Pay as you go portcentric logistics

Following a rigorous selection process, DP World has appointed Import Services to act on its behalf as operator and manager at the Common User Facility (CUF) now being built at London Gateway Logistics Park.

The steelwork for the first phase of the 386,000 sq ft multipurpose cargo handling centre is nearly complete and the development is on target to open in Q2 2015.

Southampton based Import Services will initially take on a significant portion of the new development and provide a menu of logistics services and activities on a ‘pay-as-you-go’ basis. Services will range from basic devanning to cross-docking, storage and value-added activities such as pick-and-pack, labelling, pre-retail and distribution.

"This model has been developed based on market demand that we have identified through extensive research,” said DP World London Gateway head of supply chain Peter Ward. "We identified demand directly from cargo owners for these services. While household retail names have the option to develop their own dedicated buildings on the nine million square foot logistics park, we intend to make sure that the port-centric and market-centric benefits of using London Gateway are accessible to all, irrespective of size, including cargo owners, freight forwarders and 3PLs. However, even the larger operators have recognised the benefits of using the Common User Facility because it enables them to further optimise their supply chain by back-loading into their existing networks.”

DP World London Gateway and Import Services have been working together to develop the fit-out of the CUF building and establish the day-to-day processes such as internal shunting of containers from the port’s quayside to the logistics park.

In a video interview announcing the development, Mike Thomas, client services director, Import Services, said: "This is an exciting new venture for Import Services and we are delighted to be working in partnership with DP World London Gateway. Operating the Common User Facility will enable Import Services to launch a twin port strategy, replicating our port-centric logistics model in Southampton to facilitate growth for both our existing and new clients at DP World London Gateway.”

Import Services specialises in FMCG retail logistics, providing flexible ‘pay as you go’ services that are particularly attractive to SME suppliers to multi-channel retailing. Thomas explains: "Customs Freight Simplified Procedure operations give our clients cash flow advantages with Duty and VAT deferred until their products are sold and despatched to market.

"Our tried and tested distribution networks, including consolidated loads for retail backhauls, will be extended to our new site at London Gateway Logistics Park, unlocking the combined supply chain benefits of both port-centric and market-centric operations."