DP World's $3bn UK project agreed

Dubai-based ports operator DP World has been given the green light to build a $2.96 billion port and logistics Park on the banks of the River Thames in southeast England.

The London Gateway project, which DP inherited with its acquisition of P&O last year, will see a 1,500 acre former oil refinery site in Shell Haven, Essex, developed into a deep sea port and business park.

UK Transport Minister Gillian Merron announced the final approval of the London Gateway development today. “It has taken time to finalise this decision. But it was right to consider carefully, and make appropriate provision for, the significant impacts that this major development will have in the growth area,” she said.

"DP World is planning to invest approximately £1.5 billion to develop London Gateway over a 10 to 15 year timeframe," said Sultan Ahmed Bin Sulayem, chairman of DP World. "This is the single biggest investment project for DP World. It represents our long-term commitment to bringing benefits and value to our customers and to the UK economy

DP World claims the project will create 14,000 new jobs. Construction is scheduled to begin later this year, with the port operational in 2010 and the business park ready for its first tenants in 12-18 months.

London Gateway Port will be built on part of the site of the former Shell Haven oil refinery in Thurrock, Essex. Land will also be reclaimed from the Thames estuary to help form the port. DP World's plans include a 2,300 metre long container quay with a fully-developed capacity of 3.5 million standard container units a year.

Final approval of the project follows a long battle between P&O to develop the site, including a public inquiry and a number of amendments to the original plans, in addition to measures to cope with extra road traffic.

DP World brought P&O last year for $6.8 billion. The acquisition of six US ports through the deal caused uproar in the US over perceived security concerns.

DP World later sold the six ports to AIG Global Investment Group to quell the controversy.

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