London Gateway 'a massive threat' to Felixstowe

A senior executive at the UK port of Felixtowe has warned that it will face its “biggest threat in years” when the rival London Gateway terminal opens next year.

Referring to the “changing competitive landscape on the horizon”, Hutchison Ports (UK) Port Development Director Andrew Harston told guests at Felixstowe’s community reception that DP World’s new container port had taken “a very major step towards becoming a reality” with the announcement that contracts had been let and an opening was planned in the fourth quarter of 2013.

He said: “London Gateway will be the biggest threat that we have seen to our business for many, many years and we are going to have to look very closely at everything we do to ensure that we are providing port users with the best possible service.

“If we do this, we can limit the impact on the port and the local economy – but we shouldn’t fool ourselves that it will be easy.”

He said: “We can do it, though. We are better located, closer to the main shipping lanes, have better rail connections than they will be able to offer and we don’t need to navigate the M25 to get everywhere.”

However, he said, what DP World would have “in spades” and where Felixstowe was “comparatively weak”, was warehousing and logistics facilities near the port.

“We shouldn’t sell ourselves short – we have a lot to offer port users – but this is an area we need to look at.”

On a positive note, Felixstowe remained very committed to developing its business and this year would push ahead with the construction of another new rail terminal on the port, said Harston.

The New North Rail Terminal will be located behind Trinity Terminal and the first in the UK designed to handle longer, 30-wagon trains.

Felixstowe remains the UK’s largest container port and its new deepwater Berths 8 & 9, officially opened last September, also put the port in a good position to compete for traffic into the future, he added.