Logistics giant DP World confirmed it would invest £1bn into its London Gateway port at Labour’s investment summit on Monday – only days after causing disarray among ministers with rumours of a delay to the project.
The multinational had reportedly considered pulling the breaks on the billion-pound pledge after transport secretary Louise Haigh criticised its subsidiary P&O Ferries, according to a Sky News report.
But DP World confirmed at the Labour Party’s flagship business event that it would go ahead with the investment into its port terminal in Essex.
This was after No 10 distanced itself from comments by Haigh, as well as deputy prime minister Angela Rayner, who were critical of P&O over its decision in 2022 to make 800 staff redundant with immediate effect and hire cheaper agency labour – prompting huge backlash from workers, unions and politicians alike.
London Gateway port and its logistics park is the largest in the UK, having expanded significantly over recent years.
DP World also confirmed it would continue its port’s expansion for at least the next five years.
Around 50% of all the refrigerated food coming into Britain comes through London Gateway already, primarily fresh fruit, but also fresh and frozen meat and seafood.
How DP World’s London Gateway is planning to become the sustainable logistics hub of choice for food businesses
The deep sea port and logistics park is also supported by its own international rail terminal. DP World recently announced the expansion of its rail capacity between London Gateway and its Southampton container port, with the launch of a second weekly rail service connecting both hubs.
The first rail service was launched in 2022. This expansion will help customers – including those in the food and grocery industry – to have increased access to storage and handling, freight forwarding and delivery services at London Gateway.
It is also part of a wider DP World strategy to increase rail movements in efforts to slash carbon emissions.
The company is involved in the supply chain-focused modal shift programme, involving major food and retail businesses including Coca-Cola and Tesco, which aims to drive a shift from road to rail.
John Trenchard, VP of commercial & supply chain for DP World UK, said: “Launching a second rail service between London Gateway and Southampton is the next logical step for DP World, given the clear benefits for our customers.
“Providing a cleaner and more cost-efficient way to move cargo across the country is a key priority for DP World in the UK, and modal shift has consistently proven to be a reliable and flexible solution.”
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