Peel Ports commits £100 million to expand UK steel logistics network
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Peel Ports Group is investing £100 million to expand its steel and metals multimodal infrastructure in a move that could reshape supply chains for UK construction and civil engineering. The investment includes immediate upgrades, new automated handling terminals, and enhanced rail connectivity that aim to improve speed, scale, and storage capacity across major ports and inland terminals.
Across the Ports of Liverpool and London Medway warehousing will grow by 50 percent rising by 500,000 square feet above existing capacity. In Liverpool an initial £32 million spend will add 140,000 sq ft of storage at the steel and metals terminal there. New dedicated automated terminals for steel coils are planned in Liverpool and Sheerness along with a Midlands based inland rail terminal to link the two deep water ports. Peel Ports expects this to support growing demand for steel handling all over the UK.
Steel imports at Liverpool reached a record in 2024. The port handled 702,000 tonnes of bulk steel a year much of it in coil form, bound for construction automotive renewables and manufacturing. Eighty five percent of those imports were steel coil.
Implications for supply chains
The increase in warehousing and automated handling terminals will ease one of the major constraints in the construction sector: delays caused by inadequate storage and inefficient distribution of structural steel, rebar, plates and coil. By adding dedicated infrastructure in both Liverpool and London Medway, and by introducing a rail facility in the Midlands, Peel Ports is reducing the time steel spends in transit or sitting in port, waiting for onward transport. This has the potential to reduce project lead times and cost overruns in civil engineering works that are sensitive to supply delays.
Furthermore improved storage capacity and handling for large steel products such as coils will help fabricators and contractors to better plan inventory levels. That can reduce the need for emergency sourcing which often comes at a premium. The automation in new terminals suggests greater throughput and more consistent handling which can translate into fewer damages or loss in product quality. For large scale infrastructure projects such as road networks rail lines and public utility structures, these efficiencies can slot into tight schedules more reliably.
Broader effects on infrastructure and logistics
Rail connectivity via a new inland terminal in the Midlands will allow movement of steel and metals much closer to centres of civil engineering demand in central England. That means less reliance on long haul road transport for heavy or bulky steel, potentially reducing the cost of moving large volumes, lowering carbon emissions, and easing pressure on road networks. It also improves resilience of the supply chain by offering modal flexibility.
The increase in deep water capabilities and storage at Liverpool reinforces the UK’s ability to import large volumes of steel by sea. That becomes especially relevant when domestic production faces energy cost pressures or when shipments are disrupted. Records show Liverpool is emerging as a global import hub for steel and metals.
On a regional level the expansion may attract associated businesses such as steel fabricators preferring proximity to improved logistics. That could lead to local job growth in warehousing assembly treatment and finishing operations. Civil engineering firms might also adjust procurement strategies favouring ports and terminals that can deliver steel closer to their sites.
Risks and challenges
The investment assumes demand for steel continues to grow. Construction materials costs remain volatile and cycles of demand in construction and infrastructure can slow unexpectedly. Global oversupply of steel could push prices down, but if ports invest too heavily in capacity before demand is stable there is a risk of under‑utilised assets. Planning, regulation and environmental constraints may also slow terminal roll‑out projects especially those involving land and rail connections.
In short this investment strengthens links between steel import hubs and construction demand centres improving speed and scale in UK infrastructure supply chains.
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