Teesport buoyant despite problems

Sep 30 2009 by Karen Dent, The Journal

PROBLEMS in the chemicals sector are hitting Teesport's volumes but hints of greater stability in the steel industry mean the threat of further redundancies has lifted for the immediate future.

Operator PD Ports has shed around 50 jobs through voluntary redundancy but said it would not now have to cut the 120 jobs it forecast in May when it started a 90-day consultation with its 600 staff.

The picture has improved because Corus-owned Teesside Cast Products (TCP), a key customer, has managed keep operating despite its major buying consortium walking out midway through a 10-year deal.

However, closures of chemical operations at the Wilton International Centre and mothballing of other plants have affected the volumes being handled by Teesport – the UK’s third biggest port by volume. Chief executive David Robinson said: “Obviously, the closure of the Petroplus refinery will hit the volumes on the river, and there are the problems Sabic has been through.

“We’ve lost through the oil, chemical and steel sector about £12m of product over the last two to three years, especially in the last two years.

“The chemicals sector is one of our major customers – both liquid on the river and container numbers. Both those areas are struggling.”

However, PD Ports is now expanding its work with the retail sector. The first phase of Tesco’s 1.2 million sq ft import centre on brownfield land at Teesport opened last month and has started taking shipments of electrical items from the Far East.

Mr Robinson said: “We are doing a lot of work with the retail sector. The Tesco facility opened in August and is gradually starting to come on stream.

“That is a very new, big project and will allow the container growth. We’ve had a great start to the year on containers but there’s still a long way to go before the economy improves.”

The group is likely to shed a further 20 jobs early next year when work on ferry operator P&O’s ships is transferred from Teesport to Crewe.

And Mr Robinson said 50 posts were dependent on TCP continuing to operate. The steel slab producer exported 2.4million tonnes of steel through the port while working normally; it currently has work until the end of next month.

Mr Robinson said: “As long as Corus carries on in the form in which it is operating, there is not a problem.

“The Corus situation is still very much up in the air. But the short term – this month, next month – is fine.”

Corus said it could not comment about PD Ports.

A spokesman said: “We have orders confirmed until the end of October. We are still in a position where the business needs along-term solution. The conditions have been met to allow it to continue in the short term.”