The UK Ports Industry

– A Profile

There are about 120 commercial ports in the UK. These include major all-purpose ports, such as London and Liverpool; ferry ports such as Dover; specialised container ports, such as Felixstowe, and ports catering for specialised bulk traffic, such as coal or oil. There are also smaller ports essentially catering for local traffic, and there are other ports specialising in particular sectors, such as fishing or leisure use, e.g., marinas.

The UK ports industry is the largest in Europe, in terms of total tonnage handled. Total tonnage is about 570 million tonnes a year and annual international passenger throughput is about 30 million. Despite the large number of ports, much of the tonnage is concentrated among a comparatively small number of ports – the top 16 ports account for 80% of the total.

There are three main types of port in the UK. Most of the largest ports are in private-sector ownership. This group includes ports such as Liverpool, Felixstowe, Tees & Hartlepool and Forth Ports. This group also includes the 21 ports owned by Associated British Ports (ABP). ABP was formerly a nationalised industry - the British Transport Docks Board - but was privatised in 1982. A number of other private ports were formerly trust ports, which were privatised in the early 1990s. The Government has no ownership interest in any of the ports in this sector, and all their investment has to be privately financed on a commercial basis. This sector accounts for some two-thirds of the total tonnage handled in the UK.

Many of the smaller ports (and a few of the larger) are trust ports. Trust ports are independent statutory corporations but without shareholders. They operate on a quasi-commercial basis, but they do not pay dividends as they have no shareholders, and any profits they make are retained in the undertaking. Most trust ports are now entirely independent of Government, although in a few cases, such as the Port of London Authority, the Secretary of State appoints Board members. The trust ports sector accounts for about 25% of total tonnage.

A few ports belong to local authorities, notably Portsmouth and the oil terminals in Orkney and Shetland. This sector accounts for about 10% of total tonnage, but this figure is inflated by the large tonnage handled by the Scottish oil terminals.

It is estimated that some 25,000 people are employed in the UK ports industry. In addition to being important modal hubs in the country’s transport system, many ports represent centres of local economic activity. Much industry is located in or near ports, such as oil refineries, power stations, etc. Ports themselves are increasingly diversifying their activity into logistics and other value-added services, including aspects of landward distribution.

95% of the country’s international trade is handled through seaports. Although ports do not often feature prominently in the national media, they are significant drivers of, and key component in, the national economy. Total UK traffic is growing at roughly 2% a year, though some traffic, such as containers and roll-on/roll-off, is growing at a faster rate. Changes in the pattern of shipping, particularly the increasing use of larger vessels, is creating a demand for new and up-to-date facilities.

The protection of marine life, the environment, security (especially post-9/11) infrastructure developments and competition are just some of the principal issues the UK ports industry is concerned with.