Cammell Laird targets Heathrow expansion contract, as site tour begins
Merseyside engineering company Cammell Laird is welcoming the official launch of the Heathrow expansion tour of shortlisted sites seeking to become pre-assembly hubs for the construction of the airport’s new £16bn third runway.
Cammell Laird is one of 65 shortlisted sites to be visited on the tour in the first half of 2018, headed by Heathrow’s Chairman, Lord Deighton, ahead of opening a pre-qualification questionnaire process later this year. Two sites operated by Cammell Laird – Campbeltown Road and the MEA Park Wirral Waters in Beaufort Road – are on the shortlist to be reviewed. 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 off-site before transporting them in consolidated loads to Heathrow as they are needed.
Heathrow says bidders 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.
Cammell Laird energy division’s managing director Jonathan Brown said the company has tabled a strong bid for Heathrow, as it looks to diversify into new sectors supplying large modular build structures and engineering services.
“Being shortlisted helps Cammell Laird ramp up awareness of its demonstrated capabilities for supply of plant to industries outside maritime,” he said. “Heathrow’s expansion is just the type and size of engineering work we are targeting. With our unique facilities, highly skilled workforce and coastal location we can supply the Heathrow expansion project as well as sectors like nuclear new build, oil and gas, utilities, renewables and rail. Our bid is further strengthened by our close relationship with Peel and its ports and logistics infrastructure in Wirral, Liverpool and along Manchester Ship Canal.”
Mr Brown said Cammell Laird is offering Heathrow a wide variety of benefits drawn from its experience as a major contractor in the maritime industry managing multi-million contracts such as building the £160million Sir David Attenborough polar research vessel and the supply of flight decks for the new aircraft carriers.
“Cammell Laird has a reputation for the delivery of high profile engineering projects,” he said. “We are well used to working in partnership with our customers and other companies to find efficiencies throughout the project. We have an established local and national supply chain network well suited to Heathrow’s requirements to prefabricate, preassemble and consolidate components. Building off-site at Cammell Laird will deliver better quality and more competitive products compared with building on any congested construction site. We estimate an increased efficiency of 30pc for constructing at Cammell Laird sites compared with on-site build. Moreover, we have deep water access to transport large loads by sea which lowers carbon emissions and reduces road and rail congestion.”
Mr Brown said another prime benefit Cammell Laird is offering Heathrow is its partnership with the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC) which has co-located in a manufacturing test centre at Cammell Laird’s Birkenhead site.
“Nuclear AMRC helps us become more efficient and competitive by introducing advanced techniques and technologies in the manufacturing and assembly process,” he said. “It is a core part of the High Value Manufacturing Catapult, an alliance of seven leading manufacturing research centres backed by the UK’s innovation agency Innovate UK”
Heathrow Airport is launching a nationwide tour of 65 sites still in the running to be the off-site construction centres for Heathrow expansion. ‘Logistics Hubs’ will help ensure that businesses across the UK can form part of the airport’s supply chain, enabling Heathrow’s new runway to deliver a legacy of construction excellence across the UK.
This announcement is the latest major milestone in the delivery of Heathrow expansion, and comes ahead of an expected Parliamentary vote on the policy framework in the first half of this year.
The sites will be used to pre-assemble components of an expanded Heathrow before transporting them in consolidated loads to the airport. Heathrow expansion will be the first major infrastructure project to use off-site construction centres. The hubs will play a key role in supporting expansion’s efficient delivery, mitigating the impact that concentrated construction activity would otherwise have on the airport’s local communities.
At each site visit, airport representatives will meet the businesses applying to become a key part of the expansion supply chain strategy. The Logistics Hubs will have the opportunity to demonstrate strengths in a range of areas, as Britain’s only hub airport seeks out the best businesses to partner with and deliver Heathrow expansion. Bidders 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.
The 65 sites were longlisted from an initial 121 applications in November 2017. Heathrow representatives will visit all longlisted locations in the first half of 2018, and aim to open a pre-qualification questionnaire process later this year.
These 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. They will ensure that 60% of procurement spend will be outside of London, spreading the benefits of local investment up and down the country. As well as the direct benefits, new research from WPI Economics shows that, if adopted more widely, the 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.
Heathrow’s Logistics Hubs feature in the Government’s Industrial Strategy, listed as an example of how to develop skills across the UK and create conditions where successful businesses can emerge. Heathrow has also begun working with other major infrastructure companies to explore how the final sites could be used for future projects.
The UK-wide site tour begins at Leeds Bradford Airport where Heathrow’s Chairman, Lord Deighton, will explain the benefits of being part of Heathrow’s world leading supply chain. David Laws, Chief Executive of Leeds Bradford Airport, one of the applicants in the running to be chosen as a final Logistics Hub, will then host Lord Deighton on a tour of the site.
Lord Deighton, Chairman at Heathrow Airport said: “Heathrow Expansion is a once in a generation opportunity to transform the UK construction industry, build for the future and deliver a lasting skills legacy for future generations. All of this comes at a pivotal time for our country, as it prepares itself to leave the EU and where we need to build for our future in both travel and trade.
“An expanded Heathrow is for all of Britain and the Logistics Hubs are instrumental in our aim to ensure that expansion spreads the huge potential of its £187 billion in economic benefits across the UK, whilst minimising the impact on the airport’s local communities. Off-site construction is an innovative way for these balances to be met and we can’t wait to see for ourselves the opportunity we have in working with the best businesses in the country.”
David Laws, chief executive of Leeds Bradford Airport, said: “I am proud that Leeds Bradford Airport is kicking off Heathrow’s nationwide tour. We believe this airport represents an ideal location for one of Heathrow’s Logistics Hubs. The knock-on effects of a site here would bring huge benefits to people living in and around the airport, creating jobs in the local area. At Leeds Bradford, we connect people to the world, and it is great that Heathrow is connecting people across the country with the benefits that Heathrow expansion will bring.”
About Heathrow Logistics Hubs
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 off-site before transporting them in consolidated loads to Heathrow just as they are needed. This method will boost the project’s efficiency and cut emissions by transporting components to site in fewer lorries. Research by WPI Economics revealed that integrating an off-site manufacturing supply chain into a major project has the potential to reduce the overall cost of the project by as much as 25% whilst speeding up delivery by up to 30%.