Future Cities
2022 Global Seaport Review: Felixstowe, U.K.
Navigating evolving global seaport regions and their impact on industrial real estate
December 13, 2022 4 Minute Read
Felixstowe is the most significant container port in the U.K. Its new freeport status and its established intermodal links to the U.K.’s key logistics hubs will fuel strong market growth.
Overview
The Port of Felixstowe is the largest and most significant container port in the U.K., processing between 3 million and 4 million TEUs a year. The port handles around 2,000 ship calls a year, including regular services to some 700 ports globally, and can accommodate the largest container ships operating today. Felixstowe is close to the main European shipping lanes, with only a small deviation required for ships operating in the range of Hamburg to Le Havre. These factors contribute to the port’s 35th ranking on the United Nations Port Liner Shipping Connectivity Index.
Felixstowe is within the boundaries of Freeport East, one of the U.K.’s new freeport zones, providing tax advantages and simplified customs procedures. It’s owned and operated by CK Hutchinson, a Hong Kong-based company that owns numerous ports worldwide.
Figure 1: TEU volumes
Source: CBRE Research, Port of Felixstowe, 2022.
Figure 2: Population demographics
Source: World Population Review, Ipswich, 2022.
The U.K.’s preeminent container port with a deep harbor and strong intermodal links to the Midlands Golden Triangle
Port features
The port has nine berths and is one of only two U.K. ports that can accommodate post-Panamax container ships up to 22,000 TEUs in size. The port has also invested in eight electric remote-controlled gantry cranes.
There are a variety of tax incentives to spur land development and leasing within the freeport to support the establishment and expansion of business activities. These include Stamp Duty Land Tax relief, Enhanced Structures and Buildings allowances, business rate relief, employer national insurance contributions relief, and enhanced capital allowances. Companies also benefit from simplified customs procedures that allow customs duties to be waived or deferred.
Figure 3: Port details
Source: CBRE Research, Port of Felixstowe, 2022.
Trade partners
The port’s main trade is conducted with EU countries. Some of its key partners are the Netherlands, Belgium, France and Germany.
Intermodal transportation
The port has three rail terminals connecting it to 15 terminals across the U.K., with the majority located in the Midlands and the North. There is a direct rail connection to the Midlands Golden Triangle, which is the destination of 70% of containers traveling through the port.
Real estate influence
The port is a significant factor in the local logistics market. There is 1.45 million sq. ft. of space already developed at the Trinity Distribution Park, located within the port precinct. In addition, 2.36 million sq. ft. will be developed as part of Freeport East. This will be the largest logistics park in the region, with both build-to-suit and speculative units. There is also 1.18 million sq. ft. of new speculative development close to the port across six units to be delivered between Q3 2022 and Q2 2023.
Figure 4: Industrial & logistics market stats
*Ipswich market stats
Source: CBRE Research, H1 2022.
Explore Global Seaports by Port
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