The Dubai-based terminal operator and the British government have reached an impasse after the Transport Secretary condemned the labor practices of its subsidiary, P&O Ferries. In response, DP World has announced the suspension of its planned £1 billion (€1.194 billion) investment in the London Gateway port. The planned expansion was set to increase the port's capacity by 50%, adding two new deep-sea berths and creating hundreds of jobs.
According to Bloomberg, the expansion project, which was due to be announced during an investment summit convened by British Prime Minister Keir Starmer and Chancellor Rachel Reeves, is now under review, according to a source familiar with the matter. The decision comes after Transport Secretary Louise Haigh described P&O Ferries' employment practices as "ruthless" and "exploitative." Following these comments, DP World's Chairman and CEO, Sultan Ahmed bin Sulayem, canceled his participation in the event.
Louise Haigh stated earlier this week that the government is promoting 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 workers" in 2022. According to a British government official cited by Bloomberg, the matter remains under discussion, and no immediate response has been provided by representatives of the involved departments.