Why it matters: The decision by shipping giants Maersk and Hapag-Lloyd to move their Asia-North Europe routes from Felixstowe to London Gateway could signal a significant shift in UK port operations, potentially affecting thousands of local jobs.
The big picture: DP World has invested more than £2.5bn in London Gateway over the past decade, including:
A new £350m all-electric fourth berth
Plans for two more berths
A 9.25 million sq ft logistics park
Creation of 200 new permanent jobs
Meanwhile: Industry experts and campaigners say Suffolk has fallen behind on crucial infrastructure projects, including, but not limited to, the cancelled Ipswich northern bypass, delayed Orwell crossings and ongoing A14 challenges.
What they're saying: "This decision is certainly disappointing news," says Suffolk Chamber of Commerce, calling for "systemic investments" in local infrastructure.
"Whatever the full commercial rationale for Maersk’s relocation to Thames Gateway, it makes it even more important that the rail and road infrastructure in and out of the Port of Felixstowe is the very best it can be to retain and attract businesses, as competition from other ports looks set only to intensify," he added.
Local expert Mark Ling warns: "Suffolk has taken Port of Felixstowe for granted, the 15,000 local jobs in Ipswich and Felixstowe are at threat every time one of the large consortias moves out."
By the numbers:
Felixstowe currently handles more than 4 million TEUs (Twenty-foot Equivalent Units – a measure of container capacity) annually.
London Gateway processed 2.9 million TEUs last year.
London Gateway's new berth adds 1 million TEUs in capacity.
What's next: The changes take effect in February 2024 when the new Gemini Cooperation launches. Maersk will maintain four other shipping services at Felixstowe outside of the Gemini network. These are not affected by the recent announcement, but are not immune to changes in the future.
The Suffolk Chamber of Commerce is conducting a survey of business investment and job creation plans to assess the impact of current transport infrastructure challenges.
The Port of Felixstowe were approached for comment, but have not responded at the time of publication.
