Forth Ports on course despite stormy times

Published on Friday 31 October 2008 09:02

PORT operator and property firm Forth Ports today said that trading in the first nine months of years is in line with expectations.

The Edinburgh-based company, which runs the five ports on the Firth of Forth and the commercial ports at Tilbury on the Thames and Dundee on the Firth of Tay, also said container volumes at Grangemouth have been well ahead of last year.

Although it has experienced some downturns in trade, particularly construction materials, there has been an increase in agricultural, food and drink and oil and gas sectors.

It also said that it is continuing to make progress on its plans for Leith Docks – the biggest planning application ever lodged with Edinburgh City Council.

In a statement, the company, headed by chief executive Charles Hammond, said: "Our ports business has good visibility, is underpinned by a significant level of contractual backing, broad range of cargoes and has a strong cashflow.

"We believe that it will continue to make good underlying progress in the remainder of the year."

The firm said it has "worked closely" with the Scottish Government to find a replacement for the Rosyth-Zeebrugge Superfast ferry service and has now signed a "letter of intent" with Norfolkline to provide a route for passengers and freight from next year.

In its property business, it said work is progressing on "The Hub" at Leith Docks, with the full planning application to be lodged with the council by the end of the year.

Property firm Jones Lang LaSalle has also been appointed to review the scheme and advise on marketing to potential partners.

But the company added: "Given that continued deterioration in market conditions will affect the value of our property assets, we are looking at further reductions and deferrals in property related spend.

"Further spend will be focussed on building value through achieving planning consents, creating income generating opportunities and fulfilling pre-existing commitments."

Earlier this year, the firm said that the 30-year masterplan for the area around Leith's docklands will realise long-term value for shareholders.

The proposals will see 15,000 new homes, as well as shops, offices, parks, schools and a cultural quarter, created on the dockland site over the next two decades.

The development includes an extra 16,000 square metres of retail space around Ocean Terminal. The biggest planning application ever to come before the council, the proposals will see nine "urban villages" created.

But the proposals drew criticism from Andrew Murphy, chairman of Essential Edinburgh's business improvement district and managing director of John Lewis in Edinburgh and Aberdeen. He said the development would endanger the growth of the city centre.