DP World Plans £1 Billion Expansion of London Gateway Port
DP World, a major port operator based in Dubai, has confirmed it will invest £1 billion ($1.3 billion) in expanding the London Gateway port. This decision follows some tension with UK government officials over past issues involving P&O Ferries, which DP World owns. Despite earlier threats to pull out of an investment summit, DP World’s Chairman, Sultan Ahmed bin Sulayem, has decided to attend the event.
Government Tension Over P&O Ferries Issue
DP World’s participation in the summit was in doubt after Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh criticized the company. Their concerns were linked to an incident in March 2022, where P&O Ferries laid off hundreds of workers without warning. In response, Prime Minister Keir Starmer softened some of the earlier criticism to smooth things over with DP World.
Massive Investment to Expand London Gateway
DP World has been operating the London Gateway since 2013, investing £2 billion over the past 11 years. The new £1 billion investment will add two more berths, increasing the port’s capacity by 50%. The number of jobs at the port will also rise from 1,200 to 1,600, creating more employment opportunities in the region.
Currently, London Gateway has three active berths that handle large container ships, and a fourth berth is set to open in the next few weeks. The new investment will allow the port to add two more berths over the next few years. The expansion aims to make London Gateway the UK’s busiest container port, surpassing Felixstowe by 2030.
Environmental Approvals and Expansion Plans
The expansion project is still subject to building and environmental approvals. As part of the plan, DP World will reclaim land along the River Thames to make space for the fifth berth, expected to open within three years. A new rail terminal will also be built, along with a sixth berth in the future.
Logistics Park and Future Opportunities
London Gateway is more than just a port; it is home to a large logistics park that offers warehouse, manufacturing, and distribution space. The park is currently 50% full and covers 10 million square feet. Big companies like DHL, UPS, and Compagnie Fruitière UK operate from there. The latter runs one of the largest banana-ripening facilities in the UK.
DP World’s decision to locate its operations near a deep-sea port and provide direct rail connections offers a different strategy from the traditional “golden triangle” of warehousing and distribution centers in the Midlands, near Birmingham.
London Gateway as a Freeport Site
As a UK freeport, London Gateway offers tax incentives and customs support to companies operating within the site. This makes it an attractive option for businesses seeking efficient import and distribution solutions.
Confidence in the UK Market
In an interview before the recent tensions with the UK government, a DP World executive expressed the company’s continued confidence in the UK economy.
This major investment signals DP World’s long-term commitment to expanding its presence in the UK, helping London Gateway become a major player in the global shipping industry.