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Scottish Heathrow expansion site comes a step closer as search for ‘Logistics Hubs’ ramps up

Wednesday June 13th, 2018

This week (13th June), Scotland will get one step closer to helping deliver an expanded Heathrow, as representatives from the UK’s only hub airport tour the remaining six longlisted ‘Logistics Hubs’ in the running to potentially become off-site construction centres for Heathrow expansion.Government Opportunities

The sites will help to ensure that Scotland plays a key part in the construction of Britain’s new runway.

The Heathrow delegation will visit six sites located across the west of Scotland; Glasgow Airport Investment Area, Mossend, Eurocentral, Queenslie Industrial Estate, Glasgow Prestwick Airport and Hunterston. The Scottish tours started in March 2018 initially, when the delegation surveyed four sites – Westfield, Rosyth Business Park, Forth Ports Rosyth and Longannet. During the visits, the prospective bidders have the opportunity to showcase the unique strengths of their sites.

Heathrow expansion is set to create up to 16,000 new jobs and deliver up to £17 billion worth of economic growth across Scotland. The additional capacity expansion will bring could also create the potential for new domestic services to Scottish airports boosting the country’s tourism and trade.

Heathrow has a longstanding relationship with Scotland, and it is the only part of the UK that is guaranteed a Logistics Hub, a commitment outlined in the airport’s MoU with the Scottish Government. Heathrow is keen to utilise skills and construction expertise across the country to deliver the UK’s largest infrastructure project. The 10 longlisted sites will not only need to illustrate engineering prowess, they will also need to demonstrate a skilled and dedicated workforce, capability to collaborate on the nationwide project and good connectivity allowing output to be easily transported to Heathrow.

Once established, the Scottish Logistics Hub will ensure that Scotland plays a key part in the airport’s supply chain, enabling Britain’s new runway to deliver a legacy of construction excellence for the nation. As well as the direct benefits, research from WPI Economics shows that, if adopted more widely, the ‘Logistics Hubs’ approach could spur growth in off-site construction and lead to a productivity boost worth £30 billion for the industry outside of London by 2025.

The sites will be used to pre-assemble components of an expanded Heathrow before transporting them in consolidated loads to the airport. Logistics Hubs are essential in ensuring Heathrow expansion delivers for the whole country by spreading jobs, boosting productivity and modernising the construction industry outside of London and the South East. The approach will ensure that 60% of procurement spend occurs outside of London, allowing the airport to spread the benefits of investment up and down the country and engage essential skills and expertise from across Britain.

Economy Secretary Keith Brown MSP said:

Expansion at Heathrow will bring major investment and job creation opportunities to Scotland. The establishment of a logistics hub in Scotland is one of the key commitments secured in the Memorandum of Understanding we signed with the airport. We are very pleased to see bids from across Scotland being given detailed consideration by the Heathrow team and this round of visits will improve the delegation’s understanding and knowledge of what we have to offer.”

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