PORT OF TYNE ANNUAL REVIEW 2012

PORT OF TYNEANNUAL REVIEW2012

ANNUAL REVIEW 2012INTRODUCTIONCHAIRMAN’S STATEMENTTHE PORT OF TYNE AT A GLANCECHIEF EXECUTIVE’S REVIEWPERFORMANCE AT A GLANCE2468BUSINESS AREASCONVENTIONAL & BULK CARGOCAR TERMINALSCRUISE & FERRYLOGISTICSESTATESMARINE SERVICES101214161820BUSINESS IMPACTSHEALTH & SAFETYENVIRONMENTMAKING A DIFFERENCE IN THE REGION222426BUSINESS OPERATIONA FOCUS ON OUR PEOPLEFINANCIAL PERFORMANCEMEMBERS OF THE BOARD28303201

ANNUAL REVIEW 2012CHAIRMAN’SSTATEMENT“WE HAVE BROKEN RECORDS FORRIVER VOLUMES HANDLED DURING2012, A WELCOME INDICATOR THATTHE TYNE AND THE PORT CONTINUETO PLAY A VITAL ROLE IN THEECONOMY OF THE REGION.”2012 HIGHLIGHTS10,000JOBS SUPPORTED6%INCREASE IN TOTALVESSEL GROSS TONNAGE6.5MTOTAL TONNAGE OFRIVER VOLUMES£484MADDED TO THEREGION’S GVAI AM DELIGHTED TOREPORT THAT THE PORTOF TYNE HAS AGAINPRODUCED AN EXCEPTIONALFINANCIAL PERFORMANCEIN 2012, DELIVERING THEBEST RESULTS IN ITSHISTORY FOR THE THIRDCONSECUTIVE YEAR.In my first year as Chairman,it is highly satisfying to be able toannounce such positive news not justfor the Port, but for the region and forUK PLC as a whole. With the countrylooking eagerly for signs of a changein the prevailing economic winds,the Port’s success provides a muchneededreason for optimism.The Port is an indicator of trends inthe wider global economy wherethe increasing demand for energy isdriving growth in the import of bothtraditional and renewable fuels.By foreseeing and planning for thiseventuality with investment in ourwood pellet storage and handlingfacilities, the Port has been wellplacedto respond to the requirementsof customers as their needs haveincreased. Looking forward, ourongoing investment in increasing ourlandholdings, including infilling theformer Tyne Dock, has created moreavailable land to allow us to plan formajor new developments in woodpellet handling, storage andtransportation facilities and furtherinfrastructure and facilities to supportthe offshore industries.We have broken records for rivervolumes handled during 2012,a welcome indicator that the Portcontinues to play a vital role in theeconomy of the region. In 2012, thebusiness that the Port generated hasdelivered just short of half a billionpounds of economic benefit to theregion, as well as directly and indirectlysupporting over 10,000 jobs.We were delighted to be recognisedas Company of the Year in the 2013North East Business Awards. Thisaward recognises not just the sheerscale of our economic impact, but alsothe dynamic and future-focussed wayin which the Chief Executive Officer,Andrew Moffat, and his managementteam have identified opportunities forgrowth and invested the Port’sfinancial and human resources intomaking them a reality. It is this strongvision for the future that continuesto drive the business forward, makingsure the organisation is well placedto play a significant role in both theexisting markets and new areas inoffshore wind, oil, gas and renewableenergy markets in the future.This focus on the future has beenone of the driving forces behind thesignificant organisational change thePort has undertaken in the last fewyears. By focussing on our people –developing their strengths and givingthem opportunities to grow and playa more active role in the direction ofthe business – we are beginning tomake better use of what is our bestasset – our great workforce. Thephenomenal financial achievementswe have made over the last few yearshave been delivered by their hardwork and determination and I wantto thank all of our employees for theirconsiderable efforts and their ongoingcommitment to the Port.I also want to thank my fellowBoard members for their continuedstewardship of one of the North East’sgreat engines of growth. I have beenably supported in my first year asChairman of the Port by my DeputyChair, Hilary Florek and as a Boardwe are all looking forward to the yearahead and the opportunities it presents.In 2013, our aim as always is to doeverything we can to make the Portof Tyne a vibrant and sustainableeconomic generator for the NorthEast and we count on our stakeholders– the business community, the localcommunity, government, ourcustomers and our employees -to support us in that aim.Sir Les EltonChairman03

