NewCold, the deep-frozen storage and logistics specialist is looking at possibilities for a new UK site to accommodate increased UK market activity and in anticipation of the demand expected to be triggered by the ‘Brexit effect’ in European Supply Chains.
According to NewCold Country Director Jon Miles, the movement of goods from central European hubs into the UK will become more complex, based on the likelihood that we will leave the Customs Union and the impact that will have on Supply Chains.
“Currently, it is possible for a food producer to store product in a warehouse close to the coast in Belgium or France and deliver directly into UK Distribution Centres within acceptable lead times. However, a recent study by Imperial College London has indicated that even an additional 2-minute stop at customs checkpoints could lead to the final 40 miles of the journey to the Channel Tunnel taking 5 hours. The time and risk associated with these increased journey times will mean that the most obvious solution is to store the products closer to the market in the UK.”
NewCold has already bolstered its UK deep-frozen storage and handling capability with the addition of 600,000 cubic metres of fully automated deep-frozen capacity to its Wakefield site.
“Frozen food handling in the UK is already in peak demand,” adds Jon, “and we have developed the Wakefield facility in line with the projected long-term requirements of our key customers, and positive market outlook. Kantar World panel reported volume up by 2% in 2018, and this annual growth is expected to continue for at least the next 5 years. Phase two of the Wakefield site expansion lifts our capacity to 143,000 pallets but even so, we expect to be 70% full by June 2018. Add this to the increase in storage demand which is likely to be caused by Brexit and it is clear to see why we need to make provision for an additional UK facility.”