Tesco has awarded XPO Logistics, the provider of freight transportation services, a multi-year contract renewal to distribute fuel to Tesco consumer filling stations throughout the UK.

XPO deploys a dedicated tanker fleet and 350 specially trained drivers to collect fuel at nationwide UK fuel terminals and allocate it to more than 500 Tesco consumer filling stations and regional distribution centres. The company's drivers and subcontractor network deliver approximately six billion litres of fuel for Tesco per year.

The renewal follows the April announcement of a new agreement between the two companies, under which XPO is responsible for the temperature-controlled distribution of chilled foods for Tesco.

Dan Myers, managing director – UK and Ireland, XPO Logistics, said, "Together, Tesco and XPO benefit from a partnership that has been built over many years on trust, agility and creating value. I'm extremely proud of how the colleagues from both businesses engage as one team that consistently delivers for this partnership. My thanks go to them for their efforts, and also to Tesco for the continued trust they place in XPO."

The two companies will also collaborate on developing a plan for carbon-neutral and carbon-negative transport solutions that support Tesco's sustainability objectives. In 2009, Tesco became the first business globally to set the ambition to become zero-carbon by 2050, and are on track to reach net-zero in their Group operations by 2035 and across their whole supply chain by 2050.