Tesco has become the first major UK retailer to transport freight by canal.

The supermarket has begun three barge journeys a week to move crates of Australian, Californian, Chilean and Argentinian wine from the Port of Liverpool and a container terminal at Irlam, along the Manchester ship canal to Manchester. The containers are then transported to a bottling depot less than half a mile away and packed for Tesco's stores.

Until now, the wine shipments have arrived in the UK at various southern ports by ship before being driven to the Manchester bottling site.

The move is a collaboration between Tesco, Peel Holdings - which runs the canal and the Port of Liverpool - and importer Kingsland Wines.

Laurie McIlwee, Tesco distribution director, said the company is continually reviewing alternative green methods of transporting cargo and this is the company’s first waterborne project within the UK. He said the company is looking at other areas where the company can move freight on waterways.