Peel Ports Group, the UK’s second-largest port operator, has announced a multi-million-pound programme to create more than one million square feet of additional Grade A warehousing across its network, addressing a market where demand for space continues to outstrip supply.

According to a July report by Savills, there is increasing demand for larger warehousing across the country, signalling a potential shortage and reinforcing the importance of strategically located logistics infrastructure.

Set against this backdrop, Peel Ports is investing to ensure customers can access the storage capacity needed to keep supply chains resilient, efficient and secure.

The phased programme will deliver one million square feet of new warehousing – around 92,000 square metres, or the size of roughly 13 football pitches.

The initial phase is focused on the Port of Liverpool, where a new 900,000 sq ft warehouse and upgrades to existing facilities will support expanding customer operations across the North West and beyond. A further 100,000 sq ft facility will be developed at King George V Dock in Glasgow, strengthening the group’s nationwide warehousing footprint.

The move comes as more businesses rethink supply chain strategies in response to shifting global trade patterns, evolving customer needs and the drive for greater resilience. Many are turning to port-centric warehousing to cut transport costs, boost operational efficiency and gain direct access to major import and export routes.

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Demand is being fuelled by sectors of strategic importance, including fertiliser, chemicals, defence, manufacturing and other bulk commodity markets.

Peel Ports has seen a marked rise in fertiliser-related enquiries in recent months, as importers and distributors seek reliable, accredited storage to support agricultural supply chains and maintain product availability across the UK. The expansion will enhance the group’s capability to serve this vital market, contributing to food security and broader supply chain robustness.

The new facilities will also better support chemical customers requiring specialist storage and compliance, as well as defence supply chains that rely on secure, well-connected logistics hubs near key transport gateways.

David Huck, Chief Operating Officer Ports & Marine at Peel Ports Group, said: "Our customers are increasingly looking for high-quality storage space located close to our network of ports, and demand continues to grow across a number of critical industries.

"While economic conditions remain challenging, the strength of demand, particularly in Liverpool and across the wider North of England and West Coast of Scotland, gives us confidence to make this significant investment.

"Having warehousing located close to the quayside enables customers to streamline operations, reduce transport movements, improve speed to market and enhance supply chain resilience. In a world where every pound, every day and every decision matters, that creates a significant competitive advantage."

Minister for Aviation, Maritime and Logistics, Keir Mather said: "Ports are the backbone of the UK economy, ensuring goods and people flow freely in and out of the country. This multi-million pound investment in new warehousing at Liverpool and Glasgow will keep our proud maritime cities competitive, boost local growth and support new, skilled jobs.

"More widely, we're backing UK maritime with £448 million to drive innovation and deliver the clean fuels and technologies of the future – revitalising our coastal communities, reducing emissions and ensuring the UK's shipbuilding heritage continues to thrive."

The latest commitment builds on Peel Ports Group’s long-term expansion of logistics and warehousing capabilities. Over the past 15 years, it has developed more than 1.6 million square feet of Grade A warehousing at sites including the Port of Liverpool and London Medway, supporting customers in steel, metals, bulk commodities and other key industries.

The new facilities will further enhance the group’s integrated port-centric logistics offer, combining warehousing with shipping, rail and road connectivity to support customers across the UK and international supply chains.

Further details will be released as the projects move towards completion.