There was palpable relief in the corridors of British power this morning. The relief came as DP World announced a planned one billion pound investment (US$1.31bn) investment in its UK interests. The Dubai headquartered company has announced a radical expansion of its London Gateway container terminal on the River Thames. The whole project had been in doubt after a political spat, bordering on a diplomatic incident, had seen the company threaten to pull out.
The multinational maritime and logistics company, the emirate-backed DP World, has this morning (14 October) announced a £1bn expansion of London Gateway to make it Britain’s largest container port within five years. That would see the Essex port overtake Hutchison Port’s Felixstowe, and rival other facilities around Europe and the world. London Gateway already handles around 2m TEU annually, and the expansion plans could add around half as much capacity again.
Bigger cranes than Big Ben
DP World will increase capacity of London Gateway’s port by building two new shipping berths, taking the total to six berths able to receive the world’s largest container ships. The site will also see a second rail terminal added to handle the expected increase in containerised trade. By the end of the decade, according to the company, the full quayside will be extended to 2500m, and will be able to simultaneously receive six vessels, each more than 400 metres long. DP World claim the port will be served by Europe’s tallest quay cranes – which will rival London’s famous Big Ben clock tower.
The bells were tolling for the UK government prior to the announcement. An untimely statement, made last week in support of new employment legislation had named DP World subsidiary, P&O Ferries, as a ‘rogue employer’, referencing a ‘fire and rehire’ policy which had cost 800 British staff their jobs. An angry reaction from Dubai threatened to withdraw from an economic summit held today, and to review their investment plans. A whirlwind round of diplomatic exchanges over the weekend seems to have saved the day.
Europe’s largest logistics park
The expansion at London Gateway will create a further 400 permanent new jobs, in addition to the 1,200 currently employed at the site. DP World says this is the culmination of a rapid growth plan for the Thames Estuary hub which opened in 2013 and has been a catalyst for economic regeneration in south Essex. “The expansion will take the total invested by DP World at London Gateway to more than £3bn, converting the site of a former oil refinery into one of the UK’s largest and most important logistics hubs,” says the company. “The site has most recently seen the addition of a £350m (US$457m) fourth berth, the first to be powered entirely by electricity, and which will soon accept its first ship.”
DP World says it has established Europe’s largest logistics park, employing 1,500 workers, as a counterweight to the English Midlands ‘golden triangle’ of UK logistics. Tenants at the park benefit from storage, warehousing and distribution services linked to dedicated rail freight and motorway connections. There is also quick access to the important consumer market of London and the South East.
“DP World London Gateway will help make Britain’s trade flow in the future by connecting domestic exporters with global markets and delivering vital supply chain resilience for the whole economy,” said Sultan Ahmed bin Sulayem, Group Chairman & Chief Executive Officer at DP World. “I am proud of this major investment which underlines DP World’s long-term commitment to the UK.” No reference was made to last week’s argument. In business, such things are quickly forgotten – especially when it makes business sense to do so.
