TWO development sites at the Port of Southampton will be marketed to “a range of businesses” – bringing new jobs to the city.
Colliers and Lambert Smith Hampton have both been appointed by Associated British Ports (ABP) to market 30 acres.
This is made up of a 22-acre Redbridge site, which benefits from Freeport status, and an eight-acre site on the Marchwood Industrial Park.
These areas are part of a national initiative by ABP which will see it release more than 1,000 acres to support the UK’s supply chain, manufacturing and renewable energy sectors.
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ABP’s Head of Property in Southampton, Ian Henderson, said: “These strategic sites are capable of attracting a range of businesses to Southampton and creating new jobs.
“Redbridge is a prime development site located in the thriving Western Docks. It sits within the Solent Freeport area and will provide tax benefits for businesses locating there.”
It has been estimated that a business leasing a 100,000 sq ft warehouse for 25 years in a freeport location could achieve tax savings of more than £4m in its first five years of occupation.
Southampton MP Royston Smith, who represents the Itchen constituency, said: “One of the things Southampton struggles with is a shortage of land.
“If we are to recreate some of those manufacturing jobs we have lost over the past 20 years, we will need sites such as these.
“This is excellent news for the job prospects of Southampton people and for the wider region in general and is very welcome.”
The growth of online retailing is creating unprecedented demand for logistics space.
The UK currently has the third-highest e-commerce penetration ratio globally at 24 per cent with annual online spend of approaching £100bn.
An e-commerce penetration ratio is the percentage of total households in a specific area that have bought goods online at least once within the last 12 months.
Mr Henderson added: “Like Redbridge, the Marchwood site has excellent transport links which make it an ideal base for logistics operators.
"Business space in strategic locations, like ports, is key at a time where demand outstrips supply.
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"Ports support the supply chain in a unique way, providing access to people, power and property – ultimately building a stronger supply chain with greater resilience to meet customer needs.
“With experienced, in-house resource and a proven track record of delivering substantial infrastructure projects, ABP Southampton is in a unique position to facilitate rapid planning and development.”
The online spending ratio in the UK is forecast to rise to 32% by 2025.
It is estimated that for every additional £1bn of online spend around 1m sq ft of logistics space is needed to fulfil delivery.
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