ANNUAL REVIEW 2012PERFORMANCEAT A GLANCECARGO VOLUMES (%) TURNOVER BY BUSINESS AREA (%)2012: 6.5M TONNES2012: £63.0mKEY FINANCIAL INDICATORS2012: £63m6%2012: £18.7m2011: £59.2m2011: £15.5mINCREASE IN TURNOVER21%INCREASE IN EBITDA *2011: 5.3M TONNES2011: £59.2m2012: £11.9m33%2012: 30%2011: 26%2011: £9mINCREASE INPROFIT BEFORE TAX30%EBITDA * /TURNOVER %2012: £9.3m45%2012: £19.2m2011: £16.4m2011: £6.4mINCREASE INPROFIT AFTER TAX17%INCREASE IN CASH FLOWFROM OPERATING ACTIVITIESPORT OF TYNE BERTHSPORT OF TYNE BERTHSOPERATED BY THIRD PARTIESTHIRD PARTY BERTHS2012 20116.0m 4.89m0.21m 0.19m0.32m 0.25mCONVENTIONAL & BULK CARGOCAR TERMINALSCRUISE & FERRYLOGISTICS2012 2011£31.3m £27.9m£6.4m £6.3m£2.7m £2.1m£18.3m £19.3mESTATES£2.0m£1.6mTHIRD PARTY ACTIVITIES£2.3m£2.0m*earnings before interest, taxes, depreciation, and amortisation09

ANNUAL REVIEW 2012CONVENTIONALAND BULK CARGOSTRATEGIC INVESTMENTS IN DEEPENING THE RIVER ANDBERTHS CONTINUE TO PAY DIVIDENDS FOR THE PORT.N o 4UK RANKING FORCOAL HANDLING42%INCREASE IN TOTAL CARGOTONNAGE HANDLED£180MPLANNED INVESTMENTIN NEW WOOD PELLETHANDLING FACILITIESThe Port’s ability to accommodate 83%of the world’s bulk carrier fleet hasgenerated significant increased activityin the Conventional and Bulk Cargobusiness area, with volumes at theirhighest levels since 1989.The Port handled a record 5m tonnesof bulk and conventional cargo – anincrease of 42% due primarily to a risein coal imports. This was a result ofthe Port’s power generating customerstaking advantage of favourablemovements in the price of coal relativeto other fuels, such as gas. This wasalso helped by the Port now beingable to handle fully-laden, panamaxsizedvessels, thereby passing onsignificant cost savings to customersThe Port’s handling of the relativelynew cargo, wood pellet, has remainedstrong at 582k tonnes. Since 2010the Port has invested £23m in facilitiesfor storing and handling wood pellets –and is now a leading port in Europe forthis vital renewable energy fuel.To date these facilities have helpedthe Port handle over 1.6m tonnesof wood pellet.Uncertainty regarding national energypolicy has resulted in growth rates inwood pellet handling remaining steadyin 2012. Future prospects for thisemerging business look very strong.In recognition of this, the Port iscontinuing to invest in storage andhandling facilities for this specialist bulkcargo. Plans have been developedfor a further £180m investment indedicated storage, handling andtransportation facilities to be builtpartly on land newly-created by theinfill of Tyne Dock.The ongoing strength of this areaof the Port’s business supports theorganisation’s planned investmentin new jobs and apprenticeships,potentially creating an additional300 full-time equivalent roles by thetime the new wood pellet projectsare completed.Conventional & Bulk Cargo 2012 2011 Change Change%Turnover £31.3m £27.9m £3.4m +12%Total volumes (tonnes) 4,983k 3,508k +1,475k +42%“The ongoing strength of this area of the Port’sbusiness supports the organisation’s plannedinvestment in new jobs and apprenticeships...”11

