British Steel's Heathrow expansion ambition to be spelled out to airport executives

By Scunthorpe Telegraph | Posted: 4 May 2018

FULL COVERAGE OF THE VISIT: 'British Steel Heathrow hub: 'What an opportuntty to land'

Heathrow executives were landing at British Steel today as they look at the potential for logistics hubs to aid the airport expansion. 

The Scunthorpe works, together with Doncaster Sheffield Airport, is a long-listed site earmarked to be part of the off-site construction of much of the new runway’s requirements. 

It is regarded as 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 before transporting them in consolidated loads to Heathrow just as they are needed. 

It will boost the project’s efficiency and cut emissions by transporting components to site in fewer lorries – should a parliamentary vote anticipated in the first half of this year give it the green light. 

Yorkshire and the Humber is home to 11 longlisted sites, which will be visited as part of a nationwide tour of 65 sites in the running to be offsite construction centres for Heathrow expansion, more sites than any other region. 

The final four logistics hubs will help ensure that businesses across the UK will form part of the airport’s supply chain, enabling Heathrow’s new runway to deliver a legacy of construction excellence in different locations around the UK.

Read more: US steel tariff exemption extension receives cool welcome from business leaders

Lord Deighton, Heathrow Airport chairman, said: “Heathrow expansion is a national infrastructure project that will benefit the whole country, including right across Yorkshire and the Humber, so it is hugely exciting to have a delegation from Heathrow in the region as part of the latest stage of our nationwide tour of potential logistics hubs locations.

“Logistics hubs are instrumental in our aim to ensure that expansion spreads the huge potential of tens of billions of pounds in economic benefits across the UK and will help to transform the construction industry and build a lasting skills legacy for future generations in various locations across the country and beyond London.

“We are working in partnership with local employers, councils and entrepreneurs to support new opportunities for the region arising from Heathrow expansion through new jobs, economic growth and easier and faster journeys to and from Heathrow and Yorkshire and the Humber.”

It is envisaged it could help deliver 11,200 new jobs and £12 billion worth of wider economic benefits across the region.

Ahead of the site visits, representatives from Heathrow will also meet with MPs and local business leaders in Doncaster to discuss the benefits an expanded Heathrow airport would unlock.

British Steel deputy chief executive Paul Martin said: “We’re delighted to welcome Heathrow to our headquarters and showcase the leading role our site, and this region, can play in its expansion.

“We have superb infrastructure, excellent transport connections and unique development opportunities. By working in partnership with our many supporters, we can deliver a first-class logistics hub to Heathrow and a huge economic boost to Yorkshire and the Humber.”

Read more: Steel tycoon to launch bank aimed at helping British industry trade globally after Brexit

Research by WPI Economics earlier this year revealed that integrating an offsite manufacturing supply chain into a major project has the potential to reduce the overall cost of the project by as much as 25 per cent, while speeding up delivery by up to 30 per cent. 

Steve Gill, chief executive from Doncaster Sheffield Airport, just across the North Lincolnshire border, said: “We were delighted to welcome the team from Heathrow to Aero Centre Yorkshire to showcase how our site offers a prime location for a Heathrow Logistics Hub. 

“A hub would fits seamlessly with the airport’s 20 year masterplan as part of a much larger three million sq ft of logistics, construction and manufacturing cluster to be developed at the airport.  

“With dedicated airport road links already in place, and proposals to implement a dedicated airport rail station connecting the East Coast Mainline directly to site, we feel confident that our proposal suits Heathrow’s requirements.

“The economic impact across the region would be undeniable, supported by the area’s world-wide expertise in precision engineering and thriving manufacturing supply chain.”

Read more: Today's main headlines from humberbusiness.com



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