(Updates with company comment in fourth paragraph.)
Oct. 4 (Bloomberg) -- DP World Ltd., Dubai’s state- controlled port operator, said its London Gateway deep-sea port will begin operating by the fourth quarter of 2013.
The project, on the Thames river about 25 miles (40 kilometers) east of London and adjacent to a logistics park, will have capacity for 1.6 million 20-foot containers, the company said in a statement today. DP World, which has planned to invest 1.5 billion pounds ($2.3 billion) in the port, said it will spend $1 billion on the project in the next three years.
DP World, the world’s fourth-largest port operator, is dredging about 106 million cubic feet (3.2 million cubic meters) to accommodate the world’s biggest ships at London Gateway. The company aims to win clients by combining a harbor terminal with an on-site distribution center, luring wholesalers and retailers away from older ports such as Hutchison Whampoa Ltd.’s terminal in Felixstowe, about 50 miles northeast.
“London Gateway is located closer to the U.K.’s largest consumer markets of London and the southeast, ensuring that U.K. business will soon be able to take advantage of a more cost- effective way of getting the nation’s goods to consumers,” DP World said in the statement today.
DP World inherited London Gateway when it bought Peninsular & Oriental Steam Navigation Co., at the time the U.K.’s biggest port operator, in 2006. The purchase also gave it stakes in container terminals at Southampton, England, the U.K.’s second- largest port, and Tilbury on the River Thames, the distribution hub for the London 2012 Olympic Games.
--Editors: Tom Lavell, Robert Valpuesta
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