Setting great store in the UK’s trading future

As the Financial Times have recently highlighted, turmoil in Europe and the aftershocks of the past two years continue to impact business worldwide.

Add to all this the rising cost of living and it is clear to see why there is talk in British boardrooms – and at kitchen tables – about what solutions can be put in place to keep supply chains flowing.

Clearly, what businesses – and their loyal customers – need is a solution that offers resilience and cost effectiveness; a way of keeping trade on the move and costs low.

Hence why many companies are pinning their hopes on supply chain integration in the form of port-centric logistics warehouses – and the certainty that these can bring to the supply chain.

While only one link in an integrated supply chain, port-centric warehouses can offer a quick-fix to companies seeking resilient supply lines.

Taking stock

These vast storage and distribution units have the capacity to store tonnes of products and materials and are vital for the movement of goods from factory floor to customer door.

Plus, as the logistics experts at global commercial real estate firm Cushman & Wakefield recently pointed out, in the context of the UK, warehouses allow foreign businesses to be closer to their British customers. Having that local presence gives them a competitive edge.

The main benefit of supply chain integration through port-centric warehouses, however, is that a business can stockpile its inventory near key transport links rather than solely relying on just-in-time delivery models to get goods from A to B.

These facilities reap the benefits of being nearby diverse transport links – road, sea, and rail – to move products onto the next stage of their journey.

In short, port-centric warehousing offers supply chain certainty.

This all makes a lot of sense – especially as more and more businesses seek to meet rising demands and shorter delivery expectations.

And as we saw in the most recent edition of Trade in Transition, DP World ’s flagship research in partnership with Economist Impact , more than 50% of businesses worldwide are moving to have more than two weeks’ buffer of inventory. With businesses retooling their supply chains to move away from just-in-time, they’re looking for space to maintain their inventories.

This also reflects why demand for warehousing in the UK is at an all-time high. However, finding good quality port-centric warehousing has proven to be a challenge for some businesses.

The sheer number of businesses on the look for new port-centric warehouse space is what has inspired DP World’s team at London Gateway to develop speculatively over 119,000 square foot of sustainable warehouse space in the heart of our Logistics Park – a smart trade zone over 400 football pitches in size offering customers an opportunity for closer supply chain integration near one of the UK’s largest ports.

Greatness in store

In light of demand, we are planning this storage development speculatively. We can see the impact the past few years have had on businesses at a local level across the world and by expanding the warehousing space at our Logistics Parks we can play our part in keeping Britain’s trade flowing.

When building London Gateway, we planned for it to be a port-centric logistics hub for the South East of England, streamlining the movement of goods as they come to the UK – bypassing the Midlands and being closer to Europe’s largest city: London. In 2022 alone we have welcomed three new customers to our Logistics Park.

With this latest speculative warehouse development, we are not only expanding the space and infrastructure at our disposal – but providing our customers with the tools to remain resilient and grow as well.

Our new warehouse will sit immediately beside our deep-water port and only 28 miles from Central London, allowing businesses who use it can cut transport costs between ports, distribution centres, and beyond. It also has outstanding road links and direct access to our onsite national and international rail terminal.

And because it is being speculatively built, it will be operational faster – giving the future tenant a sooner move-in date.

Our work at London Gateway continues to transform trade for the UK – putting us at the heart of Britain’s trading future. I look forward to seeing how this latest development can support our future tenants to build resilience through integrating their supply chains.