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Tag: Logistics Park

Maersk Unveils Middle East’s Largest Logistics Park

Posted on by Will Priestman

A Major Milestone for Maersk and Saudi Arabia

On August 22, 2024, Maersk, the global leader in integrated container logistics, marked a significant achievement by inaugurating its largest logistics park in the Middle East, located at Jeddah Islamic Port, Saudi Arabia. This state-of-the-art facility, sprawling over 225,000 square meters and developed at a cost of $250 million, is a cornerstone of Maersk’s ambitious strategy to bolster its logistics capabilities in the region. It aims to meet the growing demand for efficient, integrated supply chain solutions across the Middle East.

Strategic Location and Comprehensive Services

The park’s location at Jeddah Islamic Port, one of the busiest and most strategically important ports in Saudi Arabia, underscores its critical role in the region’s logistics landscape. The facility is designed to serve as a hub for a wide range of industries, including retail, automotive, technology, and pharmaceuticals. It offers a comprehensive suite of services, from multimodal transportation options to temperature-controlled warehousing, ensuring that businesses can efficiently manage their supply chains from a single, centralized location. The park is also equipped with advanced customs clearance capabilities, which will streamline the movement of goods and reduce lead times, further enhancing the efficiency of regional and global trade.

Sustainability at the Heart of Operations

A defining feature of Maersk’s new logistics park is its strong emphasis on sustainability. In line with the company’s global commitment to reducing its environmental impact, the facility incorporates several eco-friendly initiatives. Notably, 70% of the park’s energy requirements are met through a large solar panel array, significantly reducing its carbon footprint. Additionally, the park employs electric-powered equipment and vehicles for its operations, minimizing emissions and contributing to a greener supply chain. These initiatives are not only beneficial for the environment but also align with global trends towards more sustainable business practices, positioning Maersk as a leader in the green logistics movement.

Supporting Saudi Arabia’s Vision 2030

The opening of this logistics park is closely aligned with Saudi Arabia’s Vision 2030, an ambitious blueprint aimed at diversifying the Kingdom’s economy and reducing its dependency on oil exports. By enhancing the logistical infrastructure at Jeddah Port, Maersk’s facility is set to play a crucial role in facilitating trade, attracting foreign investment, and boosting economic growth in Saudi Arabia. The park is expected to support the development of local industries, create job opportunities, and contribute to the overall modernization of the Kingdom’s logistics sector.

Strategic Importance for Global Trade

As global supply chains continue to evolve, the need for integrated and efficient logistics solutions has never been more critical. Maersk’s new logistics park in Jeddah is a testament to the company’s forward-thinking approach and its commitment to addressing the complex demands of modern logistics. The facility’s strategic location at Jeddah Port, combined with its cutting-edge capabilities, positions it as a key node in the global supply chain, facilitating the seamless movement of goods across the Middle East and beyond.

By establishing the largest logistics park in the Middle East, Maersk is not only reinforcing its presence in the region but also contributing to the broader global trade ecosystem. The Jeddah Islamic Port is already a vital gateway for trade, and with the addition of this advanced logistics facility, it is poised to become an even more critical hub for businesses looking to optimize their supply chains.

The inauguration of Maersk’s logistics park at Jeddah Port marks a significant advancement in the Middle East’s logistical capabilities. This development not only strengthens Saudi Arabia’s position as a regional logistics leader but also underscores Maersk’s commitment to sustainability and innovation in global trade. As the facility begins operations, it is expected to play a pivotal role in driving economic growth, supporting Vision 2030, and enhancing the efficiency of supply chains across the Middle East and beyond.

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Crewless Ships – The Future Takes Shape in Maritime Logistics

Aviation Service Company gets new HQ at Logistics Park

Posted on by Keith McKinley

Global aviation service provider AerFin has announced that it has signed a 10-year lease agreement with St. Modwen Logistics, one of the UK’s leading logistics developers and managers, for a new 115,000 sq ft facility at St. Modwen Park Newport, which will act as the company’s global headquarters from the end of 2024.

