Luís Luz, 48, and Nuno Silva, 35, were unemployed and with little hope of finding a job again. Now, the first is a receptionist for non-perishable products and the second is a frozen food supervisor, and both are part of the batch of 130 employees of the new Algarve Distribution Center of the Jerónimo Martins Group, which opened this Thursday, the 13th, in Algoz (Silves ).
The new structure, the most modern of the Group in the whole country, created 130 direct jobs and another 90 indirect ones, 60% of which are people from Algoz or who live nearby. It buys products from 40 regional producers in the Algarve, of which three from Silves, occupies 27 thousand square meters and cost 25 million euros. All figures that Pedro Soares dos Santos, Chairman of the Board of Directors of Jerónimo Martins, highlighted at the press conference that closed the inauguration programme.
Rosa Palma, mayor of Silves, underlined that it is "gratifying to see the courage and entrepreneurial initiative of those who decide to move forward with an investment of this magnitude."
He also added that this new logistical equipment, the largest of its kind in the Algarve, is part of the policy of its municipality of «attracting and capturing productive investment for the municipality of Silves».
The Chamber of Silves, by the way, had already been praised by Pedro Soares dos Santos in the initial ceremony of cutting the ribbon. The group's CEO made a point of saying that «in few places in the country we have had the collaboration of a Chamber as we had here, in Silves». A compliment that goes not only to the current municipal team, but to the previous one, as Rosa Palma only took office as the new mayor in November, when the Distribution Center was almost ready.
The Algarve Distribution Center will supply all 35 Pingo Doce and Recheio stores in the Algarve and part of the Alentejo, that is, in Sines, Moura and three stores in Beja, as revealed by Joana Barbosa, director of the new infrastructure.
Pedro Soares dos Santos added, for his part, that the Center will also supply the company of food services, to be created by the group.
35 stores in the Algarve and Alentejo supplied from Algoz
The Center began operating on January 14, but, after a first phase of testing, it is only now in full operation. Until the opening of this structure, the 35 stores in the Algarve and Alentejo were supplied from the logistic center of Azambuja, in Greater Lisbon.
Therefore, the main advantage of this new Center is to reduce the costs of the group's distribution channel, as it “shorts transport cycles for the 35 stores”. In transport alone, 2,5 million euros will be saved per year.
«In addition to saving on transport costs, which is good, this Center will allow Jerónimo Martins, in southern Portugal, from the Alentejo downwards, to be closer to the consumer than it was». This will be especially important in summer, especially in July and August, months when it was «very difficult to serve consumers in the Algarve».
But it still allows the group to be closer to the producers. “There is a huge need to get closer and closer to small and medium-sized agricultural producers,” underlined the CA's president. This will bring advantages for Jerónimo Martins, but also for producers, he believes. «For example, our suppliers in the Algarve can leave their product here and we transport it to the North».
Pedro Soares dos Santos added that «80% of the Group's needs [for food products] are guaranteed by national producers», which are 1600 nationally and 40 in the Algarve. One of them, Frusoal, an organization of citrus fruit producers from Tavira, even exports part of its production to the Group's stores in Poland, where Jerónimo Martins, through its Biedronka brand, is the retail market leader.
More investment planned in the Algarve and in the country
Pedro Soares dos Santos also pointed out that this is the first Distribution Center with these characteristics that the group opens in the country and that the next one will open "still this year or in 2015", in Greater Porto, representing an investment of 50 million euros, double what was spent in the Algarve.
Nationally, in Distribution Centers alone, the Group plans to invest «100 to 120 million euros in the next three years».
The number of Pingo Doce brand stores will also continue to grow, but now «with a philosophy based on the franchise». At the moment, there are already “four or five stores” operating in the country in this system, but the chairman of the Board of Directors announced that, from now on, “all our growth outside of Greater Lisbon and Greater Porto will be done with partners places', in a scheme with some similarities to the franchise, although the Group does not cover royalties by the use of the brand. "We share the investment and profitability of the business and thus do not enslave the partner".
In the Algarve, «below the EN125», the Jerónimo Martins Group plans to open «five or six stores, in franchise, in the next five, six years».
In all, in the coming years, 50 stores should be opened nationwide in franchise, in an investment of 250 to 300 million euros. «There will be a sharing of costs between the parties» and the partners will have access to «very advantageous financing lines» through Jerónimo Martins.
Everything organized to ensure maximum efficiency
At the Algoz Distribution Center, everything is organized to ensure maximum efficiency. There are several warehouses depending on the type of product, with temperatures ranging from minus 20 degrees. There are warehouses and specialized work teams with different hours for vegetables and fruits, fish, meat, fresh, and non-perishables.
It is from Algoz that the trucks that supply 35 shops in the Algarve and Alentejo leave now. The vehicles, as explained by the director of the Center, Joana Barbosa, are used 24 hours a day, on routes out of phase according to the type of products to be distributed. There are three deliveries throughout the day: fish and fruit, non-perishable, and still frozen and fresh.
At this time of year, the Center makes a million boxes a month, but in the summer, when the Algarve population more than doubles, the expectation is that it will reach 2,6 million boxes.
A lot to distribute, along the roads of the Algarve and Alentejo, from this logistical center located about 500 meters from Algoz and very close to Via do Infante and the EN125, the main roads in the region.
Silves Chamber open to receive investors
After the initial praise made by the chairman of the Board of Directors of the Jerónimo Martins Group, who underlined the collaboration with the Municipality of Silves in this investment, the municipality is open to new investors.
In statements to the Sul Informação, mayor Rosa Palma revealed that she has received «contacts from more businessmen interested in investing, in this and other areas, but nothing resembling the dimension of this Center».
«Silves wants to continue to be an attractive council for investment. We have our doors open to receive investors and to facilitate investment in the municipality, obviously within the rules”, he added.
The Jerónimo Martins Distribution Center is located in an industrial area/logistics hub defined by the municipality near Algoz and two steps away from Via do Infante, the EN125 and the A2. For this reason, Rosa Palma hopes that “more companies can be concentrated here”. «All investment that generates jobs has to be cherished and is welcome», he guaranteed.
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