Port of Tyne in Growth Mode (UK)
Port of Tyne has reported 2010 end of year results reflecting a significant return to growth following the recession of 2009.
With chairman Sir Ian Wrigglesworth and chief executive officer Andrew Moffat at the helm, the port has seen some of the best results for some time in all five of its business areas.
These encompass conventional and bulk cargo, car terminals, cruise and ferries, logistics and estates.
At its annual event for stakeholders, Andrew Moffat said: “The port is an indicator of business and trade generally, and we have benefited from both the developments in the energy markets and car manufacturing, and from the organisation’s ability to identify and exploit new market opportunities.
“We have also made major investments in infrastructure to be able to secure new business opportunities.
“The huge contribution made by my management team and all employees of the port has also been very significant in enhancing and improving the performance of the business.”
Turnover during the year increased to £45.5m. A record level of earnings before interest, taxes, depreciation and amortisation (EBITDA) was reported in 2010, increasing by 45% to £9.6m. Cash flow from operating activities more than doubled to £8.9m and profit before tax was double that of the previous year, rising to £4.4m.
The economic impact the port has on the region has also increased. In 2010 the port was assessed to be worth some £421m to the economy of the North-east in gross value added – and this supported some 9,000 jobs.
The spending effect of almost 600,000 cruise and ferry passengers using the Port of Tyne International Passenger Terminal was estimated to be worth around £44m to tourism and retail in the region.
Capital expenditure incurred in 2010 totalled over £16m, mainly as a result of investment in handling, storage and transportation facilities for a new cargo – biomass, in the form of wood pellets – for use in power generation.
Other major investment was in the development of a third car terminal, infilling the former Tyne Dock to create a further 14 acres of useable land and initial costs for a new dredger.
At the same time the organisation has continued its major transformational programme of commercialisation and culture change.
In 2010 a profit share scheme was introduced for all employees and the business embraced the principles of Investors in People and achieved new quality standards.
“The way this programme has been embraced by the staff has had a significant impact on improving performance and driving up business and profit,” said Sir Ian.
“The dedication of the employees, the partnerships and working relationships with customers and other stakeholders, and the visionary thinking employed by the management team and the board combine to ensure the Port of Tyne remains vibrant and sustainable.
“We are looking forward to further developments this year to continue to build on this success and return real benefits for all of our stakeholders.”
Source: portoftyne, May 12, 2011;