PORT OF TYNE ANNUAL REPORT AND ACCOUNTS 2011

02/ANNUAL REPORT AND ACCOUNTS 2011
CHAIRMAN’S STATEMENT/03
STATEMENT BY
THE CHAIRMAN
2011 HAS BEEN
AN EXCEPTIONAL
YEAR FOR THE PORT
OF TYNE, NOT JUST
FINANCIALLY, BUT
ALSO IN THE FURTHER
PROGRESS MADE WITH
THE TRANSFORMATION
OF THE BUSINESS.
Turnover increased by 30% to £59.2 million,
EBITDA rose by 61% to £15.5 million and
Profit before Tax doubled to £9 million.
These are the best results in the Port’s
history. They are a tremendous achievement
and have come about as a result of the
changes and the investment in people and
Port infrastructure made over recent years.
I should like to highlight some of the
principal features in our performance.
There were some record performances
in the volumes handled across the five
business areas, particularly in cars,
containers, bulk cargoes and cruise and
ferries. As a result the number of vessels
entering the river also increased and
overall cargo tonnage rose by 66%.
There were two main reasons for this
improvement. This was the first full year
to realise the benefits of strategic
investments in infrastructure. This included
new facilities to handle and store the new
cargo of biomass; a third car terminal; and
an extensive dredging programme to take
the River Tyne to its deepest level ever
at 10 metres. As a consequence the river
is now able to accommodate 83% of the
world’s largest bulk carrier ships and over
96% of the world’s cruise ship fleet.
This was particularly pleasing in view of
the high priority given by the Board to all
these aspects of our work. These awards
mean that our activities are internationally
benchmarked and it is a great tribute to
all our management and staff that so much
has been achieved in the drive to change
the culture of the organisation.
The growth in business has lead to a
5% increase in our workforce since the
beginning of the year, creating a total
of 22 new jobs and apprenticeships. This
is the second year of our profit sharing
scheme. It has made a major change in
the Port’s relationship with its employees
enabling them to share in the success of
the business which they have created.
As will be seen, this has led to enhanced
rewards for the current year.
The Port has continued to support business,
the arts and communities in its operating
area, with a programme of community
engagement and sponsorship which has
benefited approximately 50 local
organisations this year. In addition, the
Port added £467 million to the GVA of the
North East region which in turn supports
almost 9,500 jobs, supporting the economic
growth of the region.
During the year there was one change on
the Board. I would like to thank Neil Mundy
who served as a very effective Chairman of
our Audit Committee and who has retired
this year. He has been replaced by Maxine
Pott who was appointed as a Non-executive
Director with effect from September 2011.
Later this year I shall be standing down as
Chairman of the Board. I have been a
member for almost ten years, seven of them
as Chairman. It has been an exhilarating
time. There have been many challenges,
but we have made enormous progress in
driving the Port ahead into the 21st Century,
and the fruits of that are now coming
through. I am optimistic about the Port’s
future and all the staff and everyone
associated with it have my very best wishes.
I am delighted that I shall be replaced by
Sir Les Elton. I am sure his knowledge of
the area, as the former Chief Executive of
Gateshead Council, and of the Port, as the
Deputy Chairman for the past five years,
will ensure that the progress of recent years
is continued.
“THE PORT’S AIM IS
SIMPLE: A VIBRANT
AND SUSTAINABLE
PORT OF TYNE.
2011 HAS MADE
A VERY POSITIVE
CONTRIBUTION TO
THIS AIM AND WE
ARE LOOKING
FORWARD TO AN
EQUALLY SUCCESSFUL
YEAR IN 2012.”
Second, and very importantly, the
business has continued its programme of
commercialisation and cultural change,
resulting this year in a transformation of
how employees are developed, recognised
and rewarded. After a number of years
of intensive work we are delighted the Port
achieved Investors in People status. We
also maintained the national standard of
ISO 14001 for best environmental practice.
On top of that work towards the national
standard for health and safety resulted in
the achievement early in 2012 of OHSAS
18001 for the whole organisation.
The Port’s aim is simple: a vibrant and
sustainable Port of Tyne. 2011 has made
a very positive contribution to this aim and
we are looking forward to an equally
successful year in 2012. This is entirely
thanks to the employees of the Port of Tyne
who in embedding the values of customer
focus, people focus and future focus in all
they do, have secured an exceptional year
and I thank them for their considerable
efforts and commitment.
Sir Ian Wrigglesworth
Chairman
2012