DP WORLD intends to expand its operations at the Port of Southampton in the UK by developing warehouse space to meet the growing demand from British companies seeking to strengthen their supply chains against disruptions in global trade, reports Bloomberg.
DP World country manager Ernst Schulze confirmed that the plan is still in early development, but the company is excited about the possibilities it would offer.
The project would be similar in concept to DP World's two-square mile logistics park adjacent to its London Gateway port facility but smaller.
Since Brexit and the pandemic, the demand for warehousing in the UK has surged, prompting companies to increase inventories and facilitate the flow of foreign-made goods and parts needed for assembly.
According to Colliers, rents for industrial and logistics space in the UK rose 10.4 per cent last year and are projected to increase this year.
XPO Logistics EU president Luis Gomez stated that supply chain costs in the UK have increased much more than in neighboring economies for firms that trade globally.
"Customers are looking to be more autonomous in the UK, having their own warehouses and not relying as much on the flows between the UK and continental Europe," said Mr Gomez.
"There's been a clear lack of driver and space availability, and when there's less availability, the price goes up. That's also something impacting the UK economy."
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