Expansion promises economic rebirth (From The Northern Echo)

Expansion promises economic rebirth

8:25am Friday 22nd February 2008 in Support Our Port

Teesport's expansion marks the end of a three-year fight to bring thousands of jobs to the region. Business Editor Julia Breen reports

THE River Tees was once at the heart of the industrial revolution as a bustling economy grew up around it.

But the decline of the shipyards, steel, coal and other traditional industries meant it was hardly more than a dirty, redundant stretch of water during the Thatcher years.

The dawn of the 21st Century has seen a massive turnaround in the fortunes of the river and those on its banks, and the latest plans by Teesport will help put it at the centre of an economic resurgence in the region.

Three years ago, the owner of Teesport, Middlesbrough-based PD Ports, announced plans to rival southern ports by building a deep water container terminal on the river.

Instead of large cargo ships from the Far East calling at the congested ports of Felixstowe and Southampton, before sending smaller feeder vessels up to the Tees, or heavy goods vehicles up the motorways, PD wanted to bring those ships directly to the region.

The argument, said port development director Martyn Pellew, fitted exactly with Government targets to reduce the economic output gap between the North and the South, which stands at just under £30bn a year.

It would also ease gridlocked southern motorways by taking lorries off the roads and transporting containers by sea instead, reducing carbon emissions.

PD's plan to invest £300m in a terminal that can handle larger, deeper vessels from Asia, will see more major retailers using the port to ship in goods for distribution all over Northern Britain and south to the Midlands.

Mr Pellew appealed to the Government at the time to call a halt to southern port expansion and develop a national ports strategy, which would allow for more balanced expansion, giving ports in the North a chance to develop.

The expansion of the port is also critical to the region's thriving process industries. Between £8bn and £10bn of potential investment is expected to be made in the chemical and pharmaceutical industries in the next few years.

Because the port is such a crucial point - handling 65 per cent of the chemical and pharmaceutical sectors' goods for export - more than £5bn of the total could have been threatened if Teesport had not won approval for its scheme, the North East Process Industries Cluster (Nepic) said in 2005.

But the Government gave approval for two southern ports, at Felixstowe and Harwich, to expand, despite overwhelming public opposition from residents in those areas.

PD Ports' plans have sailed through the planning process, the only objection - from a rival port operator - being withdrawn last summer.

However, despite it trying to encourage the Government to "fast-track" its plans, the decision has taken two years.

And although its arguments to encourage shipping lines to use Northern ports fell on deaf ears in the corridors of Whitehall, retailers such as Asda have realised the benefits.

The supermarket built an import centre at Teesport in 2006 to bring in goods to a less congested, more efficient port.

Now PD Ports expects more retailers to follow Asda, creating a thriving distribution sector on redundant brownfield land at the port.

The scheme has met with overwhelming support in the region, with Teesside MPs Vera Baird, Ashok Kumar and Dari Taylor, the North East Chamber of Commerce, the Association of North East Councils, development agency One NorthEast and Tees Valley Regeneration all backing the plan.

Mr Pellew said: "We have to thank everyone who has supported our plans.

"They have all played a part in this "This is fantastic news, but we must not rest on our laurels.

"We still have to find funding for the scheme and look at options for upgrading the rail network so it can carry the larger size of container that we will be handling."

He said discussions had started with One NorthEast to look at funding for upgrading the rail links to Teesport.

He said that more detailed engineering work was being carried out for the new terminal, and that the earliest it would be built would be 2010, but it would more likely be 2011.

Jobs could be created on the docks, in warehouses and distribution centres, factories and in the supply chain.

Mr Pellew said: "There are potential extra jobs everywhere, from forklift truck drivers to the people who make the sandwiches for the forklift truck drivers."