The first container terminal north of Felixstowe able to handle the large “post-panamax” ships will have the capacity to hold double the amount of containers, increasing from 750,000 to 1.5 million.

The £300m investment in Liverpool 2 made by Peel ports will allow for two container ships holding up to 13,500 containers to dock simultaneously, with the current limit being 4,500 containers.

But with the news that the North West region accounted for the biggest UK take-up in the first quarter of 2015, what impact will this extra container capacity bring to the North West Logistics and Industrial market?

The theory is that with 35 million people living within 150 miles of Liverpool, this new investment will make it cheaper to distribute from Liverpool, rather than other locations in the North or South East. We have already seen direct deals related to the new port, with 210,000 sq ft transacted at Atlantic Park in Liverpool now let for the storage of steel during the construction of the port. And in 2014 a major 3PL came close to taking a 400,000 sq ft build to suit unit close to the port.

With containers being transported along the Manchester Ship Canal from Liverpool to Port Salford we expect the level of requirements centred on West Manchester and Liverpool to increase, with the supply of built stock in the North West currently standing at 3.9 million sq ft.

Savills Research: North West Logistics supply continues to fall

Sites set to benefit from the new port include Atlantic Park, which recently completed major infrastructure works and can now deliver over 400,000 sq ft. Other schemes well located to benefit will be HBC Fields Widnes, G Park, Widnes and Stonebridge Business Park, which can accommodate buildings up to 1 million sq ft.

So while Liverpool 2 may not shift the logistics heartland away from the Midlands and the Golden Triangle, it does have the potential to ensure that the North West remains a key market for the sector which in turn will help deliver much needed investment stock.

Further information

Contact Savills investment sales and acquisitions team.