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DP World eyes UK container ascendancy as Felixstowe strike nears

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DP World has laid out its ambitions for a larger slice of the UK’s container traffic on the eve of another strike at Felixstowe.

In a press release marking the 10 millionth container handled at DP World’s London Gateway, the port operator said London Gateway is “likely to be handling up to 30% of the country's containerised trade” within 10 years.

The Port of Felixstowe is owned by Hutchison Ports and is currently the largest container port in the UK, handling around 48% of the UK’s container traffic, and celebrated its 100 millionth container in December 2021.

London Gateway’s 1.8m teu throughput in 2021 compares to Felixstowe’s 3.7m teu.

DP World’s statement of ambition comes as workers at Felixstowe prepare for a second period of industrial action this year, from 27 September to 5 October. Workers are striking over a below-inflation pay offer which the port operator say is fair, while unions say the offer would result in worsening quality of life for its members, and that the port can afford a higher offer.

A strike at Felixstowe earlier this year that began on 21 August was the first in three decades and led to vessel diversions to other UK and European ports.

While the current strikes may benefit DP World, it is no stranger to labour unrest in the UK. DP World-owned P&O Ferries fired 800 seafarers earlier this year without giving notice to those employees or consulting with their unions.

The following disruption left P&O Ferries vessels out of service for months, caused damage to the brand in the UK and led to regulatory reform to protect seafarers. DP World did not escape the negative publicity around P&O Ferries; Unions gathered at DP World’s London offices in April to demand the sacking of P&O Ferries CEO Peter Hebblethwaite.

London Gateway continues to expand and is set to open its fourth berth in 2024 which will expand capacity, along with a second rail terminal.

Ernst Schulze, UK Chief Executive of DP World, said: “After the disruption of recent years, shipping lines and cargo owners are looking for capacity, reliability and growth opportunities. We are providing it, enabling customers to move goods smoothly and efficiently in and out of the UK and across their supply chains.”