A £23m distribution centre is to be built at the Port of Southampton, creating 35 jobs.

Logistics company Import Services, working with port operator ABP, has broken ground on the 200,000sqft warehouse with builder Midas.

The building will adjoin Import Services’ existing distribution hub at the Western Dock and will double the company’s capacity.

It is unconnected with ABP’s plans to demolish the Solent Flour Mills on the Western Dock, which has attracted objections.

Mike Thomas, client services director at Import Services, said: “Import Services’ new distribution centre will be just 100 metres away from where the deep sea container ships dock. With this new facility plus technologically advanced equipment, our teams will be able to process containers efficiently, process orders and deliver straight to the point of demand.”

The warehouse has been designed to meet high environmental standards and will feature roof-mounted solar panels costing ABP £2.5m, more than doubling the amount of solar power generated at the port.

Mr Thomas added: “Reducing the amount of carbon generated by the logistics industry is front of mind in our thinking. We know port-centric distribution can reduce supply chain emissions and the use of back-haul working with retailers can realise further carbon reductions.

“Our port-centric model, with this new distribution centre, will allow us to take important steps forward in tackling time, cost and carbon, the three key components of supply chains, as we head into the 2020s.”

Import Services, a subsidiary of freight management provider Xpediator, will hold stock for distribution across the UK, continental Europe and global markets.

The building is expected to be complete next spring.

Stephen Blyth, chief executive of Xpediator, said: “Historically, Import Services have not always had the capacity to meet demand. This new facility will not only enable us to meet the demand but also capture additional market share by being able to offer superior technologically advanced services.

“The timing of this expansion could also work favourably with the UK’s move outside of the European Union.”

ABP’s head of commercial and property, Clive Thomas, said: “We were pleased to work with Import Services on this investment to expand their operations on the port.

“Following the previous expansion in 2015, we are delighted to continue to our long-standing relationship of investing to support a key port customer and to ensure that port-centric operations continue to deliver the most environmentally conscious, effective and efficient part of a logistics supply chain.”