ASSOCIATED British Ports has revealed it is on course to post a year-end increase in turnover following strong demand at its 23 UK ports.

The company, which employs 3,000 people in the UK and US, and boasts Whitby among its stable, said trading had been buoyant across all of its main businesses.

ABP said group turnover for the year to December 31 was expected to increase by eight per cent, while underlying profit was likely to be at the ''upper end of current market expectations''.

The group said its strategy of disposing of non-core assets, which included the Southampton-based ferry and towage business Red Funnel Group earlier this month, was expected to generate profits alone of around £12m.

A spokesman for ABP said: "Business at the UK ports has continued to develop well, benefiting from the organisational changes put in place last year.''

Growth areas for ABP have included unit-load traffic, particularly in roll-on roll-off containers and vehicle imports and exports.

Tonnages of oil have also increased along with imports of coal and forest products.

In May Scarborough Borough Council pledged its continuing support for Whitby's cargo trade.

Since that time it has been working closely with ABP to promote the facilities at Whitby Harbour, seeking new cargo business for 2001.

The council's main concern is the effect on Whitby's economy of cargo trade, and it has promised to make every effort to retain the traditional cargo trade.

A spokesman for the council said: "The search for new trade continues."

The company, which also runs famous ports across the whole of the UK including Grimsby, Hull, Cardiff and Plymouth, added turnover and operating profit at its American ports and transport division Amports were substantially ahead of last year.

The good trading figures follow ABP's disappointing full-year figures last February, with pre-tax profit down from £110.6m to £32.8m. The announcement today cheered the City with shares in ABP rising by 14p, to 347p in early trading before falling back.