Construction begins on £1bn logistics site

Oxford Properties Group and Logistics Capital Partners have begun construction work at the UK’s largest logistics development site, West Midlands Interchange.

Oxford and LCP acquired the site in joint venture in 2021 and will invest over £1bn to develop the park, which will also provide intermodal access through a new Strategic Rail Freight Interchange.

The first phase of development has already started at the 734-acre site near Birmingham, including infrastructure works such as earthworks, highways construction, water installation and the creation of two new country parks.

The first plots will be available for vertical builds from the first half of next year with the site able to accommodate new warehouses ranging in size from 200,000 sq ft to over 1 million sq ft and building heights of up to 30 metres.

It is thought the scheme will create 8,500 jobs and generate £430 million local economic activity, and £900 million nationally every year.

The project aims to capitalise on the low CO2e output from rail in comparison to road freight, with 70% less CO2 output, up to 15 times lower nitrogen oxide emissions and nearly 90% lower particulate emissions, to support the UK’s net zero targets. WMI could remove as many as 77 HGVs from the road with every freight train, aiming to secure a reduction of 50 million kilometres of HGV traffic annually.

James Boadle, head of logistics and European strategy at Oxford Properties, said: “Demand for best-in-class logistics space that’s sustainable and well connected continues to significantly outstrip supply; especially in the UK’s ‘Golden Triangle’. With spades now in the ground, we are at the first step in the construction of this major project that we are undertaking alongside LCP.”

LCP managing partner, James Markby, said: “We look forward to delivering what will be a world leading logistics hub, with a new Strategic Rail Freight Interchange, while delivering significant economic benefit to the region and nationally, and creating a milestone example for private investment that materially contributes towards a carbon net zero future.

Construction firm, Winvic have been appointed on the first phase of the construction. Rob Cook, director of civils and infrastructure said, “Our team is experienced in delivering similar sustainable rail served logistics parks and in working collaboratively to give local people access to construction skills and employment.”

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