Port and logistics firm DP World is going ahead with a 1 billion pound (US$1.3 billion) investment in its London Gateway port that will create 400 jobs, Bloomberg reported on Saturday, after media reports earlier this week said the Dubai-based company was pulling out of the planned investment.
Sky News reported on Friday that DP World had paused the planned investment after two ministers in Prime Minister Keir Starmer's government criticised practices at its subsidiary P&O Ferries.
In reports on Friday, Sky News and Bloomberg said DP World was reviewing the planned investment, which had been due to be a major plank of announcements on Monday at an investment summit hosted by the government.
The reports also said DP World's chairman, Sultan Ahmed bin Sulayem, had pulled out of attending the summit. DP World declined on Friday to comment on the reports.
Bloomberg said DP World's chairman would stick with the original plan to be part of the event and quoted a DP World statement as formally announcing the investment.
Asked about the Bloomberg report, a spokesperson for the company said in an emailed statement:
"Following constructive and positive discussions with the Government, we have been given the clarity we need. We look forward to participating in Monday's International Investment Summit." The statement emailed to Reuters did not refer to the status of the planned investment.
In 2022, P&O Ferries made 800 staff redundant with immediate effect and suspended crossings for the next few days, prompting a backlash from politicians and unions who criticised plans to hire cheaper agency workers instead.
P&O Ferries said at the time it had to make swift and significant changes because the business was not sustainable otherwise.
Earlier this week Deputy Prime Minister Angela Rayner and transport minister Louise Haigh were critical of P&O Ferries over the incident. Since DP World's withdrawal from the conference was reported, Starmer walked back some of the criticism by his ministers, Bloomberg said.