Full steam ahead at Leith Docks as shipping lifts Forth Ports revenue

Published on Thursday 28 August 2008 21:42

REVENUES at Forth Ports have risen by more than a fifth, buoyed by a "strong" performance from its shipping terminals.

Figures out yesterday showed that the firm's turnover rose by 21 per cent to 90.1 million, while the operating profit jumped by 26 per cent to 22.4m in the six months to 30 June.

Pre-tax profits fell by 25 per cent to 9m but Forth Ports said that reflected a 7.5m reduction in the value of Edinburgh's Ocean Terminal shopping centre, which took into account changes in commercial property yields.

The results came a day after Edinburgh Council approved Forth's outline plans to regenerate the capital's Leith Docks, building about 15,000 houses and flats spread across nine "urban villages".

The development – which Forth said could create up to 12,000 jobs – would be phased over the next 30 years, with Forth due to submit planning permission for the initial "hub" around Ocean Terminal and the first two "villages" before the end of the year.

Forth's project, which is awaiting approval from the Scottish Government, would include retail, industrial and leisure facilities, along with a secondary school and three primaries.

The group said it would delay about 40m worth of infrastructure projects – including road and sewage work – until at least 2010 because of the recent downturn in financial markets.

Charles Hammond, Forth Port's chief executive, told The Scotsman: "The regeneration of Leith is a long-term plan, over the next 30 years. During that period, we'll go through a range of economic cycles but we will continue to invest in our property.

"We will focus our spending on securing the right planning consents, some alterations to Ocean Terminal and some investments in securing the tram connection and on the environment.

"This is one of the key areas that needs to be developed for Edinburgh to expand and a key opportunity to grow the Scottish economy."

Forth – which is the UK's last remaining listed ports operator and has been the subject of much takeover speculation – said it was confident of its full-year financial prospects.

Hammond said he was "hopeful" his company's Tilbury port would be named as the east London logistic centre for the 2012 Olympics. He said Tilbury was the only site that could provide road, rail and sea access to the Stratford site and added that bricks for the Olympics site were already being moved by barge from Tilbury.

Hammond also pointed to Forth's strategic partnership with Scottish & Southern Energy to develop renewable energy projects at its ports.

Planning permission has already been granted for four wind turbines at Tilbury and Hammond said renewable energy would be incorporated into the plans for Leith Docks.

Shares in Forth Ports last night closed up 10p at 1,698p.