british steel scunthorpe · british steel customer partners 8 2.3.4. north lincolnshire / humber...

BRITISH STEEL SCUNTHORPE CONCEPTUAL MASTERPLAN

IMAGINE THE POTENTIAL

MAY 2018

SCUNTHORPE FACILITY / CONCEPTUAL MASTERPLAN

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CONTENTS

1. Introduction 41.1. Introduction 41.2. Background and context 41.3. Vision 5

2. Existing Site Attributes 62.1. Site Location 62.2. Utilities and on-site infrastructure 62.3. Supply Chain 62.3.1. British Steel logistics partners & capability 62.3.2. British Steel supplier partners & capability 82.3.3. British Steel customer partners 82.3.4. North Lincolnshire / Humber supply chain 8

3. Concept Masterplan 93.1. Land Available for Redevelopment 93.2. Masterplan Overview 93.3. Key Development Sites 103.3.1. Bloom and Billet Mill 103.3.2. Redevelopment of the Plate Mill Site 123.3.3. Redevelopment of Redbourn

and Dawes Lane Land 133.3.3.1. Rail Hub 14

4. Transportation Networks and Connectivity 154.1. Highways and Road Infrastructure 154.2. Rail Infrastructure 164.3. External Transport Networks 17

5. Delivery model options 18

6. Logistics and Planning 196.1. The local and regional logistics sector 196.2. The local supply chain 196.3. Sector Employment 196.4. The Planning Policy Context 19

Aerial view of British Steel Scunthorpe site

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Loading British Steel Rail ready for despatch


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1. INTRODUCTION

1.1. Introduction

This document presents a vision for the development and regeneration of the British Steel production facility inScunthorpe. The plan illustrates the extensive capacity forflexible economic development and growth which thesite provides. Firstly conceptualising the British Steel site asan excellent location for one of four Heathrow ExpansionLogistics Hubs, the masterplan also serves to illustrate thepotential of the site for inward investment for otherpurposes. A brownfield site, with an exciting combinationof land, buildings and infrastructure, the total area ofopportunity extends to 525 acres.

1.2. Background and context

The Scunthorpe site covers a total area of 2,800 acres,embracing the current steel making operations whichproduce 2.8 million tonnes of liquid steel per annum. The majority of the land is either required for ongoingBritish Steel or third party operations or is unsuitable fordevelopment. Due to changing business requirements thesite footprint has numerous possibilities to use up to 525acres of existing land or buildings for the purposes of alogistics hub. Existing buildings formerly housing ourBloom & Billet Mill, Heavy Section Mill and the soon to bedemolished Plate Mill building represent 260,000 squaremetres.

In recognition of the site’s extensive development potentialand excellent rail connectivity, British Steel submitted anExpression on Interest to become one of four HeathrowExpansion Logistics Hubs and was named as one of 65sites on the long list, being considered for selection.

The new logistics hubs will maximise the opportunities forbusinesses large and small across the country to become akey partner in delivering this internationally significantinfrastructure project.

The following masterplan addresses the objectives of theHeathrow Expansion Logistics hubs and illustrates how theBritish Steel’s Scunthorpe site can meet these requirementsfrom a land use perspective whilst also showcasing potentialfor wider, local and regional economic regeneration.

Heathrow’s new logistics hubs will pre-assemblecomponents of the expanded airport beforetransporting them in consolidated loads toHeathrow. By not building everything on-site atone of the world’s busiest airports, the logisticshub will play a key role in supporting the project’sefficient delivery, will make the project moreaffordable and will reduce emissions bytransporting assembled components to site infewer lorries. The new logistics hubs will alsospread the jobs created from the project acrossmore communities in every corner of the UK.

View of Blast Furnaces

Heathrow quote from press release of expansion news


1.3. Vision

The long term vision for British Steel Scunthorpe facility isto see the site transformed into a hub where newenterprise and industry combined with existing steeloperations contributes to, and facilitates economic growthand prosperity across North Lincolnshire and the widersub-region. In line with the North Lincolnshire Growth Plan2018-2023, the regeneration of the site will focus onsupporting an increase in productivity and a competitive,diverse and high value local economy based on innovationand the creation of 14,000 new and highly skilled jobs. In particular the objectives of this Masterplan are to:• Illustrate how existing British Steel assets can be

reconfigured to deliver the objectives of the Heathrow Logistics Hubs concept and provide inward investment opportunities for new industry

