PORTS and shipping group PD Ports expects to grow steadily in the next few years thanks to developments in the region.

The Middlesbrough company, whose PD Teesport site is the UK's second largest port by volume, reported pre-tax profits of £7.7m earned between its flotation in July and March 31.

Turnover was unchanged, but group development director Martin Pellew said he was satisfied with that - volumes had fallen because of a temporary, four-week shutdown at the Ekofisk oil pipeline in September, which reduced crude oil exports by more than a million tonnes.

But he predicted steady growth due to increasing steel exports from Corus, and the completion of Huntsman's polyethylene plant, at Wilton, in two years.

Mr Pellew said the Biofuels Corporation's refinery on Teesside would also boost volumes once it went online.

If PD Ports can persuade the Government to fast-track the planning process for a deep-sea container terminal at the port, bringing 7,000 jobs, it will increase volumes even further.

The Northern Echo is supporting Teesport's Northern Gateway project through the Support our Port campaign.

Although PD's ports division had a challenging first half, this was partially offset by a better second half due to improvements at Teesport and the start of a new contract at Hartlepool. That improvement was expected to continue into the new financial year.

Chief executive Graham Roberts said: "The outlook for PD Ports for the year ahead remains favourable, with significant progress in our core activities expected. We have every confidence in the future of the business."

The company said it had made progress in using spare land at Teesport, with a subsidiary of US retailer Wal-Mart, Gazeley, applying for a 508,000sq ft import centre.

PD Ports recently integrated its logistics operation into the ports division, in a move expected to save £1m a year.

Anthony Platts, of Tees Valley stockbrokers Wise Speke, said: "The financial results are largely irrelevant in assessing PD Ports.

"The strategic review and subsequent streamlining of the businesses are of much greater importance at this stage. The group is set for explosive growth over the coming years.

"With Corus exports set to massively increase from next year, and Huntsman increasing export capacity, Teesport's importance cannot be underestimated.

"The Northern Gateway project for a deep-sea container terminal and the knock-on effect for support industries will be increasingly vital. Although matters are far from certain at this stage, the whole region will be crossing their fingers that this can be given the go-ahead."