Higher demand for coal from UK power stations has contributed to record revenues and pre-tax profits for the Port of Tyne, as the bulk cargo handled by the South Shields facility increased by 40 per cent.
Once famous for its coal exports from north east England’s deep mines, the Port’s main activities now include handling imported coal and wood pellets for power stations, and the shipment of Nissan and Volkswagen cars.
Port of Tyne is the UK’s biggest trust port, meaning it has no shareholders or owners, but is an independent statutory body, governed by its own unique, local legislation and controlled by an independent board. Any profit is ploughed back into the port for the benefit of the trust’s stakeholders – its users, employees and others with an interest in its operation.
Last year, the port handled a record 5m tonnes of bulk cargo – it is Europe’s largest handler of wood pellets – and a record 670,000 cars.
At the same time, the number of cruise and ferry passengers using its international terminal – which serves Thomson and Costa Cruises vessels – reached 600,000.
According to the port, these passengers are estimated to bring £54m into the north east’s economy a year – taking the port’s total contribution to the region’s “gross value added” to an estimated at £500m in 2012, and directly and indirectly supporting 10,000 jobs.
In the calendar year, group revenues rose to £63m, with cash flow from operating activities standing at £19m and pre-tax profit reaching £12m. All three were record figures. Since 2009, the port’s revenues have increased by more than a half while cash flow from operating activities and pre-tax profit have risen fourfold.
Port of Tyne chairman, Sir Les Elton, said: “The Port’s strategy to diversify and invest in infrastructure is now coming to fruition. The challenge now will be to maintain these levels of activity while also preparing for, securing and implementing the new business opportunities that lie ahead.”
Over the past decade, the port has invested £120m to create the infrastructure to grow its businesses, which include conventional and bulk cargoes, car terminals, cruises and ferries, logistics and a commercial property portfolio.
In January, the deepwater port announced plans to invest £180m in developing its infrastructure and facilities at Tyne Dock, South Shields, for handling, storing and transporting wood pellet for the power station market. Customers include Yorkshire-based Drax Group.
Port of Tyne has also identified the servicing of offshore wind manufacturing as a potential growth opportunity.
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