The facility offers custom-built space for enhanced aviation aftermarket services activities, including engine disassembly and maintenance, repair and overhaul operations, as well as traditional warehousing and logistics. The agreement doubles AerFin’s engine MRO (maintenance, repair, overhaul) capacity to around 200 quick-turn shop visits per year and expands its UK storage capacity by a third.

Additionally, the c.5,600 sq ft of high-specification office space offers a modern, comfortable environment in which to drive the continued growth of AerFin’s global commercial operations with a superior employee experience that also delivers net zero carbon operations via reduced energy usage.

Earlier this year, Blackstone announced that from July 2024, St. Modwen Logistics’ portfolio of assets will become part of Indurent, a new pure play UK logistics champion. The business will have more than 200 assets totalling 26 million sq ft of logistics space.

Simon Bayliss, Chief Operating Officer at AerFin, commented: “We are pleased to commit to our new, global headquarters, marking a significant milestone in AerFin’s growth story. This move will significantly enhance our operational capacity and position us well for continued expansion. We are collaborating with our selected contractors to ensure the space is fully functional by year-end to allow us to take advantage of the new facility’s unparalleled, advanced features”.

Peter Davies, Senior Development Director at St Modwen Logistics, added: “The growth story of Aerfin from local consultancy to global player in the aviation world is impressive, and we are proud they have chosen St. Modwen Park Newport to base their new global headquarters. AerFin’s arrival is yet another feather in the cap for the park and its growing reputation as an attractive home for big business, with Grade A office space as standard, plus space for both production and distribution operations under one roof.”

Built in line with St. Modwen Logistics’ ‘Swan Standard’ – a holistic set of sustainable development guidelines – AerFin’s new headquarters has been rated as ‘Excellent’ by BREEAM, the certification body for sustainable construction, and comes complete with an EPC A+ rating to demonstrate the building’s energy efficiency.

St. Modwen Logistics Park, Newport

As well as offering 15% roof lights, reducing the need for artificial lighting throughout the day and creating a naturally bright environment for employees, the building also comes complete with 985 sq m of rooftop solar PV as standard, which could lead to savings of up to £59,000 a year.

St. Modwen Park Newport is encouraging a diverse range of fast-growing manufacturing and distribution businesses to the region, providing flexible opportunities to the occupier market within the industrial and logistics sectors and beyond.

The 100-acre business park is strategically located at the gateway to South Wales, around 18 miles from Cardiff and 25 miles from Bristol. Junction 23a of the M4 motorway is within 4 miles via the A4810/Queen’s Way. The estate and surrounding area benefits from the de-tolling of the Severn Bridge, further enhancing its location and access to the South West and Wales.

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St. Modwen Logistics Acquires Distribution Hub

 

Small Businesses Thrive at Logistics Park

Posted on by David Priestman

SEGRO has welcomed three new customers to its logistics park in Rainham, as it continues to meet strong demand for well-located and modern industrial space in East London. The businesses will be located in the development’s Enterprise Quarter which provides industrial space designed to enable small businesses to thrive and grow.

Star Batteries, a newly formed business that provides high quality power units to the automotive industry, has agreed a lease for a 1,115 sq ft unit. The new unit will enable the company to service the East London market. GER Construction, a UK specialist contractor offering mastic sealant and fireproofing services across all construction markets, has also completed a new lease. The 1,119 sq ft. space will be used for the storage of materials and the operation of a trade counter.

Another customer taking space at the Enterprise Quarter is City Removals, a family-run domestic and commercial removal company, which handles business relocations and provides a comprehensive range of storage and packing solutions. It will be using its new 1,639 sq ft unit for storage purposes. Meanwhile, an existing customer, The Goodness Baker, has recently grown at the Enterprise Quarter. The pastry and cakes company currently occupies two units at the Innovation Business Centre, and is taking a third unit. The new space, measuring 3,732 sq ft, which will be used to bake bread products, exemplifies SEGRO’s role as a facilitator for growth.