ANNUAL REVIEW 2012CAR TERMINALSTHE PORT HAS HAD A RECORD YEAR IN ITS CAR TERMINALSBUSINESS FOR THE THIRD YEAR RUNNING.“The Port has retained its position as the UK’sNo.1 handler of vehicle exports, with an averageof 2,000 vehicles per day crossing the quayside.”Car Terminals 2012 2011 Change Change%Turnover £6.4m £6.3m £0.1m +2%Number of cars 670k 667k +3k +1%The Port has retained its positionas the UK’s No.1 handler of vehicleexports, with an average of 2,000vehicles per day crossing the quayside.The Port’s close working relationshipwith the Nissan plant in Washingtoncontinues to be a key influencingfactor in that success, and thecar manufacturer’s continuedachievements in winning productionwork on new models is a very positiveindicator for future growth.A noticeable trend in the Port’scar terminals business has beenthe 27% increase in car transhipmentvolumes being handled through theHöegh Northern Terminal, now in itssecond year of operation. The terminalstores vehicles from a wide variety ofoverseas manufacturers such asRenault, Subaru and General Motorswhich are not destined for the UK butfor onward transportation to marketsall over the world.The transhipment process providessignificant loading economies forshipping lines by ensuring that shipscoming into and out of the Port arefully-loaded. This helps to makesignificant savings on transportationcosts to the car manufacturers.In the increasingly competitive marketfor car imports across the UK, the Porthas been working closely with itscustomers to understand their plansfor growth. Ensuring that it has thenecessary infrastructure and facilitiesas customers’ requirements growwill enable the Port to continue todeliver the same high level of serviceand operation.The recent announcement by theRenault-Nissan Alliance that the Portof Tyne has been designated as itssole exclusive Port for all vehicleimports and exports in the regionis an indication that our strongcustomer focus is delivering realand tangible results.N o 1UK CAR EXPORT RANKINGNo 6EUROPEAN CARHANDLING FACILITY670KTOTAL NUMBER OFCARS HANDLED27%INCREASE IN CARTRANSHIPMENT ACTIVITY13

ANNUAL REVIEW 2012CRUISE AND FERRY“Passengers from across the North of Englandand Scotland are now starting to see the Tyneas an ideal point to start their cruise, bringingmore people to the region.”Cruise & Ferry 2012 2011 Change Change%Turnover £2.7m £2.1m £0.6m 29%Passenger numbers 2012 2011 Change Change%Cruise 62k 32k 30k 94%Ferry 536k 563k (27) (5%)Total 598k 595k 3k 1%Vessel numbers 2012 2011 Change Change%Cruise 36 20 16 80%Ferry 356 344 12 3%Total 392 364 28 8%2012 HAS BEEN THE PORT’S MOST SUCCESSFUL YEAR EVERIN ITS CRUISE BUSINESS AS THE ATTRACTIONS OF THE NORTHEAST REGION PROVE A MAJOR DRAW IN THIS GROWING MARKET.The Port of Tyne’s success in winningthe Cruise Critic award for the UK’sBest Port of Call 2011 has undoubtedlybeen a factor in business growth,with additional marketing on theback of this accolade attractingthe attention of some of the world’sbiggest cruise operators.Of the 32 cruises that are alreadybooked to call at the Port for 2013,several of these are with new cruisecustomers, such as Crystal Cruises,Hurtigruten and Costa Cruises,who are using the Port for the veryfirst time.There has also been a notable increasein the number of ‘turnaround’ cruises,where the Port of Tyne acts as thestart and end point of a cruise itinerary,rather than just a port of call.Passengers from across the Northof England and Scotland are nowstarting to see the Tyne as an idealpoint to start their cruise, bringingmore people to the region.Considered together with the wealthof visitors who use the Port’s ferryservices, almost 600,000 passengerstravelled through the terminal in 2012.Over 50% of these are inbound, withthe resulting expenditure estimatedto bring an additional £54m to theNorth East’s economy every year,supporting over 1,700 jobs inthe tourism industry.36RECORD NUMBEROF CRUISE VISITS95%PROPORTION OF THEWORLD’S CRUISE SHIPFLEET THAT CAN BEACCOMMODATED80%INCREASE IN CRUISEVESSEL NUMBERS£54MIMPACT OF THEINTERNATIONALPASSENGER TERMINALON THE REGIONAL ECONOMY15

