DP World’s planned container hub on the river Thames near London is facing renewed uncertainty amid reports of financing problems for the Dubai firm’s flagship project.

The London Gateway terminal “will not be viable without suitable
government funding,” according to a UK government funding application
from the local authority in the region where the planned 3.5 million
containers-a-year facility would be built.

DP World put the $2.5 billion project “under review” in March because of the downturn in global container shipping.

London Gateway has faced difficulty raising bank financing for $665
million of upfront infrastructure investment, Thurrock Council said in
its application for central government permission to raise funds for
the project.

“Bank interest in London Gateway is either very limited, or on terms …
which will severely impact DP World’s equity returns, making the
project even more unattractive,” Thurrock Council said.

The European Investment Bank, the European Union’s long term lending
arm, recently approved nearly $500 million of loans for London Gateway
linked to the entire project rather than the terminal infrastructure.

DP World inherited London Gateway, due to be built on the site of a
mothballed Shell oil refinery, in its $6.5 billion acquisition of the
UK’s P&O Ports in 2006.

The world’s fourth largest terminal operator is not included in its
parent Dubai World’s request last week for a six month standstill on
servicing $26 billion of debt.

Source: Journal of Commerce

Search to find what you want

• The construction of the London Gateway port starts

    Port operator DP World has committed itself to the foundation stage of its London Gateway project, despite the market downturn. Dredging work will begin next month. Read at Construction of London Gateway Port begins

• Funding for London Gateway Uganda central corridor / NYK French-Malaysian partnership and the Maldives Port Project

    In today’s media watch: London Gateway gets funding for dredging; Uganda developing central corridor route to sea; NYK Group state no need for extra terminal capacity until next decade; Port Klang and Marseilles Fos sign MoU to boost joint exploration; $4.8 million project to develop the Malé North Harbour. Read at

• DP World, to go ahead London Gateway

    Port operator DP World DPW.DI will go ahead with the foundation stage of its postponed London Gateway project despite the market downturn, it said on Monday.

• Major work begins at London Gateway Port

    Major work starts today at DP World London Gateway, the UKâ??s new deep sea port and logistics park, situated 25 miles east of Central London on the River Thames. To mark the occasion, Shahid Malik MP, Parliamentary Under Secretary of State in the Department for Communities and Local Government, is

• Dubai British port u0026quot

    In what may be seen as a controversial move, Thurrock Council in Essex has offered funding support for a key part of the Dubai group’s London Gateway port project, which aims to handle 3.5m containers a year and directly create 12,000 jobs. The new port, close to Canvey Island, is

• DP World starts work on the Thames deep-water port

    A giant dredger will begin construction tomorrow of the first deep-sea port in Britain for 25 years, designed to receive the biggest container ships from the Far East. DP World, the port’s owner, says that the new wharf on the Thames Estuary will be big enough to berth six of

• DP World starts work on the Thames deep-water port

    A giant dredger will begin construction tomorrow of the first deep-sea port in Britain for 25 years, designed to receive the biggest container ships from the Far East. DP World, the port’s owner, says that the new wharf on the Thames Estuary will be big enough to berth six of

• Red Sea Gateway Terminal successfully implemented Navis Sparcs N4

    Red Sea Gateway Terminal (RSGT) the new grass route container terminal at Jeddah Islamic Port, has confirmed its deployment of its terminal operating system (TOS), indicating that all software has successfully passed operational testing, as it gets ready to receive its first commercial vessel in Dec 2009. Choosing the leading

• Delta Port Container Terminal opened in third berth

    The third berth at the Deltaport container terminal in Roberts Bank opened for business Monday, sporting the latest cranes that will not only accommodate the largest container ships in the world, but even larger ones that haven’t yet been built. The two-year, $400-million project increases the container terminal’s capacity by

• UK North West Development Agency in 2010 Ocean Gateway includes regional strategic plan

    It has emerged the North West Development Agency has included the £50bn Atlantic Gateway vision for the River Mersey and Manchester Ship Canal within their 2010 regional strategy plan. Read at UK North West Development Agency includes ocean gateway in 2010 regional strategy plan

• Nehru delays Box Berth Extension

    India’s Port of Jawaharlal Nehru cancelled a global tender to develop its planned 330-meter container berth extension project, originally estimated to cost $130 million. The decision was attributed by local shipping circles to a rather lukewarm response from potential bidders, amid slumping container volumes at Indian ports that saw throughput

• Nehru container Fell 8 percent in 2009

    Container throughput at India’s Port of Jawaharlal Nehru dropped by 8 percent in 2009 compared with the previous year as the slump in trade hit cargo volume moving through the country’s largest container gateway. The west coast hub handled 3.8 million 20-foot equivalent units during the year, down from 4.17

• London Mining expects financing for Saudi Iron Ore Mine in 2010

    A bankable feasibility study (BFS) on the Wadi Sawawin iron-ore project in Saudi Arabia has indicated that the operation would be feasible at either five-million tons or ten-million tons a year, London Mining said. Financing for the mining will get under way next year, and is expected to be in

• DP World to seek London listing

     DP World, the container port business owned by troubled investment group Dubai World, is to seek a share listing on the London Stock Exchange. The planned listing would be the second for DP World, which has been a member of the Dubai Stock Exchange since 2007. The firm, which owns

• EUs 500 million spent in ports

    The European Community (EC) has announced details of a first tranche of transport infrastructure projects aimed at streamlining shipping connections across EU member countries and links with its near neighbours. Quoting an official statement, LR-Fairplay said the €500 million (Us$750 million) package was a vital part of efforts to stimulate