PORT OF TYNE ANNUAL REVIEW 2012

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