ANNUAL REVIEW 2012LOGISTICSTHE HIGH QUALITY, CUSTOMER-FOCUSSED SERVICESOF THE PORT’S LOGISTICS BUSINESS CONTINUED TOBE IN STRONG DEMAND IN 2012.After 2011’s record high, 2012 sawa slight reduction in containervolumes. In 2011 the Port handledunprecedented volumes of car partimports for Nissan, but these reducedin 2012, mainly as a result of Nissan’sincreasing use of car part supplierslocally – a major good news story forthe region.The fruitful partnership between thePort and Nissan has been furtherstrengthened by the provision of anadditional 19,500 sq m of warehousingto meet the company’s storage needs.Trends in Logistics have includeda notable increase in the shipmentof recyclable products, such aspaper plastics and metal to Asia.Shipping routes to the Baltic Statesare also now presenting North Eastbusinesses with a direct route toemerging markets.Future developments in Logistics in2013 include the commissioning ofa new £6m gantry crane. This willadd even more capacity to the Port’scontainer handling operation and willhelp to enhance the level of serviceoffered to customers. The Port is alsoinvesting a further £1.5m in a newIT system.The Port continues to attract newcustomers for its high-qualitywarehousing and distribution services.After a 50 year gap, local tea companyRingtons made a very welcome returnto importing tea via the Tyne and thePort is now handling all the company’simport requirements as well as providingwarehousing and distribution services.With the Port’s ongoing relationshipwith Tetley and another tea customer,Spicer, now on board, the Port of Tyneaccounts for approximately 35% ofraw tea imports into the UK.“The Port of Tyne’s warehousing and distributionservices continue to attract new customers...”Logistics 2012 2011 Change Change%Turnover £18.3m £19.3m (£1.0m) (5%)Volumes 2012 2011 Change Change%Containers/TEUs * 64k 71k (7k) (10%)19.5kINCREASE IN SQ METRESOF WAREHOUSING SPACETAKEN BY NISSAN*Twenty-foot equivalent unit£1.5MINVESTED IN A NEWIT SYSTEM17

