Consultants say Felixstowe will be cheaper than London Gateway

Due to open in November 2013, London Gateway has made much of locating a shipping terminal and adjacent business park so close to London but Felixstowe, the UK’s busiest container port, which handled 42% of total UK container traffic last year, contends it is still a more cost-effective option — a position backed by the study.

The consultants found that “considering both inland and maritime costs together, Felixstowe has an overall cost advantage of £26 (US$40) per container”.

The consultants said “the inland distribution of import cargoes is based upon the location of large warehouses and not population”, with most of the big warehouses located in the Midlands or the North. London is effectively served via warehouses that themselves can lie up to 200km north of the capital” MDS found, adding that the new port faced extra costs from road congestion around the capital.