Business

Heathrow chooses Ballykelly and Michelin sites as potential logistics hubs

THE old Shackleton Barracks site near Limavady and the former Michelin plant in Ballymena are among just 16 UK locations left in the running to be chosen as one of four logistics hub for Heathrow airport in a move that could help provide a productivity boost to construction outside London worth £30 billion.

Heathrow will be the first major infrastructure project in the UK to pioneer the large-scale use of logistics hubs, aiming to build as much of the project off-site as possible.

The hubs will work by pre-assembling components remotely before transporting them in consolidated loads to Heathrow, as and when required.

Heathrow plans four logistics hubs across the UK, with an initial list of 121 applications being whittled down to 65 sites, each of were visited last year by officials from the airport.

And the former military base at Ballykelly, owned by the MJM Group, and the Michelin site, operated by Graham Construction, are through to the last 16, and will now be invited to enter a formal tender process this autumn.

Logistics hubs, and the benefits of offsite construction and consolidation, have been a key pillar of the case for a proposed £16 billion expansion at Heathrow.

That expansion is estimated to create up to 5,000 jobs in Northern Ireland and up to £5 billion of economic benefits, according to independent analysis on behalf of the Airports Commission.

"From the outset we have been committed to ensuring that Heathrow expansion delivers for every region of the UK," a spokesman for the airport said.

"We see the use of logistics hubs for pre-fabrication and off-site manufacturing to help spread the benefits and the legacy of this national piece of infrastructure across the nations and regions of the UK

"Our ambition is also to support thousands of jobs and opportunities for local people and others across the UK, developing new skills needed to build and run Heathrow in the future through new apprenticeships and training opportunities within its supply chain."

Naoimh McConville from the MJM Group said previously: “These Heathrow logistics hubs offer an opportunity to transform the UK construction industry, and we believe Ballykelly represents an ideal location for one of the four sites.”

She added: “Heathrow expansion is a truly national project that will benefit every region by spreading jobs, boosting productivity and modernising the construction industry outside of London and the South East.

“A logistics hub in Ballykelly would bring huge benefits to people and businesses in not only the north west but across Northern Ireland, creating jobs and supply chain opportunities and leaving a skills legacy for future generations.”

Heathrow spends £1.5 billion every year with its supply chain, which includes many Northern Ireland firms.