Germany-based freight operator DB Cargo (www.dbcargo.com) has opened a new £6 million steel logistics centre in the West Midlands.

Over the past 12 months, the company has more than doubled the size of its existing facility in Wolverhampton, which receives imported steel from Holland and Sweden.

The new ‘state of the art’ logistics centre is one of the largest investments in rail freight in the past five years; it will be used by some of the world’s biggest steel companies, including Arcelor Mittal, Tata Steel and SSAB.

DB Cargo UK’s CEO, Hans-Georg Werner, said: “This is a fantastic investment story for the UK. Here you have a large German-owned company willing to invest significant sums of money that will greatly benefit British and foreign businesses.

"This investment demonstrates DB Cargo UK’s commitment to being the first choice for rail freight in the UK — and our confidence in the resilience and sustainability of the international steel market.

"There is buoyant demand for steel from engineering and manufacturing firms in the area, and we are delighted to be in a position to work with our customers to help meet this demand.”

The new rail freight centre is adjacent to the West Coast Mainline and has the capacity to store around 48,000 tonnes of steel — the equivalent of 3,324 coils.

DB Cargo UK currently transports steel to the centre by rail from the ports of Immingham, Hull and Boston. It is then unloaded before being transferred onto HGVs for final delivery by road.