DP World’s £1 Billion UK Investment Moves Forward Amid Diplomatic Repairs Post-Boycott Call

P&O Ferries' parent company confirms £1 billion UK investment will proceed, despite the transport secretary advocating for a boycott of the maritime company. Earlier, Sky News reported that the investment was being reconsidered and that DP World, owned by Dubai, had its chairman Sultan Ahmed bin Sulayem withdraw from a London investment conference after facing criticism from government minister Louise Haigh.

Business reporter @pkelso

Saturday, October 12, 2024, 6:

A planned £1 billion investment in the UK by port operator DP World will proceed as intended, following intense efforts by government officials and diplomats to mend ties after a dispute with the Dubai-owned conglomerate risked undermining a key investment summit.

On Friday, according to Sky News, the proposed investment is being reconsidered, and DP World's chairman, Sultan Ahmed bin Sulayem, has scrapped his plans to participate in the summit. This decision comes in the wake of negative remarks from ministers directed at P&O Ferries, which is a subsidiary of DP World.

On Wednesday, Louise Haigh, the Transport Secretary, labeled P&O Ferries as a "rogue operator" following their abrupt dismissal of 800 seafarers in March 2022, and urged the public to boycott the company.

Her remarks greatly upset the executives at DP World just as they were about to finalize a £1 billion investment in the London Gateway container port, which was scheduled to align with the summit.

In an effort to rectify the circumstances, Sir Keir Starmer publicly reprimanded Ms. Haigh, stating that her opinions were not endorsed by the government. It is believed that representatives from both Downing Street and the Foreign Office have taken steps to mend the strained relations.

DP World has informed Sky News that Mr. bin Sulayem plans to be present at the event in London, and it is expected that the investment will proceed as scheduled, following a dispute with government officials that cast uncertainty on this key announcement.

A representative from DP World communicated to Sky News: "After productive and encouraging talks with the government, we have received the necessary guidance. We are eager to take part in the upcoming International Investment Summit on Monday."

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Mr. bin Sulayem is anticipated to have a meeting with the Prime Minister of the UK, potentially occurring by Sunday, coinciding with a reception in central London where delegates will assemble.

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The expansion at London Gateway involves the construction of two additional berths, increasing the total to six, along with a new rail terminal. The port, which currently handles nearly two million containers annually, will see its capacity double. It is anticipated to be the largest port in the UK by volume in the next five years.

The financial commitment is anticipated to generate 400 new full-time positions, supplementing the existing workforce of 1,200 at London Gateway. This will raise the total investment in the facility located on the Thames Estuary in Essex, close to the village of Corringham, to over £3 billion.

Adjacent to the port, where a Shell oil refinery once operated, a logistics park has been established, providing jobs for 1,500 individuals.

DP World operates ports and logistics facilities across over 60 nations, amassing worldwide earnings close to £14 billion in the previous year.

A spokesperson for the government stated: "DP World's financial commitment to the UK underscores the government's stability and credibility. We are pleased with the employment and prospects this investment will generate."

"In collaboration with global businesses and investors, the government is tapping into the UK's capabilities and aspirations. The upcoming international investment summit will demonstrate that Britain is ready to engage in business globally once more."

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