Out-of-town superstores may have had their moment in the sun, but it’s now the turn of the mega-port. Gone are the days of the odd ro-ro vessel landing at a single berth – the trend for huge super-ships has led to longer quays, bigger berths and deeper ports, while the proliferation of multi-packaging and multi-channel formats driven by convenience, and the ever-present need to cut costs, has led to a new era in integrated logistics.
Across the UK, ports including Dover, Tilbury, Felixstowe and DP World London Gateway are investing huge amounts of money in expanding not only port-side services, but integrated ‘logistics parks’ that aim to shorten the supply chain and offer packing and processing services linked to sea and rail freight.
The Port of Dover’s Western Docks Revival (WDR) is one such project, which is seeking to revitalise the town as a seaside destination, alongside an ambitious move for the port’s cargo business from the east to west docks, and the development of a port-side logistics site. Dover currently handles 25 per cent of the UK’s banana imports in a cargo operation run by shipping company George Hammond. The new development will see the entire cargo business move to the western docks, leaving more space in the eastern docks for freight holding – part of a major new traffic management plan.
Handling over half of cross-channel freight, a key part of Dover’s responsibility is to keep huge volumes of traffic moving. This isn’t a long-winded static container unloading operation – Dover’s strategy is all about fluidity, explains head of communications Richard Christian, which will be boosted by the 4km of extra freight holding space the port is developing.
Under scrutiny throughout the summer due to the escalating migrant numbers at Calais, Dover’s strategic importance was emphasised as it alone remained open where Eurotunnel and Calais were forced to shut – a crucial cog in the vast cross-channel traffic.
Christian says the port is confident it can attract the market when the new development is ready – two new and expanded berths at the western docks will double Dover’s freight capacity, and will mainly handle reefer cargo, while the logistics park opens doors for UK exports. “Growth will come from increased volumes on existing routes, and looking at capacity on back routes. There are possibilities for exports from Kent as a big fruit-producing region,” he says.
While Dover keeps things moving, deep sea container port DP World London Gateway has its sights set further afield by developing long-haul fresh produce business links. Already established with routes from South America, Africa and the Caribbean, communications officer Matt Abbott says an Asia-Europe service is “the big commercial goal”. “Fresh produce is a very important part of our business – Del Monte is one of our biggest companies. We are always looking for new customers – we’re constantly looking to increase volumes and attract trade from all over the world,” he says.
With a massive £1.5 billion investment from parent company DP World, the port is set to open its third deep-sea berth in mid 2016, and will have a total of six by the time it is fully-built. In addition, Abbott stresses the potential for suppliers from the port’s adjoining logistics site. “The first warehouse on the logistics park opened in May of this year and is being run by an import services company. We have a further nine million sq ft of consented development space on 560 acres, with one fresh produce company interested.
“We would welcome speaking to absolutely anyone about the possibilities we have at the logistics park. We are in a very good position – this is the largest development space in the UK, only 25 miles from central London,” he adds.
With impressive financial clout behind it, the DP World investment is the ultimate mega-port, but it faces competition from others who are also latching onto the idea of an integrated logistics network.
The Port of Felixstowe says it already handles 44 per cent of all UK containerised trade and its expansion and new food examination facilities are signs it is ambitious for more growth, while it has also announced a new 1.4m sq ft Logistics Park.
Meanwhile, Tilbury boasts it can offer “end-to-end temperature controlled supply chain solutions” through its new 230,000 sq ft site, due to open in February 2016, alongside yet another new logistics centre.
“The new port-centric logistics centre offers significant benefits to customers, including reduced costs, lead times, food miles and emissions,” explains Tilbury’s business development manager, Alan Hibbard.
So what’s behind the trend for an all-in-one logistics solution? According to sales and marketing director of logistics firm Fowler Welch, Richard Slater, it’s an inevitable response to consumer demand for multi-channel and mult-format offerings, which puts strain on smaller companies. “We all have to accept that routes to market are more varied than ever and the high levels of consumer loyalty are a thing of the past; we have to ensure we have supply chain solutions that are therefore flexible and responsive,” he says.
It’s clearly not just retailers who are having to adapt to the public demand for convenience, the logistics and supply chain service industry is also changing shape to better fit the needs of a versatile and price-driven produce industry of the future.
Fowler Welch and DPS partner up
A new logistics JV between supply chain firm Fowler Welch and produce supplier DPS was set up to serve Tesco through shorter supply routes at a reduced cost.
The new project – named Integrated Service Solutions (ISS) – currently generates income of over £8 million and has expanded to supply a number of retailers.
The vision is to create a “scaleable, centralised site for the packing of added-value produce in the south of England”, says Fowler Welch’s Richard Slater. The company has invested £4m at its distribution centre in Teynham, Kent, and is currently investing a further £6m to expand the site and double the capacity.
“The strategy behind the ISS project was cost eradication and establishing an independent industry-leading service provision,” says Slater. “The project aimed to offer an innovative, industry-leading approach to supply chains with the added benefit of adding another service and revenue stream to both businesses.”
Dover freight drives on despite paris security alert
After successfully navigating a summer of disruption caused by growing migrant numbers at Calais, Dover freight traffic is once again facing delays from increased security checks following the recent Paris terror attacks.
“We are having to respond to a security situation. There are some delays in the port at the moment,” says head of communications, Richard Christian, who is justifiably proud that the port stayed open throughout the “unprecedented” summer disruption. Despite the delayed orders and risk of contamination from migrant stowaways, Christian says there was one positive outcome from summer: “Ports don’t have the profile they should – people say we’re an island nation but we don’t see that through the level of attention ports get. One positive outcome was the increased awareness of the importance of ports in the media and government – the minister for transport even came down to visit, and in last week’s budget there was £250 million of funding announced to alleviate the pressures from Operation Stack,” he explains. “Over the summer people asked if there were any other ports that freight traffic could use – but in reality there is no substitute for the capacity we handle.”
But some ferry operators said they had seen substantial increase in volumes to ports in eastern England during the summer. A spokesperson for Felixstowe says: “The volume of traffic on the ferry services has shown good growth in 2015. In response, the operator, DFDS, has increased the number of weekly sailings on the route and is increasing the size of vessels used. We assume it is linked to disruption at Calais but are unable to confirm that definitively.”
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