London Gateway is on the verge of a significant transformation, positioning itself to challenge Felixstowe as the UK’s largest port.
With the opening of a new berth, funded by Dubai Ports World (DP World), the port’s capacity is set to increase dramatically.
Expanding Capacity to Compete
This expansion, supported by Dubai Ports World, aims to increase the port’s capacity by over a third. Positioned on the north bank of the Thames, London Gateway’s new berth will extend its quayside capacity to over a mile. With 16 quay cranes, each as tall as the London Eye, the port will be equipped to handle four 400-metre ultra-large container ships simultaneously. The prospect of a fifth berth is also on the horizon, further solidifying London Gateway’s ambitions.
Ernst Schulze, chief executive of DP World’s UK Ports & Terminals, including Southampton, has stated confidently: “We expect to overtake the competition within five years.” The new berth is set to become operational in August and fully functional by year-end. Currently handling 2.4 million TEU annually, the addition of the fourth berth, costing £350 million, will increase capacity by 35 to 40 percent, adding another 1 million TEU per year.
Vision for a Global Trading Hub
The growth of London Gateway is aligned with DP World’s vision of a “Jebel Ali-on-Thames,” transforming the port into a significant free trading outpost. This ambitious plan also includes the adjacent logistics park, which has the potential for 9.25 million sq ft of warehousing.
Already more than half occupied, the logistics park houses storage for perishable goods, electronics, alcohol, and bonded warehouses. Currently employing 1,500 people in addition to 880 port workers, the facility aspires to become the largest of its kind in Europe. Schulze emphasised the importance of this park in attracting light industrial units benefiting from tax incentives within the Thames Freeport.
Necessity of Expansion
Schulze highlighted the critical need for expanding London Gateway, stating, “Britain needs more port capacity and the right infrastructure to handle the largest vessels.”
He pointed out the importance of building resilience against supply chain disruptions, as seen during the pandemic. The port aims to capture volumes from other UK ports, increase containerisation, and leverage overall growth in the British economy.
Dominance in Import Markets
London Gateway claims a dominant share of UK imports from South America, Africa, Australasia, and the Mediterranean. This segment accounts for 75 percent of the port’s current operations.
While Felixstowe, which handled 4.2 million TEU in its peak years, remains a formidable competitor, London Gateway’s ambitious expansion is strategically positioned to challenge its dominance.
Future Prospects and Strategic Positioning
The future prospects for London Gateway look promising, particularly with its new berth increasing capacity and operational efficiency.
The strategic location on the Thames, combined with the substantial investment from DP World, positions it well to attract more maritime traffic.
Operational Efficiency and Economic Impact
London Gateway’s enhanced operational efficiency will likely improve its competitiveness in the port industry.
The economic impact of this expansion cannot be understated. With increased capacity and strategic positioning, the port is poised to attract significant business, further boosting the UK economy.
Conclusion
With its strategic expansion, London Gateway is set to challenge Felixstowe’s dominance in the UK port industry. The new berth, coupled with the extensive development of the logistics park, positions London Gateway as a crucial player in global maritime trade.
London Gateway’s expansion signifies a strategic shift in the UK’s port industry, aiming to surpass Felixstowe.
With significant investment and strategic vision, London Gateway is poised for a transformative leap in capacity and operational efficiency.
