The Dubai-based company and the British government have reached an impasse after the Transport Secretary criticized P&O Ferries' labor practices. As a result, DP World announced the halt of its £1 billion (€1.194 billion) investment planned for London Gateway port. The expansion was expected to increase the port’s capacity by 50%, adding two new deep-sea berths and creating hundreds of jobs.
Bloomberg reports that the expansion project, which was set to be announced during an investment summit hosted by UK Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves, is now under review, according to a source familiar with the matter. The decision follows comments from Transport Secretary Louise Haigh, who described P&O Ferries' labor practices as "unscrupulous" and "exploitative." In response to these remarks, DP World's Chairman and CEO, Sultan Ahmed bin Sulayem, cancelled his attendance at the event.
Earlier this week, Louise Haigh stated that the government is pushing legislation in Parliament to close a "legal loophole that P&O Ferries exploited when it fired nearly 800 dedicated seafarers and replaced them with low-cost labor" in 2022. According to a UK government official quoted by Bloomberg, the issue remains under discussion, with no immediate response from the relevant departments.
