Building work to start on Telford defence logistics hub

Leidos, the US giant which won the contract to provide the MoD's new logistics contract, today revealed that the first construction workers will move on to the site in September.

A ground-breaking ceremony to mark the start of construction work on the £60 million logistics centre, which is set to provide a massive boost to the economy of Telford & Wrekin, is to take place in mid-October.

A Leidos spokesman said: "Preparatory work on the defence fulfilment centre site at MoD Donnington will begin next month. Construction work will begin in mid-October, which will be marked with a ground-breaking ceremony. Construction is expected to be completed in Autumn 2016."

The contract for the running of the UK's defence logistics operation, a move which will see around 1,200 staff from across the UK transferred into the operation, was won by Telford in a major coup for the town earlier this year.

Leidos was named the preferred bidder for a multi-billion pound contract to deliver logistics services for the British Army in February, with Telford its preferred location for the central logistics centre.

Situated between MoD Donnington and the Hortonwood Industrial Estate in Telford, the fulfilment centre will be used for storage of equipment to be transported to the front line once it is complete.

Leidos has set up a UK subsidiary to run the operation, but is not expecting to impose massive changes early in its tenure, to minimise the impact on front-line operations.

In total, the contract to manage the logistics operation is estimated to be worth between £7 billion and £8 billion over the next 13 years – but that figure could rise to £13 billion if the MoD expands the range of products handled under the co-called Logistic Commodities and Services Transformation programme.

The construction of the centre will be funded by the Ministry of Defence, and not by a loan secured by Telford & Wrekin Council as had been expected.