LONDON: There will be fewer coals to Newcastle in the coming years, said bosses at the Port of Tyne, who plan to offset falling volumes of fossil fuel by handling more wood pellets, oil & gas and renewables.
At its annual general meeting the UK port of the year will announce a string of impressive results that underline its vital role in supporting North-East jobs, investment and trade.
Ships more than a quarter of a kilometre in length will soon be a common site on the Tyne as a major investment programme will further increase the Port’s capacity, and capability, to handle the ever-growing size of cargo vessels.
The Port has continued to expand its infrastructure, with more than £11m in 2014 invested in new plant and machinery and initial expenditure on the £25m project to extend the Port’s main Riverside Quay by 125 metres to nearly 1km.
Further development opportunities exist at the former McNulty site, South Tyneside, and at Howdon Quay, as well as other land owned by the Port that lies within the North East Lep Enterprise Zone in North Tyneside. These sites will enable to Port to expand its capabilities in handling woodchip cargoes, as well open up opportunities in the oil & gas and offshore wind sectors.
In terms of gross value added the port’s benefit to the North-East economy during 2014 grew by 10 per cent to a record £560m, and the number of jobs it supports across the region soared to more than 11,200.
Overall cargo volumes handled on the River Tyne at 6.7 million tonnes, were the highest since 1989. Turnover dipped slightly by 3 per cent but profit before tax almost doubled to £10.2m after it overcame crane problems which dogged the business during 2013.
The one major blot in an otherwise sparkling set of results was a slump in coal volumes from 4.9m tonnes to 2.7m tonnes in 2014 – amid reduced demand from power-generators, the impact of carbon taxes, and lower prices associated with alternative fuel sources such as gas and oil. The volume of wood pellet almost doubled to 1.9m tonnes, but this increase was not enough to offset the reduction in coal.
Coal volumes slid and that looks to be a continuing trend,” said Andrew Moffat, the Port of Tyne’s chief executive, who was nevertheless delighted to see the port’s multi-million pounds investment programme reap rewards.
Record numbers of passengers were reported travelling on the daily Newcastle to Amsterdam route with 572k using the Port’s award-winning International Passenger Terminal.
