Maersk's move from Felixstowe to London Gateway will have implications for rail freight

Shipping company Maersk has announced that it will not be using the port of Felixstowe for larger vessels from next year, instead it will be moving part of its operations to London Gateway in Essex.

Maersk said in a statement that the move was part of the Gemini Co-operation - a wider review of its operations which it is conducting with another shipping company, Hapag-Lloyd.

The news of Maersk’s decision has been met with a mixed response from the rail freight industry, with concerns on how it will affect the port's current freight paths as well as future capacity.

The move is seen as a big coup for DP World, the owners of London Gateway who recently announced that it would be developing a second rail terminal at the port as well as two further berths for large containers.

Ernst Schulze, chief executive of ports and terminals at DP World in the UK said: "Gemini (Maersk & Hapag-Lloyd) choosing London Gateway for their Asia-Europe and Middle East-Europe services is a testament to the investments we’ve made to build an advanced, world-class logistics hub.

For some of the big carriers out of Felixstowe port, the move will have benefits to its wider business. This could be the case for GB Railfreight.

Julie Garn, Intermodal Director – GB Railfreight told RAIL that it hoped the move would “drive more goods to be moved by rail".

Garn also confirmed that it will still be operating “a number of services out of Felixstowe as well as London Gateway”.

Maersk has since confirmed to RAIL that it will not be pulling out completely with its own operations outside of the Gemini Cooperation continuing. This will not include its most significant Felixstowe based Asia-Europe service which will be moving to London Gateway.

However, a source told RAIL that there will still be a big affect on freight-only carriers with logistical issues on re-routing current services through Suffolk to lines further south a key issue that will need to be worked out by the industry.

Whilst capacity could exist with sufficient paths available, opportunities to electrify the route in and out of the port is still needing to be resolved.

There has been a long-standing campaign to electrify the Felixstowe Branch line, currently the only route in and out of the port itself. If the route was electrified, it could significantly expand rail freight coming in and out of Felixstowe, however possible funding for the scheme has been pushed back by the Department for Transport until 2025.