• Showcase the redevelopment opportunities that exist across the site for the range of new uses and enterprises needed to deliver a project of this nature

• Outline the attractiveness and suitability of the site for new development in terms of the location, connectivity and on-site infrastructure

• Illustrate how large scale regeneration of this kind is in-line with local and regional economic development strategies

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British Steel Scunthorpe Site Land Use Map

Steelmaking in operation


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2. EXISTING SITE ATTRIBUTES

2.1. Site Location

The location of the British Steel Scunthorpe facility on theeastern side of Scunthorpe in North Lincolnshire, and itsexcellent access to multi-modal connectivity networks,means the site is an excellent location for inwardinvestment across a range of industries and sector and isperfectly placed to deliver the objectives of the HeathrowExpansion Logistics Hubs. The area and wider region boasts:• Easy access to the UK’s motorway and trunk road

network. 1.8 million population can be reached within 60minutes, 50 million within 4 a hour drive.

• Doncaster, Sheffield, Leeds, York and Manchester accessible within a two hour drive.

• London can be reached by rail in less than 2 and a half hours

• Hourly direct rail service from Cleethorpes to ManchesterAirport, through Scunthorpe and Sheffield

• Easy access to Humberside Airport which provides scheduled and charter services to various destinations including daily services to Amsterdam which connects Humberside to 800 international destinations. HumbersideAirport also has the 4th largest heliport in the UK.

• Daily aviation connections to Heathrow via Leeds-Bradford Airport

• South Humber Gateway Ports (Grimsby,Immingham & Killingholme) which are the busiest in the country by tonnage (Source: UK Freight Port Statistics, 2016). This provides direct sea access to mainland Europe and opportunities for coastal sourcing from all ports in the UK

• Four inland ports (Flixborough Wharf, Grove Port, Gunness & Keadby) on the River Trent and two wharves on the River Humber (Barrow Haven & New Holland).

2.2. Utilities and on-site infrastructure

The site has good connections to industrial utilities. The200MW electricity supply is connected to the NorthernPowergrid distribution network at 132kV via 3 90MVAtransformers, there is an extensive 33kV internal privatenetwork which distributes the supply. The site is connectedto the Northern Gas networks distribution network at twosupply points with an aggregate capacity of approximately

3m therms/day. There are also major connections to, andinternal distribution networks for, potable and industrialwater supplies and within the British Steel operational areasdemineralised water is also produced. British Steelconsumes a number of other utilities internally for theproduction of iron and steel which include Oxygen,nitrogen, argon, steam and compressed air. There arecomprehensive internal distribution networks for theseservices.

2.3. Supply Chain

2.3.1. British Steel logistics partners & capability

As the UK’s market leader in structural steel, British Steel hasvast experience of moving high volumes of material fromour UK plants to customers across the breadth of the UKand beyond. Collaborative partnerships with XPO Logistics,P&O, DB Cargo and Freightliner Heavy Haul underpin ourlogistics credentials for steel. Expertise and transportmanagement systems are deployed by our 3PL platforms.In the UK, this integrated approach yields over 99%schedule adherence.

As a significant exporter (1.5 million tonnes in 2016/17)British Steel has close working relationships with all of theTrent and Humber ports, including Immingham,Flixborough, Goole, Hull and beyond, engaging withinternational carriers such as Genesee & Wyoming.

British Steel Scunthorpe has the ability to handle complexloads, with extender trailers or bespoke wagonconfiguration for 108m long length rail. This breadth oflogistics capability and experience in the British Steel supplychain could easily be extended and adapted for thepurposes of a Heathrow logistics hub in Scunthorpe.

Working safely to move steel products is essential for bothBritish Steel and our logistics partners. British Steel’sindustry leading Load Restraint Guidelines for long steel,developed in Scunthorpe, are tested and engineered in-house. They are deployed by all our logistics supply base,with close collaboration with VOSA & HSE.

British Steel moves over 10 million tonnes of material every year.