ANNUAL REVIEW 2012ESTATES“With an eye on the needs of potential businessinvestors, the Port has been further expandingits landholdings in 2012.”Estates 2012 2011 Change Change%Turnover £2.0m £1.6m +£0.4m +25%LAND AVAILABILITY AT THE PORT IS THE KEY TO SEIZINGTHE EMERGING OPPORTUNITIES IN THE OFFSHORE ANDRENEWABLE ENERGY SECTORS.Ensuring the business has sufficientland located as near as possibleto the mouth of the river is crucialto its success.With an eye on the needs of thesepotential business investors, thePort has been further expanding itslandholdings in 2012. North of theriver the Port has acquired additionalriver frontage at Howdon, along withland that had been in use duringthe construction of the second TyneTunnel, which has now been returnedand is available for operational use.As part of the ongoing strategic reviewof landholdings, the Port disposed ofland at the former upstream Spillerssite in Newcastle.South of the river, land has beenacquired at an adjoining site to TyneDock. The redevelopment of theformer McNulty site will allow the Portto extend the available river frontageat Riverside Quay to support offshorewind, oil and gas manufacturingand servicing as well as unlockingfurther potential regeneration projects,which could include the creation of apublic river viewing point and visitorinformation facility.One of the Port’s major developmentsites is situated north of the river inan area designated an Enterprise Zoneby the Local Enterprise Partnership(LEP). This site is ideally suited forthe build and assembly of turbinesfor the proposed offshore wind farmsat Dogger Bank, part of The CrownEstate’s Round 3 offshore wind farmdevelopment.The Port has been actively targetingdecision makers in the sector andits supply chain, activity which hasresulted in significant live enquiries.Ongoing discussions are taking placewith these potential inward investors,working with various GovernmentDepartments and the North EastLEP to secure what would be a majoreconomic boost for the region.The Port’s existing business unitscontinue to be in high demand, withover 60 tenants on the site employingan estimated 500 people.30HECTARES OF PORT OFTYNE LAND IN THE NORTHEAST ENTERPRISE ZONE40ACRE INCREASEIN THE PORT’SLANDHOLDINGSPictured: Left, IHC Engineering Business at the Port of Tyne19

ANNUAL REVIEW 2012MARINE SERVICESWITH THE VOLUMESOF CARGO HANDLED ONTHE RIVER AT RECORDLEVELS, THE ROLE OFTHE PORT’S MARINESERVICES HAS NEVERBEEN MORE IMPORTANT.For 24 hours a day, 365 days a year,the Port’s Marine Services team isresponsible for the safe navigationof vessels on the Tyne. The 40%increase in the number of largervessels using the Tyne has placedeven greater emphasis on theimportance of the safety and theefficiency with which ships arebrought into and out of the Port.In 2011 almost 50% of all bulk cargovessels coming into the Port of Tynewere panamax vessels – in 2012this has increased to 90%, with mostof the ships carrying imported coal.This has resulted in reduced vesselnumbers but a significant increasein vessel gross tonnage.The capital dredge that was undertakenin 2011 is the main driver behindthese increased volumes, with themaximum berth draft available nowup to 13.5m. However this means thatmaintaining the depth is essentialin order to deliver the business benefitsof the initial investment and the levelof maintenance dredging has increasedby 41% as a result. This has beenundertaken in part by the Port’s newplough dredger, the Sir Bobby Robson,owned by the Port of Tyne, whichcame into service in January 2012.This new vessel has been instrumentalin maintaining the necessary depthsin relevant areas of the river. Additionaldredging services and the removalof the dredged material from theriver has been undertaken by thirdparty contractors.Vessel movements on the Tyne 2012 2011 Change Change%Total vessel movements 4,242 4,732 (490) (10%)Total vessel arrivals 1,848 2,081 (233) (11%)Total vessel gross tonnage (000’s) 31,033 29,351 1,682 6%Material dredged from the River Tyne 2012 2011 Change Change%Maintenance dredging (m 3 000’s) 352 249 103 41%Capital dredging (m 3 000’s) - 446 (446) (100%)Total 352 695 (343) (49%)Destination of dredged material 2012 2011 Change Change%At sea 352 660 (308) (47%)To shore * - 35 (35) (100%)Total 352 695 (343) (49%)6%INCREASE IN TOTALVESSEL GROSS TONNAGE40%INCREASE IN PANAMAX-SIZED VESSELS HANDLED*This material was used in the Tyne Dock infill project41%INCREASE INMAINTENANCEDREDGING21

