Growing interest in the port-centric logistics concept has led senior PD Ports executives to predict bullish 2009 volumes as possible buyers circle the company, now officially for sale.
Commercial director Graham Wall predicted a 27% growth in container volumes at Teesport in the financial year which begins on 1 July, despite the recession. The port has seen an 8% decline this year.
The company expects the new Tesco distribution centre at Teesport to be a major source of cargo when it opens on 17 August, with 160,000 pallet spaces generating additional container imports through the port.
Asda is also expected to increase its throughput at the port, while a series of other deals are in the pipeline.
"We’ve secured a deal with a major 3PL that is going to confirm another 17,000teu through the port, " said Wall.
"Logical Link and East Coast Feeder are also driving volumes. Then there are smaller port-centric logistics deals we’ve done, for instance with Tailors of Harrogate, where we’ve secured a contract for 1,000 containers a year coming through Teesport.
"We’ve also secured a deal with Containerships, which acquired Contaz, and we’re now deemed as the Containerships transhipment hub in the UK, which we expect to develop another 20,000teu with their advancement into the Mediterranean.
"If you look at the Felixstowe, Southampton, and Thamesport scenarios:
they’ve been affected by the global downturn in business, but we’ve locked-in key clients that have to import."
PD Ports is for sale following Australiabased owner Babcock and Brown filing for administration in March.
Wall expected the buyer to be a financial entity, with the sale due to be completed by autumn.
Despite uncertainty over its future ownership, executives remain confident that the planned 1.5m teu Northern Gateway development will proceed, with phase 1 expected to begin operations in mid-2013.
Babcock and Brown has given PD Ports approval to spend £700,000 (US$1m) on ground investigations that will allow it to make an accurate assessment of construction costs.
Wall explained that six shipping lines and four major retailers/industrials had issued letters of intent expressing interest in shipping through Northern Gateway.
He added that the group was in discussions with terminal operators, shipping lines and other investors regarding joining the project.
He said: "We’ve interest from three major terminal operators, one of which made an offer that we weren’t in a position to accept because of the sale process. It was a very good offer from a very well known operator. We could be in a confident position where we have multiple offers."
BBI Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
