Dubai Ports World, the third-largest container port operator, said on Saturday it will invest 1.5 billion pounds ($2.87 billion) developing a harbour complex in south-east Britain to plug a capacity shortfall.
DP World, which in February paid $6.8 billion for British ports operator P&0, will develop the port and a business park as part of the London Gateway Project at Thurrock, Essex, state-owned Dubai World, the owner of DP World, said in a statement.
"The UK is suffering from a capacity shortage," DP World Chairman Sultan Ahmed bin Sulayem told Reuters. Through its P&O purchase, DP World already operates ports at Southampton and Tilbury.
The plans at Thurrock, east of London, include a quay big enough to handle 3.5 million containers a year, Dubai World said. DP World would begin construction as early as next month after winning government approval, DP World Chief Executive Mohammad Sharaf told Reuters. "It will be the closest port to (London) and the Olympics coming in 2012 will further put pressure on capacity," Sharaf said. DP World will buy the necessary land, formerly the site of an oil refinery, from Royal Dutch Shell for an undisclosed amount.