New bulk storage in Liverpool sold out before its construction was complete, due to high demand likely resulting from challenging growth conditions in the UK.
Half of the brand new 237,000 sq ft multipurpose warehouse at the Port of Liverpool was assigned for grain, and this space was fully booked up by importers while construction was still ongoing.
The first of two vessels successfully offloaded the Alexandra Dock facility’s first shipment of grain on 12 July, with a second shipment arriving later in the month. When full, the shed will accommodate approximately 90,000 tonnes of cargo.
Operator Peel Ports invested £25 million in the development of the warehouse, which was designed by industry experts for the efficient storage of dry bulks.
Phil Hall, Mersey Port Director at Peel Ports Group said: “We’re seeing very strong demand for storage at ports rather than further inland – in this case, it is due to the wet weather earlier in the year impacting the harvest, making the job much harder for UK farmers, and so as a nation we’re having to import more grain and animal feed to keep up with demand.
“But owners of all cargo types say they’re looking for efficiencies at every point in the supply chain, and we need to be responsive to that. Investing in and creating infrastructure that’s essential for the future has always been at the heart of our strategy, and this is a perfect example of us doing that – and good news for our customers as they look to reduce costs and improve reliability.”
Customers utilising Alexandra Dock Warehouse will also gain access to Peel Ports’ port-centric solutions to enhance their efficiency, with services including customs clearance, inventory management and transportation services.
In addition to its operational efficiency, the warehouse is set to play a significant role in Peel Ports' sustainability efforts. The installation of over 6,000 solar panels on the warehouse’s roof has begun, forming part of a larger project across the Port of Liverpool to install up to 63,000 panels - set to become the UK's largest roof-mounted solar energy system.
Farming industry body the Agriculture and Horticulture Development Board (AHDB) produces regular insights on the sector which highlight continued issues with the weather impacting on harvests, in terms of quality and quantity compared to the average. Forecasts for winter and spring wheat are considerably behind where they were this time last year, which could increase import requirements.
For more information on recent trends and projections on the UK’s cereal crop production and trade, see AHDB’s annual market outlook and its latest quarterly report.