Everything from a single source
DP World – transforming itself from a terminal and port operator to a supply chain architect. The trend towards being able to offer as many services as possible can be seen in almost every large transport and logistics company worldwide today. The practical implementation of this strategy adopted by DP World in the United Kingdom was demonstrated to Christian Doepgen by DP World’s UK CEO, Ernst Schulze. His corporation has an answer to many shippers’ desire to be served by a ‘one-stop shop’.
The multitude of crises that have developed recently has highlighted how vulnerable supply chains can be. “The new experience of disruption has made many shippers realise how complex the organisation of the supply chain is today,” Ernst Schulze, the CEO of DP World in the UK, elaborated recently in an interview with the ITJ in London.
Shippers, conversely, now focus more on their core businesses – and want to be provided with all logistics services from a single source. “We’ve created the conditions for this one-stop shop with DP World here in the UK,” Schulze said, adding that “we’re working hard to implement this strategic full-service approach.”
Numerous acquisitions have also paved the way in the UK. The US firm Syncreon, which has been a part of DP World since mid-2021, brought 30 warehouses spread all across the UK into the network. Palletways joined DP World in the same year, followed by Imperial Logistics International in 2022. P & O Ferries and Unifeeder, also part of the portfolio, also underline the group’s potential and ambition.
Becoming a customer-driven company
So what does this approach look like in practice? In one important business field, perishables, 60% of which depends on imports in the UK, the approach can already be seen.
“Thanks to our commitment and effort about 70% of containerised perishables in the UK are now handled by DP World,” Schulze explained, adding that “we’ve got a very strong position here that we are planning to expand further.”
“The strategy has been successful in Jebel Ali; we’re implementing elements of it.”
This includes substantial investment, for example in ripening warehouses for Latin American bananas in London Gateway, from where the fruit, ready for consumption, is transported on by rail. Where do the models come from? “The strategy has been successful in Jebel Ali, and we’re implementing elements of it.”
So what does this strategy mean for the UK? “We’re changing from being an asset-driven to a customer-driven group,” Schulze said, elaborating that this focus won’t result in the expansion of the infrastructure being neglected, however.
Thus the fourth berth in London Gateway will be completed in mid-2024, amongst other measures, and the logistics centre continuously expanded. The company pays particular attention to sustainability.
So DP World recently invested approximately GBP 12 million in equipping the new berth there with eight new e-straddle carriers, for example, which emit 54% less net CO2 than conventional models.
DP World’s Southampton facility even achieved a 55% reduction in CO2 emissions in 2022, after switching to hydrotreated vegetable oil (HVO) as fuel. This commitment to the environment was recognised at the ‘Multimodal Awards’ for UK logistics operators, with DP World named the ‘most sustainable company of the year’ in June.
Schulze added that “further initiatives will follow, for example in our ‘modal shift programme’, which increases the overall attractiveness of intermodal rail transport solutions for customers through financial incentives.”