UK: Port of Tyne Buys McNulty
The Port of Tyne has acquired 10 acres of land adjoining its Tyne Dock estate in South Shields from the Administrators of McNulty Offshore Group Holdings Limited.
It is a strategic acquisition which will support the Port’s plans for future growth in both its existing business sectors and new areas.
Andrew Moffat, Chief Executive Officer of the Port of Tyne, said: "This is a strategically significant site with deep water and like our existing operations it is only three miles from the mouth of the river and the North Sea. It is a unique opportunity for the Port as the site is directly connected to our existing land at Tyne Dock. It is vital that land like this is retained for industrial and commercial use and its acquisition will facilitate the delivery of the Port’s growth plans across our diverse portfolio of interests.
“The site is well known to those in the offshore sector and provides potential for developments in the associated wind, oil and gas sectors. We are now talking to several interested parties who would find the location extremely attractive for immediate contracts. In the future it will form an integral part of the planned growth of the Port’s business and the increased jobs that will go with that.”
The acquisition is an important addition to the Port’s Tyne Dock Estate, which currently offers 750 metres of operational quayside. The McNulty site provides an additional 250 metres.
McNulty Group Holdings Limited went into administration in February of this year. Mark Firmin, KPMG’s Northern Head of Restructuring and Joint Administrator of McNulty Group Holdings Limited, said: “The sale of McNulty’s site to the Port of Tyne concludes more than 12 weeks of work by KPMG and we are pleased to have agreed a deal that holds out the prospect of future work and employment.
“In the short term the sale includes the provision for the Administrators to complete existing contracts being fulfilled by McNulty, which is currently creating employment for c60 people.”
The Port of Tyne is one of the UK's major deep sea ports and recently announced record cargo volumes and record financial results for 2011. It recorded a 30% increase in turnover and doubled profits, based on growth in its bulk cargoes such as coal, steel and wood pellet, its container terminal and logistics businesses, and its car terminals. The Port is further investing in its container and car terminals and plans to expand its handling facilities for wood pellets, which are used as well as coal by power stations to generate electricity.
Andrew Moffat has credited the growth of the business to the commitment and dedication of the employees and support of stakeholders who recognise the Port's role as a facilitator of economic growth in the North East region.
In 2011, the Port handled an estimated £10 billion worth of cargoes and independent consultants ARUP calculated that it contributed £467 million to the GVA of the regional economy - supporting 9,500 jobs.
Offshore WIND staff, June 18, 2012; Image: energicoast