DP World, the owners of the multimodal port facility at London Gateway, intend to add a second rail terminal. It will be part of a £1bn (€1.17bn) expansion of logistics handling at the Essex port, on the north bank of the River Thames.
The owners have wasted no time in moving ahead with expansion. After DP World was granted planning approval just a few weeks ago. The self-styled global logistics giant is pressing ahead with the £1bn project. They say it will help establish London Gateway as the UK’s biggest container port.
Shipping switch from Felixstowe
The news that DP World intends to build a second rail terminal at London Gateway comes on the back of recent significant wins in the shipping world. The port has been the winner in a deal called the Gemini Collaboration, between two of the world’s largest shipping companies, Hapag-Lloyd and Maersk.
The Gemini Collaboration partners had already announced that they were switching some port calls away from Felixstowe to London Gateway. That news precipitated a shakeup of inland services at Felixstowe, including rail freight consignments. Felixstowe itself is involved in the global sale of Hutchison Ports properties, as reported in depth by our sister service WorldCargo News.
Could Ely miss out?
The loss of Gemini port calls has already prompted a scaling back of rail services at Felixstowe, and casts a shadow over calls for infrastructure development there. There is renewed concern over the long-awaited Ely Area Capacity Enhancement project promoted by the UK infrastructure agency Network Rail. For now though, despite the ambitions of its rival on the Thames, Felixstowe remains both the UK’s busiest container port and the busiest rail freight terminal.
London Gateway, which sits within the Thames Freeport footprint, has been rapidly expanding. Construction work to expand the logistics handling capability is to begin within a month. The new logistics park will take four years to complete say DP World. Construction will support one thousand jobs, and operations will create 400 permanent posts.
Supporting national economic growth
DP World says it has worked at pace to gain regulatory approval for the investment, which was first announced by CEO and Group Chairman Sultan Ahmed bin Sulayem at the UK Government’s International Investment Summit in October 2024. Relations between the company and the UK government appear to be more cordial after that event. A since resigned minister had made public criticism of DP World over controversial employment practices at their subsidiary company P&O Ferries.
The expanded container port, part of the Thames Freeport, will be able to accommodate six of the world’s largest container ships, which will be served by Europe’s tallest quay cranes. Those ships can carry up to 24000TEU – potentially meaning up to 72,000 40-foot containers could be at the port simultaneously. However, it’s unlikely all that cargo would ever be destined for one destination. Global shipping works like the ‘pick-up goods’ trains of old – albeit on a vastly larger scale.
Global hub of operations
“This investment enhances London Gateway’s capacity and new connections between the UK and the global economy,” said Sultan Ahmed bin Sulayem, CEO and Group Chairman of DP World. Last week, he hosted the UK Minister of State for Investment, Baroness Poppy Gustafsson at London Gateway to discuss the project. “The UK is open for business and DP World’s major investment is the latest vote of confidence in our economy, delivering economic growth,” said Baroness Gustafsson. “DP World’s expansion in London Gateway will turbocharge the UK’s logistics sector and help deliver the long-term, stable growth that supports skilled jobs and raises living standards across the UK.”
Over 1,000 construction jobs will be created during the £1bn expansion. Approvals for DP World’s project were secured following close collaboration with the local administration at Thurrock Council and the UK Government’s Marine Management Organisation. The start of construction follows the agreement between DP World and the Gemini Cooperation (Maersk and Hapag-Lloyd) for Asia-Europe and Middle East-Europe shipping services to call at London Gateway. The first ship arrived earlier this month.
In the UK, DP World also operates a busy container terminal at Southampton, where an incentive scheme encourages shippers to move inbound containers by rail.
RailFreight Summit
Terminal operations and the synergies between rail and ports will be one of the main highlights at the RailFreight Summit, taking place in Gdansk, Poland on 8 and 9 April 2025. Sessions will include panels with port authorities and terminal operators. You can find out more about the programme here and get your ticket here.
