Prologis and the Emirati marine terminal and port operator DP World have teamed up to speculatively build a distribution centre at London Gateway Logistics Park.
The fifty-fifty 316,000sq ft joint venture is being designed to offer the maximum flexibility within its 15-metre height. Ground work on the project — the size of four football pitches — is already underway and the warehouse is expected to be ready for occupation next spring.
“We are delighted to be developing this new unit with DP World at London Gateway Logistics Park,” said Andrew Griffiths, managing director of Prologis UK. “This is the best opportunity in the South East to offer multi-modal connectivity and the park has the potential to offer big cost savings and efficiencies for global supply chains.”
The new development on Europe’s largest distribution park is situated next to the DP World London Gateway Container port, on the north side of the River Thames at Thurrock, which is currently the biggest dock complex of its kind in the UK.
The sprawling complex was specifically sited to be within easy reach of the M25 and has connections to the national rail network. Peter Ward, is commercial director at DP World London Gateway: “This is a unique opportunity that offers many supply chain advantages,” he said. “The location drives down logistics costs as we are closer to the UK’s major areas of consumption than other ports.”
Strong demand has pushed the project forward. The number of jobs it creates will depend on who eventually occupies the building, but it has the potential to bring a further 300 jobs to the park.
Last July, Marks and Spencer announced it would be the first business to set up a distribution hub at London Gateway, bringing with it 800 jobs. If the Prologis-DP World scheme attracts a big enough player the park could well see more than 1,000 new jobs by the end of 2015.
Simon Moore, chief executive at London Gateway, commented: “I am delighted to be able welcome a leading developer of industrial real estate to DP World London Gateway. I’m confident that this partnership will deliver a great development and I’m looking forward to seeing the building work start very soon.”
Analysts see the new partnership as a “logical and progressive evolution” between two of the world’s biggest distribution and freight transportation companies. Prologis owns or co-owns approximately 574m square feet of industrial property across 21 countries. Its 4,700 strong client base includes manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
DP World is based in Dubai and is one of the largest marine terminal operators in the world, operating 60 terminals across six continents. It purchased Peninsular and Oriental Steam Navigation Company (P&O) in 2006 for £3.9bn which, at the time, was the world’s fourth largest port operator. In addition, DP World has 11 new developments and major expansions underway in 10 countries.
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