- DP World cancels £1bn UK investment after criticism
- P&O Ferries’ treatment of workers sparks outrage
- Summit aimed at boosting UK investment now faces setbacks
Following complaints from Sir Keir Starmer’s cabinet members concerning its subsidiary P&O Ferries, Dubai-based corporation DP World has decided to rethink its plans.
The government’s Investment Summit has taken a big hit after DP World canceled a planned £1 billion investment in its London Gateway container port in response to criticism from Sir Keir Starmer’s cabinet members.
The Dubai-based company’s investment was scheduled to be the centerpiece of Monday’s event, intended to highlight Britain’s attraction to investors. The prime minister and Chancellor Rachel Reeves would address it.
DP World’s investment in the port has been reconsidered after Transport Secretary Louise Haigh and Deputy Prime Minister Angela Rayner criticized its subsidiary, P&O Ferries.
In March 2022, P&O sparked outrage by firing 800 British sailors and replacing them with cheaper, mostly foreign personnel, claiming the move was necessary to keep the firm afloat.
On Wednesday, Ms Haigh announced new regulations to protect seafarers, referring to P&O as a “rogue operator” and urging people to boycott the company.
In a joint press release with Ms Rayner, Ms Haigh called P&O’s activities “a national scandal,” while Ms Rayner called them “an outrageous example of employer manipulation.”
While Ms. Haigh has previously denounced P&O’s behavior, the strength and timing of the ministers’ remarks undercut the Department for Business and Trade’s efforts to make the Investment Summit a watershed moment for the government and the economy.
Hundreds of business leaders and investors, including representatives from US private capital and sovereign wealth funds, will attend the event in the City of London as the government seeks billions of pounds in foreign investment to finance its plans.
Downing Street sees the occasion as an attempt to reset Sir Keir’s premiership following a rocky first 100 days marred by disagreements over his advisers and acceptance of freebies.
In addition to losing a £1 billion investment in the UK’s critical strategic infrastructure, the apparent lack of cooperation among ministers will again draw attention to the competence of government operations.
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It is thought that DP World’s chairman, Sultan Ahmed bin Sulayem, personally decided to withdraw the statement and evaluate an investment that had been under negotiations for months.
He was supposed to attend the Investment Summit on Monday but will not fly to London.
Mr. Sulayem has previously refused to apologize for P&O’s actions, claiming that the summary dismissals were a choice made by local management that ultimately ensured the company’s survival and the retention of thousands of employees.
The £1 billion investment was intended to extend the London Gateway complex by adding two more berths to the existing four and a second rail terminus. The development would have made it the UK’s largest port by volume.
DP World had global revenues of about £14 billion in 2023 and operates in over 60 countries. It has already invested £2 billion in London Gateway and owns and runs Southampton’s cargo port.
