Freeports in the world today are an engine of development

Ports operator DP World is poised to expand its vast London Gateway container terminal in Essex now that political uncertainty is in the rear-view mirror, its chief ­executive said.

The firm is poised to award a major contract to build at least one new container shipping berth, Sultan Ahmed bin Sulayem said – adding to the three existing ones at the Thurrock site, which has capacity for six.

DP World has a network of more than 80 terminals around the world, handling 15pc of the world’s container shipping traffic.

It has invested over £1.5bn already in the UK, including the London Gateway, which first opened in 2010. Mr Sulayem delayed the expansion plans last autumn. He said that firms had been reluctant to bid for the contract before the Brexit impasse was resolved, “but now it is OK”.

“Freeports in the world today are an engine of development. The biggest problem for business is changes in government policy, but with freeports or a special economic zone, those risks are removed.”

A fourth berth would allow the Gateway to handle around 3.5m containers a year, up from around 2m, and taking it within range of Felixstowe, the UK’s largest container port.

UK firms are in the running for the contract, which is at the tender stage. Mr ­Sulayem said: “I am sure they will start this year.”

The ports chief also gave strong support for Boris Johnson’s policy of establishing 10 new low tax, low regulation free ports as a “benefit” of leaving the EU.

He said: “It was music to my ears when I heard it.”

“The ports chief also gave strong support for Boris Johnson’s policy of establishing 10 new low tax, low regulation free ports as a ‘benefit’ of leaving the EU”

Legislation allowing free ports lapsed in 2012 and the EU has opposed them because of fears over state-backed competition with conventional ports.

But Mr Sulayem said: “Freeports in the world today are an engine of development. The biggest problem for business is changes in government policy, but with freeports or a special economic zone, those risks are removed.”

Source: The Telegraph