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HUMBER

Travelling time (hrs) from the Humber

Road travel times and rail, sea and air connectivity

Scunthorpe region, road, rail and air connectivity


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2.3.2. British Steel supplier partners & capability

British Steel spends over £320mpa on contracted outgoods and services and has a well-developed, robustsupply base that includes a range of longstanding and newsuppliers. Many of these suppliers have onsite or localestablishments, and are well respected global marketleaders in their area of expertise this provides British Steelwith immediate access to required goods and services thatcould play a pivotal role in the delivery of the HeathrowAirport project. The range of our supply base providesaccess to skills, expertise and resource that includes (butnot limited to) engineering (civils, electrical. mechanical),labour, heavy plant and equipment, logistics, Wasteremoval and various contacts within the cement andtarmac

industry. Our processes also make us a key raw materialprovider to two of our onsite customers (Tarmac andFrancis Flowers), producing road making materials fromone of our bi-products such as tarmac and cement. Thebenefits of onsite and local presence within our supplybase makes the resources we can access cost effective andhighly competitive and the nature of our operations hasdriven us to partner with suppliers that can react in aflexible manner to our production demands.

2.3.3. British Steel customer partners

British Steel’s customer base will play an important part inthe Heathrow Expansion value chain. Constructioncustomers such as Severfield, William Hare, Billington,

Caunton and Elland provide the bedrockof steelwork fabrication to the UKconstruction market. Working inconjunction with these customers, BritishSteel has helped to build Victoria Novaand Wimbledon Court 1 Phase 1;Pinewood Studios and IKEA Sheffield,demonstrating the integrated capability ofthe UK steel and fabrication supply chain.

British Steel Rail provides over 95% ofNetwork Rail’s track demand, servicingdirectly from our Rail Service Centre inScunthorpe, so is perfectly positioned tosupply the rail and sleepers for Heathrow’snew rail hub.

2.3.4. North Lincolnshire &Humber supply chain

Hundreds of dynamic businesses alreadytake advantage of the excellentconnectivity and skills that are prevalent inthe Humber region. North LincolnshireCouncil, the Humber LEP and Hull andHumber Chamber of Commerce are allable to support the Heathrow Expansionproject by connecting local businesseswith project requirements, once these areclearer.

British Steel current supplier locations


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3. CONCEPT MASTERPLAN

3.1. Land Available for Redevelopment

There is a significant residual land opportunity of 525 acreswithin an otherwise operational site.

The residual land available is large and flexible enough tosupport a significant single development such as theHeathrow Expansion Logistics Hub, or a number ofsmaller schemes developed in phases over alonger timeframe.

3.2. Masterplan Overview

The concept masterplan illustrates a landuse option which exploits the potential ofthe available land, buildings and theexisting on-site road and rail connections.It demonstrates the capacity that exists onsite to accommodate a mix ofdevelopment options with a range ofbuilding sizes, the largest of which beingthe Bloom and Billet Mill at 160,000msq,to enable a wide range of business scalesand activities to be performed on site.

The masterplan includes three types ofalternative development options:reconfiguration/reuse of existing buildings,(notably the Bloom and Billet Mill),demolition and redevelopment of thepreviously occupied Plate Mill Site, and thedevelopment of Redbourn and DawesLane vacant land.

The Masterplan also includes some keyinfrastructure improvements such as thecreation of new site access roads and arail hub to link the new development tothe mainline rail network.

Concept Masterplan


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3.3. Key Development Sites

3.3.1. Bloom and Billet Mill

The remodelling of the Bloom and Billet Mill is a keycomponent of this concept masterplan as it presents ahuge opportunity for the reconfiguration of an existinglarge building to meet a wide variety of industrial andbusiness needs. Such is its scale, that the Bloom & BilletMill length is ‘one third’ of Heathrow’s Southern Runway.With direct road and rail connectivity to various sections ofthe building, it can either be utilised in future for a singleundertaking or sectioned to allow a number of different orconnected uses. The length of the building and the heavylifting capability could suit linear processes, such asconstruction fabrication or pre-casting.

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Redbourn andDawes Lane site

Bloom andBillet Mill

Plate Mill site

HeavySectionMill

Masterplan Development Sites

The Bloom and Billet Mill length is one third of Heathrow’s Southern Runway


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Bloom and Billet Mill Development Potential


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3.3.2. Redevelopment of the Plate Mill Site

The concept masterplan encompasses the current plan todemolish the Plate Mill and redevelop the land area, whichis a quarter of the footprint of Heathrow’s Terminal 5. Themasterplan proposes a new building of 42,000msq. Thissignificant building will have excellent links to the existingon-site road network as well as direct access to the railnetwork allowing for use as a state of the art, centraldistribution warehouse.

