Associated British Ports

ABP SOUTH WALES RECORDS RISE IN PORTS� TONNAGE
During the first half of the year, Associated British Ports� (ABP) South Wales Ports � Cardiff, Barry, Newport, Swansea and Port Talbot � saw a 7 per cent increase in total port tonnage handled. This was driven by growth in coal and iron ore imports for Corus at Port Talbot, following the refurbishment of Corus�s blast furnace number five. There was also a rise in volumes across other key cargoes and significant new business wins resulting in over �7 million worth of investment by ABP, announced during the same period. The growth in existing volumes and new business wins continue to strengthen the performance of ABP�s South Wales Ports.

There was a 24 per cent growth in timber volumes, with more to follow from the new agreement reached between ABP and Saint-Gobain Building Distribution, part of the French multinational Saint-Gobain Group, underpinned by ABP�s �4.6 million investment in new storage facilities at Newport. Further improvements in timber volumes are also expected on the back of a �0.8 million investment by ABP to expand timber-pallet production operations at the Port of Barry for Scott Timber � the UK�s leading pallet manufacturer. Additionally since March this year, Cardiff has begun handling woodchips for Tilhill Forestry Ltd � a wholly-owned subsidiary of UPM-Kymmene, one of the world�s leading paper companies � building on the business already handled for them at Swansea.

Scrap metal handled during the first six months of 2003 has nearly doubled compared to the same period last year. ABP�s �3.5 million investment, to be made at Newport on the back of a 20-year agreement with Sims Group, is expected to further boost volumes.

New investment in excess of �2.5 million in steel-handling facilities at Cardiff and Newport was announced in the first half of the year. At Cardiff, this was the result of two new customer contracts, including a 10-year agreement with Marshall Maritime Services to create a bespoke steel-importing facility and a five-year agreement with Duferco UK Ltd to modify an existing port warehouse. At Newport, �0.8 million has already been invested in a new mobile harbour crane, following a three-year agreement with Corus. On the back of this agreement, both Newport and Swansea will handle export steel-coil shipments for Corus.

The volume of unit load cargo handled has also risen, which is attributable to the success of services operating from South Wales to Ireland. At Cardiff, Coastal Container Lines� established weekly services have contributed to an 11 per cent rise in the number of containers handled. Roll-on/roll-off traffic handled predominantly by Swansea Cork Ferries has grown by 7 per cent, and passenger numbers posted a 13 per cent rise on the dedicated service that operates between Swansea and Cork in Ireland.

The upturn in total port tonnage across the ports was offset by a downturn in the volume of premium-priced slab imports handled at Newport and Swansea. Despite this, ABP has a demonstrably strong and resilient ports business in South Wales, as Budha Majumdar, ABP Port Director, South Wales Ports, explains:

�ABP�s ports in South Wales continue to benefit from the steadfast investment strategy adopted by ABP in growing its ports business and in the continuing diversification into different trade sectors not associated with traditional business. By diversifying into other trade areas, we are able to capitalise on the changing needs of the shipping industry and bring real, long-term gains to the South Wales ports industry and the regional economy.�

UK Dredging (UKD), ABP�s dredging subsidiary, continues to win new contracts and grow its client base, while providing a cost-effective solution to the maintenance-dredging requirements of ABP ports. The introduction of the new dredging-support vessel UKD Sealion, which was commissioned in March this year, has also added to the versatility of the six-vessel strong UKD fleet.

In addition to its established contract with Danish dredging contractor, Rohde Nielsen, UKD has recently won a long-term dredging contract with Forth Ports plc. This work is in addition to shorter �one-off� contracts which, since the beginning of the year, have included work for the Port of Tyne, Port of Bristol, Portsmouth City Council, Port of London and for Edmund Nuttal at the Humber Sea Terminal.

3rd September 2003

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