emissions and a significant reduction in congestion.