In line with the company’s Responsible SEGRO commitment to supporting local businesses and communities, SEGRO Park Rainham is part of the company’s East Plus regeneration scheme – a partnership with the Greater London Authority, which will deliver 1.4 million sq ft of modern industrial space, spanning Havering, Newham and Barking & Dagenham and breathing life into previously derelict land.

Colin Chambers, Company Director, at Star Batteries, said: “We are very pleased with our new facility at SEGRO Park Rainham Enterprise Quarter. The ideal location and excellent onsite facilities, coupled with the flexible leases, will provide the right environment for us to grow our business.”

Logistics Park

Bonnie Minshull, Head of London at SEGRO, said: “The Enterprise Quarter at SEGRO Park Rainham is a fantastic base for start-ups and small businesses looking for modern, high-quality facilities that offer wonderful amenities and great customer service to support their growth. A key objective of SEGRO Park Rainham is to provide a variety of different types and sizes of space that are suitable for a range of local businesses. We are proud of the thriving community of business owners and entrepreneurs that is being established at the Enterprise Quarter and look forward to seeing many more success stories in the future.”

SEGRO Park Rainham’s Enterprise Quarter is aimed at start-ups, as it offers flexible leases, additional support services and access to amenities to aid growth. With a range of units and lease options, it also provides customers the option to take up more space as their businesses grow. Split between two developments, Innovation Business Centre, tailored to meet the needs of start-ups, and Enterprise Business Centre, a space that offers slightly larger units for growing SMEs, it offers modern, flexible business, warehouse and industrial space from 549 sq ft to 3,732 sq ft.

DTZ Investors Acquires Logistics Park

Posted on by David Priestman

DTZ Investors has completed the acquisition of Coventry Logistics Park for £140,415,000, one of the highest quality multi-let logistics schemes in the UK.

Coventry Logistics Park comprises three newly constructed logistics units with a total GIA of 784,989 sq. ft on a site extending to 43 acres. The Property is fully let to three tenants; DHL, Geodis and Viad, with a weighted average unexpired lease term (WAULT) of 11.81 years and was fully pre-let during construction. The asset generates a rent of £6,540,132 per annum and is secured against strong tenant covenants with all three leases comprising attractive rent review mechanisms capturing the higher of open market value or CPI index linked increases.

The property has achieved one of the highest BREEAM ‘Outstanding’ ratings in the UK and all three units have A EPC ratings. Other key sustainability credentials include photovoltaic panels situated on all three roofs, air source heat pumps used as the primary source of heating for the warehouse areas, a high provision of electric vehicle charging points and both communal and demised cycle storage across the site. The asset recently won Best Overall Scheme in the Logistics Park category at the IAS Awards 2023.

Coventry Logistics Park is located to the north east of Coventry city centre, a core logistics location within the context of the ‘Golden Triangle’. The site is strategically situated 0.7 miles from Junction 2 of the M6 motorway which provides excellent connectivity to the M69, M42 and M1 motorways. The core nature of the location is supported by the strong tenant line up.

Tom Royston, Director at DTZ Investors commented: “Coventry Logistics Park is a high quality multi-let logistics asset that is well aligned to the fund’s investment strategy. The property benefits from an excellent specification and is market leading in terms of its sustainability credentials. The low average passing rent, in conjunction with reversionary potential and the attractive rent review mechanisms, results in the asset forecast to deliver an attractive risk-adjusted return.”

James Fairweather, Head of Industrial & Logistics Investment at BNP Paribas Real Estate added: “We are delighted to have advised DTZ Investors on this prime logistics transaction which reinforces the desirability of ‘best-in-class’, sustainable, logistics property in a market constricted in supply. Coventry is a premier logistics location as demonstrated by the depth in occupational demand and continued rental growth, particularly for the highest quality units which this property offers.”