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Plate Mill Site Redevelopment Layout Plan

Plate mill building and developable land is a quarter of the footprint of Heathrow’s Terminal 5


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Plate Mill Site Redevelopment

3.3.3. Redevelopment of Redbournand Dawes Lane Land

Redbourn and Dawes Lane sites provide extensive landopportunities and in the masterplan include 91 buildingsranging from 910msq to 42,000msq for a whole host ofpurposes.

Proposed redevelopment ofRedbourn and Dawes Lane land


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3.3.3.1. Rail HubThe need for a new Rail Hub has been identified in theconceptual masterplan to connect the large area of newdevelopment, within the Redbourn and Dawes Lanedevelopment site, to the mainline rail network. This willenable all businesses and processes, whatever their size, to

utilise rail for their transportation and logistics needsthrough the use of collective rail containers. This will bekey to enabling the logistics hub to meet carbon reductiontargets and in particular, Heathrow’s corporate sustainabilityagenda.

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Proposed new rail hub.


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4. TRANSPORTATION NETWORKS AND CONNECTIVITY

4.1. Highways and Road Infrastructure

Site access by road is facilitated by 4 main entrances,with the majority of haulage encouraged to useGate A, sited on the A18, 2 miles from M180Junction 4. The masterplan indicates thatthis will continue to be the main heavygoods access for the proposed newdevelopment as the design of thejunction was intended to support apotential future increase in road traffic.

The masterplan envisages an improvedsite access gate on the western boundaryof the site which will provide non-HGVtraffic with direct access to thedevelopment site via Dawes Lane, thusreducing pressure on other site accessgates and avoiding the need for travel onsite access roads within the operationalareas of the site. An improved highwaysjunction is also currently underconsideration at the Brigg Road/DawesLane junction which will see traffic lightsreplaced by a roundabout to reduce off-site traffic congestion in this area.

An extensive road network already existsacross the site, however the masterplanproposes a new section of access roadrunning parallel to the western boundaryof the site to enable alternative roadaccess to the development site via Gate A.New road layout is also proposed withinthe development site.

Transportation networks and connectivity


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4.2. Rail Infrastructure

Pivotal to the development of this masterplan is the needto maximise the opportunities provided by the site’s railconnectivity which is seen as one of its key assets. TheScunthorpe site includes over 100 miles of rail track,maintained to a very high standard by British Steelsspecialist sub-contractors. British Steel currently operateover 20 locomotives on-site using an internal wagon fleetof approximately 300, capable of moving different products,hot and cold. Locomotives and wagons are all maintainedin the extensive heavy rolling stock facility on theScunthorpe site.

Up to 10 million tonnes of iron, steel and raw materials peryear are moved on our rail network, coordinated by 2 on-site controllers to ensure safe and effective movements. Upto 18 trains per day currently enter and leave the NetworkRail Infrastructure with capacity to do substantially more.

British Steel has its own segregated Road Rail Hub on sitefeaturing 3 separate siding configurations with a total of 8roads available for loading/unloading trains. This areadirectly links to the exchange sidings with access to theCleethorpes to Doncaster mainline and has capacity foradditional operations. Multi-modal capability extendsfurther, with British Steel’s on-site container operationcapable of storing over 400 20ft or 40ft shippingcontainers. This facility can accept loaded or emptycontainers via road or rail, before transfer via road to ourwarehousing areas where the containers are stuffed andsealed before despatch via road or rail. Currently capacityexists to receive and despatch over 100 containers per dayby road and 2 trains per day by rail.

In addition, a new Rail Hub is proposed within themasterplan in order to ensure that any new developmentmaximises the potential of this on-site rail connectivity.

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Excellent on-site road and rail connectivity


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Potential highways junction upgrade.

4.3. External Transport Networks

A number of possible enhancements to external transportnetworks are currently being explored by NorthLincolnshire Council which could lead to significantimprovements to the regional and national connectivity ofthe already well connected Scunthorpe Site. Theseenhancements include:• Completion of gauge enhancements to provide W10-12clearance along the line from Immingham to Doncaster to allow high cube containers to be transportedby rail to and from the ports from March 2019• The production of a feasibility study into the introductionof a direct Grimsby-London service via Barton andScunthorpe• A target of 2 trains per hour from Scunthorpe to Sheffieldwith a reduced journey time of 30 minutes.


