End-to-end logistics 2.0
How DP World’s intermodal approach in the United Kingdom is setting an example. Shippers tend to strive for integration and for the simplification of their logistics concepts. DP World is developing an answer to this in the United Kingdom, where not only capacities such as the London Gateway terminal are being steadily expanded, but also the services of the numerous subsidiaries are being bundled into a holistic logistics offering.
There aren’t many other regions, speaking globally, in which DP World’s networks are as tightly knit as in the United Kingdom. On the one hand the group covers the entire range of logistics services required, including a digital platform, thanks also to the players it has acquired in recent years, including P & O Ferrymasters, Unifeeder, syncreon, Palletways and Imperial. And on the other hand the port and terminal operator sets a shining example in its core field with the ongoing expansion of its London Gateway terminal.
“The London skyline is our backdrop here,” Ernst Schulze said, proudly underlining the facility’s advantageous location, just under 30 km from London’s city limits. “Together with our sister companies we have all the transport options we need to supply the 15 million consumers in the south of England,” he continued.
The terminal, which has been operational since 2013, is largely automated, so that handling times per lorry in 28 lanes and 128 loading bays is a mere 30 minutes. Operations are very intense, making it easy to understand why a fourth berth is set to be added in 2024.
Another advantage London Gateway offers is its adjacent logistics zone, as well as further areas nearby. In addition to major tenants, including Ranson, the Oasis Group, Ziegler and Halo, DP World runs its own warehouse there too.
The 7,000 pallet slots available were expanded to 11,000 in August 2023 through the addition of high-bay warehouses. They’re also in action every Saturday, on account of high demand.
A holistic model
“Clients increasingly expect a one-stop shop,” explains Jonathan Himsworth, DP World’s vice-president in charge of sales and account management. He also highlights that, at the executive management level, “shippers once again see logistics services as a competitive factor.” DP World’s clients drive its holistic approach.
Himsworth believes that DP World can cover a wider range of services across industry verticals. He’s also observed a change in clients’ expectations, however. “Today sales is consultative work. It’s all about finding the best possible comprehensive solution.”
This can mean that goods are unloaded in London Gateway, for example, handled in the company’s own warehouse on site there and then distributed to centres in the ‘Golden Triangle’ in the Midlands, from where, for example, members of the Palletways network handle the last mile.
“Wherever possible, we bring in the railways,” says Himsworth, underlining the intermodal approach and confirming that shippers are increasingly interested in reducing their environmental footprint. The solutions are such that shippers who had turned their backs on the island after Brexit are now planning their own logistics solutions again.
Technology has a key role to play in the development of this model. Robots are in action in many of DPW’s hundreds of contract logistics centres, for example 83 Locus robots in Bicester, Oxfordshire. “It’s unthinkable to make a relocation or a new warehousing solution today without the input of our logistics engineers” Himsworth explained. The UK model is expected to set the pace for DP World globally.