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Oct 02, 2023

Peel Ports' ambition is to double Humber Bulk Terminal trade after buy

Headcount set to double with substantial South Bank investment in five year plan

Headcount set to double with substantial South Bank investment in five year plan

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A five-year plan to double volumes and the workforce at Humber Bulk Terminal has been laid down by the new owner.

The New Holland facility has been bought by Peel Ports, with investment in the millions of pounds anticipated as the ink dries on the deal with Dutch firm HES International. The completion was announced earlier this week.

And the current 500,000 tonnes annual throughput and 30-strong team are set to be substantially increased as the company looks to build a strong east-west connection, with existing operations at Ellesmere Port and Runcorn.

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Sebastian Gardiner, managing director of Peel Ports Logistics, the division now operating the facility, said: "The big thing for us is being on the Humber, it is a massive step change for Peel. We have had a lot of customers asking about an East Coast solution, so when the opportunity to purchase came along, it was a great opportunity to get into the East Coast.

"The great advantage the Humber Bulk Terminal has is size. A lot of similar operations up the Trent are tidal, capable of welcoming vessels of around 2,500 to 3,000 tonnes. Then there are Immingham and Hull, big ports taking big ships. We can take in the 5,000 to 6,000 tonne vessels, a size emerging as the standard coastal vessel. That gives the short sea market flexibility, and it is all about economies of scale. Our customers may not want 20,000 or 30,000 tonnes but they do want 5,000 to 6,000 tonnes.

"It is a good facility, which may not have been loved in the past few years; the previous owner is a Dutch company, and the focus has been on the Dutch facilities, which is understandable. It was outside the core activity, but it has a fantastic team there, employing about 30 people who are very keen, but it needs investment, which we are prepared to do. T

"To encourage new trades in we have got to invest more in the facility to increase its capacity. That's what Peel is all about, with a track record of £1.2 billion spent on infrastructure in the past 10 years, and we want to continue that."

Raw materials for the glass industry along the M62 corridor, construction and agri-products are seen as growth areas, while also investing to meet Net Zero ambitions.

Laying out the plan which incorporates "cradle to the grave" added-value service provision for customers, with chartering, customs, freight forwarding storage and stevedoring, Mr Gardiner said: "We do one million tonnes at Ellesmere, 600,000 tonnes at Runcorn and we have a target to get to 800,000 to one million tonnes in five years on the Humber.

"Across the three facilities, for the short sea market we will be looking to handle three million tonnes."

Better utilisation of haulage, reducing empty wagons, is a short term aim, with a new wash bay facility being introduced, crane upgrades to extend life span and a lot of work on the conveyor system with new chutes to allow for higher volumes.

A cement terminal could also be set up to support the construction market, adding to the 275,000 sq m of covered storage at the Victorian-built former Humber ferry facility.

"Growth will increase employment in the area, there is the potential to double the workforce in the next five years, as with more volume comes more opportunity, not just directly, but in the local interland with suppliers too," Mr Gardiner said.

He heads the division after Peel bought the Quality Freight UK business he headed in 2019, bringing recent familiarity to the acquisitions process. Quality had also bought Edward Nicholson Ltd, a company that had traded for more than 120 years with stevedoring, agency and chartering operations, in the early Noughties.

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