£5m scheme for ports to be gateway to future
ASSOCIATED British Ports (ABP) has unveiled plans to bring forward more than 1,000 acres of land across its UKwide portfolio for new employment development targeting the manufacturing and renewable sectors.
ABP, which operates 21 ports around the UK, has identified 14 strategic sites for development, including at Newport, Cardiff and Port Talbot.
Next year will see the release of further opportunities. All locations benefit from strong rail and road connectivity as well as renewable energy generation.
During the next 18 months, ABP has committed to spending more than £5m to make the sites ready for development, obtaining appropriate outline planning consents, technical understanding and carrying out essential land preparation. It will then look to developers to take projects forward.
ABP’s chief executive Henrik L Pedersen said: “Our ports – with their superb connectivity both domestic and internationally, together with established infrastructure – already play a key role in the UK manufacturing, supply chain and energy sectors.
“This initiative will enable a growing number of businesses to leverage our land, property partnering expertise and power capacity. We believe this can make a significant contribution to the country’s economic vibrancy and supply chain efficiency.
“ABP is a strategic partner for UK businesses assisting the country’s post-pandemic recovery and achieving the common goal of decarbonisation.”
The four Welsh sites encompassed by the initiative are:
ABP Business Park, Cardiff – 36 acres;
Atlantic Side South Dock & West Way, Newport – two sites of 73 acres and 18 acres respectively; and
Harbourside, Port Talbot – 85 acres.
In England it has identified port land at Hull, Southampton, Liverpool, Immingham, Grimsby and Ipswich, for development.
Bruce Robertson, head of supply chain and consumer advisory at CBRE, which is advising ABP on the initiative, said: “The country needs more distribution hubs adjacent to major conurbations with a good labour supply and which can connect into our road and rail networks. These ABP sites are superbly situated to do just that. The need for more warehouse space to fulfil online retailing – which is growing and was accelerated by the pandemic – plus ongoing labour shortages are putting unprecedented pressure on the UK’s supply chain.”
The UK currently has the third highest e-commerce penetration ratio globally at 24% with annual online spend of approaching £100bn. The online spending ratio is forecast to rise to 32% by 2025. It is estimated that for every additional £1bn of online spend around 1m sq ft of logistics space is needed to fulfil delivery.
Port-centric manufacturing projects have already seen ABP partner with a wide range of businesses to co-invest in bespoke facilities. And as the UK reshapes its energy generation strategy, port locations will play an increasingly important role in supporting the offshore wind industry.
Mr Pedersen added: “One of our biggest offshore wind projects is
Green Port Hull – a £310m state-ofthe-art production and assembly facility on which we partnered with the wind turbine supplier Siemens Gamesa Renewable Energy.
“Facilities off the south Wales coast will play a pivotal role in green energy generation in the Celtic Sea, and we believe our land development initiative can help anticipate future manufacturing demand for these facilities on the way towards a net zero carbon country.”
ABP recently launched its plans for south Wales in its Future Ports: Wales Vision.
The strategy outlines a decarbonised future with a focus on Port Talbot.
As well as Port Talbot, Cardiff and Newport, it also has port operations in Barry and Swansea.
ABP said it recognises they will now need to play a pivotal role in Wales’ transition to a low carbon economy.
Andrew Harston, director of ABP Wales and Short Sea Ports, said: “We
need to imagine a changed world, understand its opportunities, and focus on the outcomes we need.
“We cannot make hard and fast predictions, but we can sketch the outlines of what needs doing. We need a new approach to realise the huge potential of Wales’ strategic port locations; to build the foundations of a new cycle of innovation and prosperity and time is of the essence.”
ABP said it is keen to seize the potential to create a floating offshore wind (FLOW) centre of excellence in the Celtic Sea. It said its Port of Port Talbot is well positioned to do so a it benefits for the required deep waters. The port operator said that Port Talbot also has brownfield land ready for development, good rail connections, proximity to steel, marine and aggregates, and access to thousands of skilled workers.
The port is currently predominantly used for imports of coking coal, minerals and ores for Tata’s Port Talbot steelworks. ABP plans to
work with the steel giant and others to make its vision a reality.
Chairman of the Tata Steel UK board, Sandip Biswas said: “The port is a vital connection for us allowing the direct import of raw materials for steelmaking.
“We are excited to see ABP developing its vision for the future and look forward to working closely with ABP to realise these plans. It is only by working together in partnership that we can all develop a better, more sustainable world for the future.”
Simon Brown, ABP’s divisional port manager for Wales and the south-west of England, said: “We know that ports can’t make the changes alone. It will be necessary to develop a shared vision based on new ways of working between business, government, academia and communities.
“Greater collaboration will make sure that we share risks, rewards, and intelligence, and deliver better outcomes for the economy, the environment and our societies.”