Member Article

Port of Tyne reveals steer from coal to wood pellets

The Port of Tyne will hold its Annual General Meeting today, where its 2015 financials will be discussed alongside a shift in direction for the business overall.

In face of a eduction in coal imports to the UK last year, the Port maintained strong results, announcing a £59m turnover and £6m pretax proft.

The Port invested a record £21m in infrastructure, mainly in completing the £25m extension to the main industrial quay Riverside Quay and providing additional storage space at the Port’s car terminals.

In 2015, the value added by the Port to the regional economy increased by 27%, to £710m, driven by a 30% increase in the number of full-time jobs supported directly or indirectly by the Port, which rose to almost 14,500.

Wood Pellet direction

At the event for stakeholders today, Andrew Moffat, CEO of the Port of Tyne, will announce the start of building new facilities to handle, store and transport wood pellet for Lynemouth Power Limited (LPL).

LPL is making good progress with its plan to convert the power station in South East Northumberland from coal to biomass.

The Port of Tyne has secured the agreement to handle, store and transport up to 1.8 million tonnes of wood pellet every year once conversion is complete.

Construction has begun on the Port’s estate at Tyne Dock in South Shields to build a 75,000 tonne storage facility, three enclosed conveyors and transfer towers, three silos, a rail loading silo and other works.

A statement said: “The fast approaching end of coal imports has been challenging for all UK ports that have been handling this cargo, but the strategy of diversification at the Port ensures that we are not reliant on any one sector.

“We have been at the forefront of developing expertise and facilities to handle the renewable fuel, wood pellet, and I am delighted that LPL have chosen the Port of Tyne as a key partner in this significant development.

“The project will provide new jobs, and support jobs indirectly, both in construction and in operation, for many years to come.”

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