ANNUAL REVIEW 2012HEALTH & SAFETY60%REDUCTION INREPORTABLE INJURIESSTRIVING TO CREATE THESAFEST POSSIBLE WORKINGENVIRONMENT CONTINUESTO BE THE PORT’S NUMBERONE PRIORITY.49%REDUCTION IN WORKINGDAYS LOST TO INJURYFollowing the successful achievementof the internationally recognised healthand safety standard OHSAS: 18001certification in February 2012, thePort has continued its focus on drivingdown the level of incidents and injuriestaking place. A major internalcommunications campaign has helpedto drive home the message to staffabout the importance of the higheststandards of health and safetypractice in the workplace and thenumber of working days lost to injuryfell by 49%.The level of injuries reportable tothe Health and Safety Executive andthe Maritime and Coastguard Agencyfell from ten to four in 2012.However some of this reductionis as a result of the definition ofa reportable injury increasing from‘over three days’ to ‘over seven days’during the year. Using the previousreporting criteria there would havebeen seven reportable injuries in 2012.The other favourable statistic isthat the level of ‘near misses’ as aproportion of incidents rose to 58 –a positive indicator. The Port remainscommitted to maintaining the pressureon employees and other users of thePort to become even more health andsafety aware so that the statisticscontinue to improve year on year.Any incident or injury is simply onetoo many.The Port is also committed to followingthe guidelines within the Port MarineSafety Code, which has been developedto improve safety in UK ports andto enable harbour authorities such asthe Port to manage marine operationsto nationally agreed standards.It provides the standard againstwhich the policies, proceduresand the performance of harbourauthorities can be measured.The Port of Tyne’s compliance withthe Code is assured by the operationand audit, both internal and external,of the Port’s Marine SafetyManagement System.23

ANNUAL REVIEW 2012ENVIRONMENT24/7MONITORING OFPOTENTIAL IMPACTS1,383TONNES OF DEBRISCOLLECTED BY THECLEARWATERMANAGING AND MONITORING THE PORT’S ENVIRONMENTALIMPACT CONTINUES TO BE A KEY PRIORITY.The Port of Tyne is committed to theprevention of pollution and to theimplementation of a programme ofcontinual improvement andenvironmental monitoring. From takingsteps to reduce the environmentalimpact of its activities to supportingprogrammes to manage and maintainthe river’s appearance and ecosystems,the Port is taking a pro-active andco-ordinated approach.A focus on achieving and maintainingthe best standards of environmentalpractice has ensured the Port hasretained its ISO:14001 accreditation in2012. Extensive audit and engagementactivity with employees, customers,tenants and contractors has beenundertaken across the year to ensurethat the rigorous standards requiredfor ISO:14001 have been maintained,demonstrating the Port’s compliancewith all relevant environmental legislation.Within the Port’s day-to-day operationsthe focus is on reducing carbonemissions particularly in encouragingfuel efficient driving in the Logisticstransport fleet.Mitigating measures to ensure noiselevels are kept to a minimum includefitting reduced-sound reversing alarmsto site vehicles, overnight activitycontrols and operational modificationsapplied to handling potentiallynoisy cargoes.Air quality is monitored on and offsiteand is compared with other partsof the region to ensure it remains wellwithin national standards. Measuresto reduce potential dust emissionsfrom bulk cargoes are rigorouslyapplied and compliance is monitoredon a 24/7 basis.The Port sponsors the Clean TyneProject and operates the project’sspecialist vessel, the Clearwater,which is used to clear the riverof floating debris. With the morefrequent occurrences of climatechange related weather events suchas high winds and flooding, this areaof the Port’s services continuesto be in increasing demand.25

