Work has begun on a new logistics hub at Sherford, near the A38, as defence company Babcock International invests in its operations in Plymouth.

South Hams District Council marked the start of construction with Babcock at the 18.8-acre site, which is part of the Plymouth and South Devon Freeport.

The proposed Integrated Logistics Hub will centre on a new 30,000 sq ft building designed - about the size of 100 double-decker buses parked side by side - to support activity away from the dockside and increase Babcock’s operational capacity at Devonport.

The council bought the land from the Sherford Consortium in June 2025, using £3.4 million in Government grant funding alongside council borrowing. The borrowing is due to be repaid through business rates income generated within the Freeport.

The council has since entered into an agreement to sell the land to Babcock. The value of the sale has not been disclosed in the information provided.

The development forms part of a wider programme of investment by Babcock in its Plymouth facilities and the surrounding area.

The Freeport is intended to attract business investment through tax and customs benefits and strategically located development sites.

Cllr Dan Thomas, Leader of South Hams District Council, said the project would support the authority’s ambitions for economic growth and employment.

He said: “We promised to support a thriving local economy, create opportunities for good-quality jobs and build strong, resilient communities. By investing carefully and working with our partners, we are turning those promises into practical action that will benefit residents and businesses now and in the future.”

Cllr John Birch, the council’s Executive Member for Economic Development, Commercial Strategy and Governance said: “This is a significant and positive step for Sherford and the wider local economy. It will support new investment, create opportunities and help bring more high-quality jobs to the area.”

Neal Misell, Chief Executive of Babcock Nuclear, said the development reflected the company’s long-term commitment to the region.

“This demonstrates our long-term commitment to Plymouth and the wider region, developing the skills, capability and infrastructure needed to bolster the UK’s national defence resilience, while creating opportunities for economic growth and prosperity for future generations,” he said.

Babcock added that the hub would reinforce Plymouth and the wider region’s role in the UK’s defence industry, as the UK’s only Defence Freeport.