London Gateway go-ahead

Plans for the development of a major new UK container terminal have been revived by DP World. The London Gateway development was put on hold in March last year following the global crisis and was put in further doubt in November when DP World’s parent company Dubai World called for a debt moratorium.

However, the Dubai-based port operator announced it has "reviewed a number of options for the London Gateway project in light of the current market downturn and is pleased to announce it has decided to proceed with construction of essential infrastructure that lays the foundation of the facility".

The company said it has acquired the remaining 1,000 acres of land for the development as well as Shell’s remaining interests in the project for the sum of ₤136m (US$220m).

Construction works – including 3km of land reclamation and a dredging operation in the Thames Estuary –have now begun.

During a site visit to mark the start of the £1.5bn project, UK Prime Minister Gordon Brown said: "I am delighted with the decision to locate this world-class project here in the UK. It will help bring the largest deep sea vessels here and improve the efficiency of the UK’s freight distribution, creating thousands of jobs, future growth and economic prosperity."

Meanwhile, DP World has confirmed it will be floated on the London Stock Exchange by June this year. The company’s Dubai listing has seen a 40% decline in its value to £4.5bn.