Thursday, October 25, 2018

Rail Freight Group Opens New Logistics Centre in the UK to Handle Steel Cargo

Confidence Post Brexit Spurs Multi Million Pound Investment
Shipping News Feature
UK – German-owned freight operator, DB Cargo UK, has opened its new £6 million steel logistics centre in the West Midlands. Over the past 12 months the company has more than doubled the size of its existing facility in Knowles Road, Wolverhampton, which receives imported steel as rail freight from the Netherlands and Sweden. DB Cargo says it sees the project as a major vote of confidence in the UK's continuing ability to trade and attract inward investment post-Brexit.

The new rail freight centre stands adjacent to the West Coast Mainline, spanning 11,880m2, with the capacity to store some 48,000 tonnes of steel, the equivalent of 3,324 coils. The state-of-the-art logistics facility will be used by some of the world’s biggest steel companies including ArcelorMittal, Tata Steel and SSAB. DB Cargo UK’s Chief Executive Hans-Georg Werner said:

“This is a fantastic investment story for the UK. Despite all the uncertainty over Brexit, here you have a large German-owned company willing to invest significant sums of money that will greatly benefit British and foreign businesses.

“This investment demonstrates DB Cargo UK’s commitment to be the first choice for rail freight in the UK and our confidence in the resilience and sustainability of the international steel market. There is buoyant demand for steel from engineering and manufacturing firms in the area and we are delighted to be in a position to work with our customers to help meet this demand.”

DB Cargo UK, which claims to be the UK’s biggest transporter of metal products, says that its Midlands investment will significantly strengthen the local steel supply chain. The freight operator currently transports steel to the centre by rail from the ports of Immingham, Hull and Boston, where it is then unloaded before being transferred onto HGV’s for final delivery by road. Every train delivery to Wolverhampton will remove an estimated 76 HGV’s from Britain’s roads.