Forth Ports has taken 100% control of Tilbury Container Services (TCS) for £95 million (US$149m) from fellow shareholders DP World and Associated British Ports.
Forth will combine the deepsea and shortsea container facilities at the Essex port of Tilbury into one integrated operation, rebranded London Container Terminal.
The agreement puts the lid on any perceived clash of interests for DP World, which is due to open the new London Gateway container terminal, just down the river, towards the end of next year.
TCS, the closest deepsea container terminal to London, focuses on north-south trades and handles a high volume of reefer cargo, including Australian and New Zealand meat, and butter, cheese and fruit.
It benefited from the trend away from traditional reefer breakbulk shipments of fruit towards the use of reefer containers, and despite the tough economic conditions, turned in a modest 2.5% increase in throughput last year, handling about 320,000 containers.
Tilbury’s shortsea container terminal, next to TCS, saw a 7.5% increase in throughput last year, to 145,000 boxes.
Forth Ports CEO Charles Hammond said: “We are combining two growing businesses which together handle close to 500,000 boxes.”
The rebranded London Container Terminal will become the third largest box facility in the UK, offering a combination of shortsea, deepsea and coastal feeder operations, he added.
Forth Ports acquired its one-third holding in TCS in 1998. It will pay DP World and Associated British Ports close to £48 million each for their shares.
Flemming Dalgaard, DP World MD, Europe & Russia, said: “The offer from Forth made good sense to us and the decision was taken in line with the changing market dynamics in the liner industry, including the rapid escalation in vessel sizes.”
ABP CEO Peter Jones said: “The TCS facility lies within the Forth Ports freehold at Tilbury and it makes absolute sense for this business to be consolidated with Forth’s other container activity.”
source – ifw
