London Gateway shrugs off loss of M&S distribution centre
Source:cargonewsasia 2014-5-22 10:03:00
The London Gateway port insisted that there was still "huge momentum" around the Essex facility despite the blow of prize client, retailer Marks & Spencer, abandoning plans to build a new US337 million distribution centre on the site.
The flagship M&S investment was announced last June with a visit from the Prime Minister, David Cameron, and promised to bring 700 jobs, reported The Guardian.
The cost of developing the adjacent step in the London Gateway supply chain will now be borne solely by the port owners, DP World, with no other clients yet confirmed to move into a facility touted as creating huge efficiencies in UK logistics.
M&S's financial director Alan Stewart said the firm would save $219 million by changing tack, admitting that they "couldn't deliver London Gateway in the timeframe".
He added: "The site development wasn't as speedy and the planning consent went on a lot longer."
London Gateway will be pressing ahead in building its own common user facility at the logistics park, to be leased out when new clients are found.
A spokesman said: "We continue to be a port of choice for M&S and we will keep moving forward with them to support their business development objectives and reduce their supply costs.’’
The state of the art deepwater port, designed to accommodate super-sized container ships, is now seeing up to six ships a week arrive in its two berths, after opening in late 2013.