Teesside Airport’s Southside Business Park takes off with first landmark industrial unit
Teesside International Airport has reached a major milestone in the delivery of its £200 million Southside Business Park with the completion of Unit D, the first operational building within the flagship employment development.
The £6.5 million project was procured via the Medium Works Framework, which we manage on behalf of contracting authority, The Education Alliance Trust, and delivered by GMI Construction Group Plc (GMI), which brought its experience of complex industrial, infrastructure and live operational environments to the first phase of the development. The framework provided a compliant and efficient route to market, enabling Teesside International Airport to appoint an experienced contractor quickly while maintaining confidence in programme, quality and value for money. The framework enabled Teesside International Airport to engage GMI early in the process. Working collaboratively with the Pagabo procurement team, the client and project team, GMI helped develop the construction strategy, review buildability, coordinate airport interfaces and establish a clear approach to logistics, sequencing and risk management via early collaborative engagement.
The completed 25,000 sq ft steel-framed logistics facility, together with associated infrastructure, supports the airport’s long-term vision to create a thriving hub for logistics, manufacturing and commercial growth, helping to drive inward investment and employment across the region.
Supporting efficient procurement through the Medium Works Framework
The project was awarded via a Direct Appointment, providing a fast, compliant route to market that enabled the client to move quickly while maintaining full procurement compliance.
Using the framework allowed early engagement between the client and GMI, helping to align project objectives, establish delivery certainty and begin planning for the challenges of working within a live airport environment. The streamlined procurement process reduced time to site while giving the client confidence that an experienced contractor had been appointed to successfully deliver a complex infrastructure project.
Delivering within a live operational airport
Working airside meant construction activities were coordinated around live airport operations, with strict aviation safety and security protocols in place. Crane operations were planned and approved in conjunction with air traffic control, while deliveries, workforce movements and site logistics were carefully managed to ensure airport operations could continue safely throughout the programme.
The site also presented additional challenges due to its former military use, requiring unexploded ordnance (UXO) risk management and careful planning during groundworks to ensure safe delivery. GMI incorporated specialist surveys, controls and response procedures into the groundworks strategy, allowing these works to proceed safely and without disrupting the wider programme.
Delivering quality and wider community value
The completed development comprises a fully serviced industrial and logistics development comprising warehouse and office accommodation, service yard, access roads, drainage, utilities, landscaping and associated infrastructure.
Strong collaboration between the client, contractor and wider project team enabled the scheme to be delivered 1 week ahead of the contractual completion date, demonstrating the benefits of early engagement and effective programme management.
Through its project-specific social value plan, GMI generated more than £1 million in measured social value across the local area. This included over £735,000 spent with local suppliers, the creation of 12 local jobs, 31 apprentice weeks and engagement with 585 students through schools, colleges and employability initiatives, ensuring the benefits of the development extended well beyond the site itself.
Creating a strong foundation for future growth
As the first completed building within Teesside Airport’s Southside Business Park, Unit D establishes the benchmark for future phases of the £200 million masterplan. The outcome reflects GMI’s Exceptional Delivery approach, combining early risk management, collaborative planning, quality control and programme discipline to deliver for customers.
The project was delivered through GMI’s North East team, supported by regional suppliers, subcontractors and employment initiatives. By combining Pagabo’s compliant procurement route with GMI’s early engagement and delivery expertise, the project demonstrates how public sector organisations can move efficiently from ambition to operational asset while maintaining certainty around procurement, programme, quality, risk and local value.
Alongside creating a high-quality industrial facility, the scheme has laid the foundations for long-term economic growth, inward investment and employment opportunities across the region.
Victoria Ashby, Head of Development, Teesside Airport said:
“From the outset, GMI’s commitment to quality assurance, attention to detail and proactive value engineering were evident. Communication remained clear throughout the pre-construction and delivery periods, helping to ensure that our expectations were understood and delivered.
The project was delivered ahead of schedule, showcasing efficiency, dedication and willingness to go above and beyond. GMI adapted to change and provided innovative solutions throughout the delivery of the scheme.”
Tom Retallick, Senior Category Manager – Construction at Pagabo, said:
“The completion of Unit D is a great example of how the Medium Works Framework can help public sector organisations bring ambitious projects to life through a fast, compliant procurement route.
By enabling their early appointment, the framework brought together a compliant procurement route with GMI’s experience of delivering complex projects within live operational environments. GMI’s collaborative approach, detailed planning and management of the airport interfaces supported the safe and efficient delivery of the first building within Southside Business Park ahead of programme.
It’s a project that demonstrates not only the value of collaborative procurement but also the lasting economic and social benefits that well-planned investment can bring to a region.”
Gareth Jones, Group Managing Director at GMI Construction said:
“Delivering the first operational building within Southside Business Park was an important responsibility for our team. The live airport environment required detailed coordination, disciplined logistics and close collaboration with the client and airport stakeholders.
Early engagement through the Pagabo framework allowed us to identify and manage those risks before construction commenced, contributing to safe delivery, early completion and substantial local economic and social value.”
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