Tigers will open a new mega-hub in Rotterdam, the Netherlands, in April 2020 to meet rising customer demand from the e-commerce sector and the growing need for dual-hub European logistics systems as Brexit looms.
Shippers have been relocating distribution and storage capacity to continental Europe ahead of the U.K.’s expected exit from the European Union (EU). Shahar Ayash, Tigers’ managing director for U.K. and Europe, told FreightWaves it was a two-way trend.
“We are seeing an increase in demand for dual hub systems, but it is mainly coming from EU-based companies looking for warehouse space in the U.K. to ensure they can still operate effectively post-Brexit,” he said.
“Many companies are splitting their inventories between the U.K. and the EU to prepare for Brexit, with large facilities in Europe and smaller operations in the U.K.”
The new 550,000-square foot hub facility is currently under construction and will become Tigers’ biggest single operation in Europe, offering 60,000 pallet positions and 550,000 bin locations.
Tigers now has 70 offices in 11 countries, including 32 omni-channel distribution hubs. “Rotterdam is the biggest port in Europe and a key gateway to the continent for the supply chain, which is why Tigers has been based there for the past 20 years,” said Ayash.
“E-commerce has also been a huge factor in this development with 70% of orders processed in Rotterdam related to the e-commerce sector, which is set for even further future growth.
“The mega hub will be an advanced omni-channel fulfilment center.”
The new hub, which will replace Tigers’ existing Rotterdam facility, is being built with solar panels on the roof to create a sustainable structure.
“The new facility will be just 10 kilometers from the Port of Rotterdam with close proximity to major road and rail networks, making it strategically located for both first and final mile,” said Ryan Balic, Tigers’ Regional Director of Sales for Europe.
He said it would also accommodate customers with organic growth and to benefit from state-of-the-art facilities, including enhanced security features, multiple storage and picking processes, and dedicated B2C returns.