ANNUAL REVIEW 2012A FOCUS ON OUR PEOPLE2%IN THE TOP 2% OF ALLIIP SILVER STANDARDCOMPANIES4%INCREASE IN THE SIZEOF THE WORKFORCE13NEW APPRENTICESHIPSPLANNED IN 2013100%PROPORTION OFEMPLOYEES PARTICIPATINGIN THEIR OWN PERSONALDEVELOPMENT REVIEWIT IS ENTIRELY THANKS TO THE EMPLOYEES OF THE PORTOF TYNE THAT THE BUSINESS HAS ACHIEVED ITS THIRDSUCCESSIVE YEAR OF GROWTH.It is their hard work and commitmentthat has contributed to records beingbroken for the third consecutive year,an achievement that has taken placeagainst a background of intensivework surrounding the Port’s ambitiousplans for future development. It istestament to the clear future focus ofthe whole organisation that despite theexceptionally high levels of businessactivity, the workforce has not lostsight of the Port’s long term goalsand ambition.The outstanding business results for2012 were achieved at the same timeas the organisation continues toundergo significant cultural change.There were a number of significantdevelopments in the way that the Portfocuses on its people in 2012 as itcontinues to embed the principles oftraining, developing and rewardingemployees in a challenging, supportiveand safe environment.Following the achievement of theinternational standard, Investorsin People, for the whole of thebusiness in 2011, the Port has maderemarkable progress in implementingthe IIP principles of improvingperformance through people acrossall areas of its operation. This hasresulted in the Port achieving IIP’sprestigious Silver Standard in 2012,placing it in the top 2% of all IIP ratedcompanies and the only UK port toachieve this level.It is even more satisfying to achievethis standard as the scheme has beenintroduced and implemented acrossthe organisation through a group ofPort employees who have acted asIIP advisors and champions withintheir own business areas. Underthe direction of the Port’s Directorof Human Resources, this grouphas been the driving force behindimprovements in training, development,planning and communicationsthroughout the business.One of the major elements of thePort’s IIP achievements has beenthe successful introduction ofperformance management andindividual Personal DevelopmentReviews for every employee. Thiscommitment to developing theworkforce has continued withthe launch in November 2012 ofa bespoke Leadership DevelopmentProgramme for the Port. Initiallyworking with 40 managers, thescheme aims to improve people’sskills in managing and developingemployees in their own business areas,creating a virtuous circle of continuousprofessional development for all.Communication with and listeningto employees continues to be a keypriority for the business. The 2012employee survey achieved a returnrate of 64%, an increase of 18% onthe previous year, and in 2013 thesurvey will be made available tocomplete online to make it moreconvenient for staff and to encourageincreased response rates. As well aspublishing its regular staff magazine,Tyne Crier, the Port is also looking atadditional ways of engaging withemployees and improving its internalcommunications mechanisms in 2013.2012 was the third year since theintroduction of the Port’s profit sharingscheme, which recognises thecontribution made by the Port’semployees to performance of thebusiness and enables them to sharein the success they created. The profitshare scheme award for 2012 hasrisen from 4% in 2011 to 5% ofindividual employee remuneration,an acknowledgement of the hardwork and commitment of the Port’speople in what has been a recordbreakingyear.29