BNP Paribas Real Estate advised DTZ Investors on the purchase whilst DTRE acted for Bericote and institutional investors advised by J.P. Morgan Global Alternatives.

New Logistics Park: East Midlands Gateway

Posted on by Keith McKinley

SEGRO has completed a pre-let deal with Maersk, which will see the Danish shipping and logistics company establish a new centre of excellence at SEGRO Logistics Park East Midlands Gateway (SLPEMG).

Maersk will occupy a new 685,000 sq ft warehouse, designed specifically for them, which will complete in June 2023. In alignment with SEGRO’s net-zero 2030 and Maersk’s net-zero 2040 commitments, the unit is being constructed to be net-zero for both embodied and operational carbon. It will incorporate a full roof mounted PV array and extensive use of recycled construction materials. Provisions will also be made for the operation of a fully electric fleet of HGV vehicles in the future. The development expands Maersk’s offering of end-to-end logistics in the UK significantly and is the first bespoke pre-let logistics unit that the company will operate in the country.

SLPEMG is SEGRO’s flagship national big box scheme, a 700-acre development that has delivered over 4.5 million sq.ft. of sustainable logistics workspace. As part of the UK’s only inland freeport, the site incorporates a 50-acre Strategic Rail Freight Interchange (SRFI). Maersk selected SLPEMG as the site most capable of delivering operational excellence for their customers’ needs, with its central strategic location and on-site rail freight terminal providing a direct link to the seaports of Felixstowe, London Gateway and Southampton, amongst others, in order to minimise logistics emissions and significantly reduce on-road freight mileage. The benefits afforded to Maersk’s operation by the East Midlands Freeport further helped the case for choosing SLPEMG.

SEGRO Logistics Park East Midlands Gateway started construction in 2017. The site was initially anticipated to be a 10-year programme, however, occupier demand and leasing success has exceeded expectations, as the last big box plot now been leased.

Andrew Pilsworth, Managing Director, National Logistics, SEGRO, said: “SEGRO Logistics Park East Midlands Gateway is especially attractive to customers like Maersk due to the development’s scale, connectivity and our determination to develop to the highest quality and sustainability standards. The extraordinary pace at which we have delivered this scheme illustrates this. We are very excited to welcome Maersk to SLPEMG and as a new customer. We also welcome the additional employment and economic activity it will bring to the East Midlands, building on the 6,000 jobs already created at SLPEMG.”

Paul Woolass, Head of Logistics and Services Products UK & Ireland, Maersk said: “SEGRO Logistics Park East Midlands Gateway is very much the perfect blueprint for optimising connectivity and flexibility within supply chains. Not only is it ideally positioned in the UK, but the vast infrastructure and cutting-edge technology across the site means operations on UK shores can be done from one place in the most sustainable way possible. It is the epitome of two of Maersk’s key visions for the future: integrating logistics and reaching net-zero emissions by 2040.”

In November, SEGRO launched its Community Investment Plan in the East Midlands, supporting local people with skills, employment, environment and economic investment. The plan is being delivered with its construction partner, customers, suppliers and four local charity partners to undertake a range of projects with the aim of achieving the following outcomes by the end of 2025:

• 5,250 young people will be engaged through a Schools Work Programme
• 300 unemployed people will participate in bespoke skills, and training programmes
• 6 outdoor spaces will be reinvigorated to improve biodiversity and support community wellbeing

The East Midlands Community Investment Plan is a key element of the company’s commitments to boost skills, training and employment in the communities where it operates across the UK and Continental Europe. Already home to a diverse range of customers including Kuehne+Nagel, ShopDirect, Games Workshop, Arvato and DHL, SLPEMG is in proximity to the major cities of Leicester, Derby and Nottingham and other local towns ensuring the park’s customers have access to a strong labour pool.

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