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The developable land and re-usable buildings are alllocated entirely within the British Steel site which in turn is held under a number of registered freehold titles.

This ownership structure results in complete flexibilitybeing achievable in the direction which any potentialdevelopment may wish / need to proceed subject only tothe approval of the company and its key internal andexternal stake holders.

Development models which may therefore be consideredcould include but are not limited to:1 Outright sale of the development land to third party

developers with or without prior grant of planning consent

2 A joint venture with a chosen developer to build out and retain the asset as an ongoing business opportunity

3 The formation of a JV to building out the site with the view to a disposal upon completion to property investment vehicle.

5. DELIVERY MODEL OPTIONS

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6. LOGISTICS AND PLANNING

6.1. The local and regional logistics sector

The Northern Powerhouse Independent Economic Reviewhighlights the logistics sector as one of three key enablingcapabilities needed to support the prime growthopportunities in the North. From a more local perspective,the most recent data available illustrates the importance ofthe logistics industry to the local economy and as a result,demonstrates the capacity that exists in the region todeliver a logistics hub of this size and scale.

6.2. The local supply chain

North Lincolnshire offers strategic access to road, rail, seaand air networks for logistics firms, resulting in an aboveaverage proportion of logistics firms in the region. Currentlywithin the North Lincolnshire region 6.9% of all businessesoperate within the logistics sector and the sector hasgrown by 30.8% over the last 6 years. The sectorcontributed £1.474m to the regions GVA, which equates to22.1% of total GVA-above the national average of 18.9%.The above average performance is attributed to the qualityof road infrastructure, proximity to key UK ports and theperceived value for money in the cost of land.

6.3. Sector Employment

The UK haulage industry is currently facing a shortage of45-50k HGV drivers . In North Lincolnshire however there isabove average employment in the transport and storagesector, with current figures confirming 6,000 peopleemployed in North Lincolnshire, which is 50% higher thanthe English average.

6.4. The Planning Policy ContextThe current adopted local planning policy for NorthLincolnshire consists of the Local Development FrameworkPlans (Core Strategy, Housing & Employment LandAllocations DPD) and the Saved Policies of the NorthLincolnshire Local Plan Adopted May 2003. The Scunthorpesteelworks is included within the settlement developmentlimit for Scunthorpe where new employment and industrialdevelopment, is supported to deliver economic growth. As such, outside of the normal planning restrictions andprocesses, there is nothing in local planning policy whichrules out a development of this nature on the site.

A new North Lincolnshire local plan is currently beingproduced which will eventually supersede existing adoptedplanning policy. This will review the land use allocationsand planning policies and implement policies to 2036.

NorthLincolnshire

Yorkshire and The Humber

England

All Employment in Transport and Storage Sector

Number % % %

6000 8.3 5.2 4.9


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BRITISH STEEL MASTERPLAN

Imagine thepotential...› to develop and invest in this site

› to be part of Heathrow’s Expansion

› to create jobs, grow skills and capabilities

› economic benefit for your business and our region

› for Scunthorpe to pioneer offsite construction

› beyond Heathrow, if the hub could also serve HS2, Cross Rail, Hinkley Point C and future UK Construction Projects

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› Prime location for connectivity - road, rail, ports, airports› Over 500 acres of land with development potential

Development areas

Rail infrastructure

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BRITISHSTEEL.CO.UKA | British Steel, Brigg Road, Scunthorpe, North Lincolnshire DN16 1BPT | +44 (0)1724 404040 E | [email protected]

This Masterplan was produced by British Steel in partnership with North Lincolnshire Council

British Steel contact |Gareth Beese, Strategic Development Director – ConstructionT | 07799 070371 E | [email protected]

North Lincolnshire Council Project Team contact |Lesley Potts, Head of Economy and growthT | 01724 297465 E | [email protected]

BUILDING STRONGER FUTURES

Care has been taken to ensure that the contents of this publication areaccurate, but British Steel and its subsidiaries and associated undertakings(having the meaning set out in the Companies Act 2006) do not acceptresponsibility or liability for errors or information that is found to be misleading.

Copyright British Steel 2018

British Steel UK Limited is registered in England under number 09438207 withregistered office at Administration Building, Brigg Road, Scunthorpe, DN16 1BP

british steel scunthorpe · british steel customer partners 8 2.3.4. north lincolnshire / humber...

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