Heathrow seeks Logistics Hubs sites
Heathrow Airport has launched its search for partner logistics hubs, which will aid in the expansion of the airport.
Airport representatives will tour 65 sites across the UK to help identify potential logistics hub sites, which will contribute to the construction of Britain’s new runway.
Heathrow will be the first major infrastructure project in the UK to pioneer the large-scale use of logistics hubs – aiming to build as much of the project off-site as possible. The hubs will work by pre-assembling components off-site before transporting them in consolidated loads to Heathrow as and when required. This method will boost the project’s efficiency and cut emissions by transporting components to site in fewer lorries.
Research by WPI Economics revealed that integrating an off-site manufacturing supply chain into a major project has the potential to reduce the overall cost of the project by as much as 25% whilst speeding up delivery by up to 30%.
It is hoped that the use of these Logistics Hubs will help mitigate the impacts of construction on communities around Heathrow and spread the economic benefits across the UK. Final sites will not only contribute to building a construction legacy across the UK, but will be part of a productivity boost to construction outside of London worth £30Bn.
The tour of longlisted sites is the latest major milestone in the delivery of Heathrow expansion, coming ahead of an expected Parliamentary vote on the policy framework in the first half of this year.
During the tour, airport representatives will meet the businesses applying to become a key part of the expansion supply chain strategy. The Logistics Hubs will have the opportunity to demonstrate strengths in a range of areas, as Britain’s only hub airport seeks out the best businesses to partner with and deliver Heathrow expansion. Bidders will not only need to illustrate engineering prowess, they will also need to demonstrate a skilled and dedicated workforce, capability to collaborate on the nationwide project and good connectivity allowing output to be easily transported to Heathrow.
These Logistics Hubs are essential in ensuring Heathrow expansion delivers for the whole country by spreading jobs, boosting productivity and modernising the construction industry outside of London and the South East. They will ensure that 60% of procurement spend will be outside of London, spreading the benefits of local investment up and down the country. As well as the direct benefits, new research from WPI Economics shows that, if adopted more widely, the approach could spur growth in off-site construction and lead to a productivity boost worth £30Bn for the industry outside of London by 2025.
Heathrow’s Logistics Hubs feature in the Government’s Industrial Strategy, listed as an example of how to develop skills across the UK and create conditions where successful businesses can emerge. Heathrow has also begun working with other major infrastructure companies to explore how the final sites could be used for future projects.
Lord Deighton, Chairman at Heathrow Airport said: “Heathrow Expansion is a once in a generation opportunity to transform the UK construction industry, build for the future and deliver a lasting skills legacy for future generations. All of this comes at a pivotal time for our country, as it prepares itself to leave the EU and where we need to build for our future in both travel and trade.
“An expanded Heathrow is for all of Britain and the Logistics Hubs are instrumental in our aim to ensure that expansion spreads the huge potential of its £187Bn in economic benefits across the UK, whilst minimising the impact on the airport’s local communities. Off-site construction is an innovative way for these balances to be met and we can’t wait to see for ourselves the opportunity we have in working with the best businesses in the country.”
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