London’s port expansion and volume aspirations

A video in the Financial Times (June 11, 2013) describes the expansion of London’s port by Dubai based DP World. The new port is claimed to be the largest logistics park in Europe and appropriate for the UK, given that 90% of its world trade comes by sea. The 10 year old project is expected to enable competitive logistics for goods coming to Europe from Asia, particularly when combined with the warehousing and value added capability available on site. However, given the expansion at Rotterdam, proposed inland multi-modal ports in Turkey, and other ports across Europe, will this new capacity result in price pressure across all ports due to overcapacity in Europe ? Will the slowing European economy result in decreased trade and thus added pressure ? Will the private ownership of the port impact its success because it alleviates the pressure on the British government to take actions to ensure its profitability ? Will the proposed new airport to handle cargo etc be a necessary component for its success ?

About aviyer2010

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