ANNUAL REVIEW 2012MEMBERS OF THE BOARDDuring the year there were a number of changes to the Board. Sir IanWrigglesworth stepped down as Chairman in July 2012 and Sir Les Eltonstepped up from his previous role of Deputy Chairman. Hilary Florek wasappointed as Deputy Chairman in July and David Appleton joined the boardas a Non-Executive Director in December 2012.The Executive Management Team comprises the Executive Directors of theBoard and Ian Gibson − Director of Logistics, Geoff Gillon − Director of HumanResources, Captain Mike Nicholson − Harbour Master, and Susan Wear −Director of Corporate Affairs.CHAIRMANSIR LES ELTON DLSir Les Elton was appointed Chairman of the Port of Tyne in July 2012, after 5years in the role of Deputy Chairman and as the Chair of the Finance Committeeand the Remuneration Committee. After his successful 20-year career as ChiefExecutive of Gateshead Council, he brings to the role his extensive experienceof leadership, management of change, regional affairs and urban regenerationand development. Sir Les was knighted in June 2005 and he has gone on tochair a number of reviews for the Government. He is also Chair of Northern Filmand Media and is a Deputy Lieutenant of Northumberland.CHIEF EXECUTIVE OFFICERANDREW MOFFATAndrew Moffat was appointed Chief Executive Officer in 2008, having previouslybeen Financial and Commercial Director. He has been a Board member since2007 and is a member of the Finance Committee. Andrew joined the Portin 2007 from 3UK, a telecoms subsidiary of the Hong Kong-based multi-nationalconglomerate Hutchison Whampoa, where he was Chief Finance Officer.Prior to this he held several senior financial and commercial positions withinOrange plc, including that of UK Director of Strategy, where his direction andsupport in the development of business strategies resulted in the growthand success of the Orange Group.NON-EXECUTIVE DIRECTORSDEPUTY CHAIRMANHILARY FLOREK(SINCE JULY 2012)Hilary Florek is a StrategicCommunications specialist andestablished her PR and Marketingconsultancy, HFPR, in Newcastleupon Tyne in 2000. She wasappointed to the Board in 2006 andis Chairman of the Finance Committeeand the Remuneration Committee.DAVID APPLETON(FROM DECEMBER 2012)David Appleton has held a varietyof senior positions with some of theworld’s largest shipping lines, mostrecently as Senior Vice President forAPL based in Singapore. He currentlyruns a maritime industry consultancy.SIMON BEECHINORSimon Beechinor is a qualifiedMaster Mariner with extensivesenior management and operationalexperience of the shipping industry.He was appointed to the Boardin 2007 and is a member of theAudit Committee.DR JON W HARGREAVES CBEJon Hargreaves joined the Board inNovember 2010 and was previouslythe Chief Executive Officer of ScottishWater from 2002 to 2007. He is theformer Chairman of British WaterwaysScotland and is currently Chairmanof Scottish Canals. He is a memberof the Finance Committee and theRemuneration Committee.MAXINE POTTMaxine Pott, a Chartered Accountantand Partner of RMT Accountants andBusiness Advisors in Newcastle uponTyne, joined the Board in 2011. Sheis a former Non-Executive Directorof the Universal Building Society andNewcastle Building Society and is amember of the Finance Committeeand the Remuneration Committee.CHRISTOPHER ROBSONChris Robson is Managing Partner ofRyecroft Glenton, a Newcastle firmof Chartered Accountants. He wasappointed to the Board in 2005 andis Chairman of the Audit Committee.DR ALAN G RUTHERFORD OBEDr Alan Rutherford joined the Boardin November 2010. He was previouslyNon-Executive Chairman of theNational Renewable Energy Centre(Narec). He is a member of theAudit Committee.EXECUTIVE DIRECTORSCHIEF FINANCIAL OFFICERDR JOHN HUDSONJohn Hudson was appointed ChiefFinancial Officer and joined the Boardin 2009. He qualified as a CharteredAccountant with Deloitte & Touche in1998 and his career includes seniorroles within Black & Decker and theIdeal Stelrad Group.CHIEF TECHNICAL OFFICERBRIAN REEVEBrian Reeve is a Chartered CivilEngineer with particular expertisein heavy engineering and portmanagement. He joined Port ofTyne in 2004 and has responsibilityfor engineering services andinfrastructure development.CHIEF OPERATING OFFICERSTEVEN HARRISONSteven Harrison was previouslyManaging Director of H J Banks(Mining) Limited before joiningthe Port in June 2009 as ChiefOperating Officer, responsible for theConventional and Bulk Cargo, Cruiseand Ferry, Car Terminals and Estatesbusiness areas. He joined the Boardin January 2010.

Port of TyneMaritime HouseTyne DockSouth ShieldsTyne and WearNE34 9PTT. +44 (0) 191 455 2671www.portoftyne.co.ukNORTH EAST BUSINESSOF THE YEAR 2013CONVENTIONAL & BULK CARGO CAR TERMINALS CRUISE & FERRY LOGISTICS ESTATES