The UK Government remains ‘minded’ on approving DP World’s London Gateway projects in Essex, it told the company.

The London Gateway port and park projects involve the construction of a world-class port and the UK’s largest logistics and business park – all on a brownfield site within close proximity to London and the major markets in the Southeast.  It will be developed at Shell Haven, a 1,500-acre site in Thurrock, Essex.  As previously estimated, DP World believes the cost of development on the site is likely to be approximately £1.5bn, to be invested over a 10- to 15-year development timeframe. 
DP World said the Government restated in a communication it sent to the company that there was a national need for the additional port capacity that London Gateway would provide and made clear its desire to arrive at a final decision “as swiftly as possible.”
“This is important news and we are delighted with the UK Government’s continued support.  London Gateway is unique because of its scale and location,” said Sultan Ahmed Bin Sulayem, chairman DP World.
Mohammed Sharaf, CEO of DP World, said the London Gateway was a compelling factor in the company’s acquisition of P&O, as it had already identified the potential of the projects in the heart of one of Europe’s largest consumer economies. 
“DP World has significant global experience of precisely this type of development, and of this size and scale.  We are ideally placed to ensure the success of the projects, and to deliver the benefits to our customers, businesses in the UK and to the local community alike.”
Simon Moore, chief executive of London Gateway, said the communication resolved a number of previously outstanding issues and clearly moved the projects a step forward.
“With our partner, Shell, and the relevant third parties we will now begin work immediately on those considerations which have been detailed in the communications so that we can secure final approval and progress these exciting projects.  We are looking forward to playing our part within the local community and delivering a significant contribution to the Government’s wider Thames Gateway regeneration programme. 
“The development of London Gateway will meet an identified national need, as reconfirmed by the Government in this communication, and allow the UK to continue to attract the largest vessels in the world, thereby keeping the UK directly connected with global trading partners, as well as providing increased choice to the market.”
In other DP World news, the company said it was set to expand significantly in Argentina, investing $100 million to upgrade facilities at Buenos Aires port. It would also look at investing in a new mega port and developing three free zones in the country. 
Work on the expansion of DP World’s premier P&O terminal at Vancouver on the North American continent will be completed this month (September), making it 40 per cent larger than it is now.  Existing facilities include logistics and warehousing.
On the Asian front, DP World is investing $211 million for building a second container terminal at Pakistan’s Port Qasim in Karachi.
In 2005, the terminals operated by DP World handled around 13 million teu.