400mn London Gateway contract awarded to DP World

DP World today said it signed a 400 million contract to build the first phase of a new port at London Gateway, the most technically advanced container port in the world, integrated with Europe’s largest logistics park.

A press release by DP World said this is the first major contract to be awarded in the ?1.5 billion project, due to be built over the next 10 to 15 years. The contract is over five years, and will see the construction of the first phase of the port’s quay providing three berths and over 1.2 kilometres of quay in a joint venture between Laing O’Rourke and Dredging International.

The new port will eventually handle 3.5milion TEU (twenty foot equivalent units), providing a much needed increase in capacity for the UK’s container terminals.

The South Essex project is currently set to be the largest creator of new jobs in the UK, delivering over 12,000 in the coming years, and is the largest investment in the South East of England.

According to Chief Executive of London Gateway, Simon Moore, this contract is a major milestone in constructing the port. “In an economic climate where the building industry is experiencing a sharp slow down, this is great news for Essex and the UK in general.” “London Gateway is vitally important for today’s UK economy. It will deliver the most efficient and technologically advanced port in the world and much needed deep sea capacity for the UK.” London Gateway is the UK’s first deep sea container port for over 25 years and will change the way millions of consumer goods are transported around the country. By integrating the new container port with a logistics park, many everyday goods will be sent to the nation’s shops without having to be hauled on a truck to a distribution centre often situated inland hundreds of miles away from a container port. Instead, goods will go straight into London Gateway’s own logistics park to be sorted and then sent direct to shops.

By reducing the need for the goods to travel inland, the project will save 2,000 trucks from the UK’s highways every day, trucks which normally travel from a port and then return with an empty container to be put back onto a ship. DP World estimates that by cutting out this inefficient part of the logistics process, London Gateway will take 52 million truck miles off the UK’s highways every year, reducing congestion, saving time, fuel and curbing carbon emissions.

Using new technology, London Gateway will aim to move fifty percent more containers per hour on and off ships than is currently being achieved in the UK. Containers will be transferred automatically from the quay into a fully automated storage area. This efficiency increase will allow the world’s shipping lines to save valuable time and money. The new port will also offer other benefits such as being more sustainable, creating less light pollution and less noise for the surrounding areas.

Dredging the Thames will be carried out to enable the world’s largest ships to access the port.

The dredging work will allow many other users of the River Thames to benefit by allowing increased access closer to London.

Commenting on the contract award, Mr Moore added: “We needed to find the right combination of construction company and dredging specialist – those that have top-quality experience and a world class reputation – to meet all our requirements. We believe we have found them in Laing O’Rourke and Dredging International.” Laing O’Rourke Chief Operating Officer Tony Douglas said: “We are delighted to have won the tender to help deliver such a hugely important injection of confidence into the UK economy. We look forward to working closely with DP World in ensuring, together, we create a world-class facility of which we can all be proud.” Dredging International’s CEO, Mr. Alain Bernard, said: “We are honoured and proud to be given this opportunity to participate in this major infrastructure project that will give a substantial and long term boost to the UK economy. Dredging International’s team will deploy the latest equipment to ensure all aspects of the dredge are carried out to meet the UK’s guidelines.” Construction work will begin later this year at the 1,500 acre site, just 25 miles from central London on the former Shell Haven oil refinery at Stanford-le-Hope near Thurrock, South Essex. The logistics park, which will offer 9.5million square feet, is due to open in the latter half of 2010, with the first ships arriving in early 2011.

WAM