DP World finalising construction contract
The bidding process for construction of DP World's US$3 billion London Gateway complex has entered its final stages, with three companies competing for the lucrative contract.
The project, which DP World inherited following its acquisition of P&O, involves the development of an 1800-acre oil refinery into a deep sea port and logistics park.
Construction is scheduled to commence before the end of 2008, with either Laing O'Rourke, Costain or Van Oord (in a joint venture with Nuttal) being assigned responsibility for construction.
"DP World is planning to invest around $3 billion to develop London Gateway over a 10 to 15 year timeframe. This represents our long-term commitment to bringing benefits and value to our customers and to the UK economy," said Sultan Ahmed Bin Sulayem, chairman of DP World.
In 2004, Dutch firm Van Oord was involved in the construction of the third Palm Island off the coast of Dubai, a contract which may stand the firm in good stead through its joint venture with Nuttal.
However, Costain also secured a deal from Hutchison Ports last month, believed to be worth around $394 million, to build two berths at Felixstowe container port, a large portfolio which may support the company's bid.