Laing O'Rourke tipped for £400m London Gateway project

Insiders say Laing O'Rourke is closing in on the first package of work on the massive London Gateway project.

The £1.5bn Dubai Ports scheme has been divided into two deals - the first is the development of the port and the second the construction of a logistics park.

Sources say Laing looks well-placed to sail away with the £400m ports scheme, leaving in dry dock the other two contenders - a Nuttall/Van Oord joint venture and solo bidder Costain.

One source said: "Costain looked favourite after recently picking up the £150m Felixstowe Port contract, but it seems as though the firm has been trumped this time."

Work on site is expected to start late this year, with the entire project likely to be finished in time for the 2012 Olympics.

The first package of work centres on the construction of a new deep-sea container port and the scheme also involves dredging and reclamation tasks, along with road and railway work in the area.

The London Gateway will be built on the north bank of the Thames near Thurrock, Essex, on the site of the former Shell Haven oil refinery.

The plans call for a 2.3km-long container quay with seven deep-water berths accommodating the world's largest container ships.

The other part of the project centres on what will be Europe's largest logistics park, offering 950,000m2 of space.