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Opening the door for future growth

Philip Smith discovers that Wakefield’s new Europort rail freight terminal is regarded as the catalyst for future development.

Rolling farmland and undisturbed green fields – at first sight from the M62 there is not much activity at Wakefield’s Europort. However, in this case, first appearances are deceptive. Unseen from the motorway, the recently completed terminal building, resplendent in Railfreight Distribution’s scarlet and yellow livery, forms the focal point of the 142ha (350 acre) site linked by a slip road to junction 31. The first train for Europe via the Channel Tunnel departed on January 8. With at least one departure every day, already the terminal has seen the trans-shipment of materials as esoteric as roofing felt and Italian red wine. Also hidden from the casual observer is construction work to extend the site’s spine road, which will open up a total of 41ha (101acres) for possible development.

However, Wakefield’s position is threatened by a railfreight terminal development at Doncaster, according to Thomas Watson of King Sturge & Co, joint letting agent with Baker Rose at Doncaster’ Direct for Europe railport: “I don’t think there’s room for two [Euroports]. Clearly, to have two major rail terminals within 25 miles seems nonsensical. Doncaster is a better location – it’s on both the M1 and M18.” Andy Griffiths, senior development surveyor at Amec Developments, joint developer of Wakefield Europort with Wakefield metropolitan district council, disagrees. He explains that the two sites compete in different markets: “Doncaster is not an intermodal railfreight terminal and it only offers a service with the UK.”

Watson does concede one advantage to Wakefield: “I think that most people see Wakefield Europort is an excellent warehousing location.” Yet, Griffiths reports inquiries from occupiers as “equally spread between distribution and manufacturing”. Certainly, local agents perceive Wakefield as a trans-shipment facility, whereas Doncaster is seen as a straightforward freight terminal, with no special emphasis on rail.

Questions over funding for Wakefield Europort’s distribution development were answered last month when Hermes Property Asset Management completed a £34m forward-funding agreement. “This agreement will allow development of the first phase of distribution warehouses totalling 65,030m2 (700,000 sq ft),” says Griffiths. Already, he says, some £14.5m has been provided by the local authority and £3.5m from the European Regional Development Fund to develop the site.

This deal means Wakefield becomes the third rail-linked distribution site, following Daventry International Railfreight Terminal and Gwent Europark, acquired by Hermes. It is also one of seven regional Railfreight Distribution terminals in the UK. Occupiers already at Wakefield include Tibbett & Britten, Hagen, Argos, Booker and Scottish Power. Letting agents on the Europort are St Quintin and Jones Lang Wootton.

Wakefield – like the rest of West Yorkshire – faces tough competition from grant-assisted sites in the south: “The big problem we have got in West Yorkshire are the enterprise zones in South Yorkshire,” says Chesterton’s Steve Gibbins. Incentives on offer there are quite a draw for potential occupiers, he believes. However, the two regions are not necessarily competing for the same business -as the strengthening of the market in the M62 corridor shows: “Occupiers are having to pay what the developer wants. There are rent-frees but they are in a harsher market.”

Generally, industrial activity is centred on the motorway junctions in Wakefield, says Bruce Strachan of Robert Austin & Co. Coca-Cola Schweppes and Wm Morrisons supermarkets have expanded on the Wakefield 41 estate at junction 41 of the M1. On the Normanton Industrial Estate and Whitwood Freight Centre, Next has bought a high-bay warehouse and the Hardman Isherwood Group has expanded its distribution operations to 19,509m2 (210,000 sq ft).

In March 1997 the White Rose retail centre will open on the outskirts of Leeds. The concerns of smaller towns about how it could affect local retailing are not shared by Jake Bailey of Donaldsons. “Wakefield is stronger as a centre. I don’t think it is going to hit the centre,” he says.

The city is to be bolstered by a 18,580m2 (200,000 sq ft) mixed retail and leisure development undertaken by Commercial Development Projects and Waverly Square Developments on Ings Road. Details of tenants have yet to be announced but the scheme will provide parking for 1,500 cars. Work will start on site in March. It should be completed in November, says Waverly Square Developments director Roger Fearnley.

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