PD Ports, Europe
– Leading UK landlord port
Interest: 59%
Description
PD Ports is a leading diversified port services group operating in the UK. PD Ports owns and operates the Port of Tees and Hartlepool, the fourth largest ports business in the UK (by tonnage) and also operates a number of other ports and logistics businesses elsewhere in the UK. PD Ports’ asset base includes an extensive property portfolio.
Regulatory Environment
Unregulated with Statutory Harbour Authority status for the Tees River, which gives statutory right to collect conservancy tariffs (toll-like dues) payable by ships using the Tees. It also sets lease rates for owned freehold property.
Leading "Landlord" UK Port
- “Landlord” or Statutory Harbour Authority status provides barriers to entry.
- Strategically located in well developed industrial area with good rail and road access.
Stable Cash Flows
- Conservancy tariffs (toll-like dues).
- Additional stability from long-term property leases.
- Established customers with significant investment at or within close proximity to Teesport.
Customer Base
Range of long-term contracts with strong, established counterparties including large multinationals.
Growth Opportunities
- Well positioned for container volume growth given significant recent investment by large UK retailers to establish regional distribution centres at Teesport.
- Significant amount of strategic land available to develop revenues from new tenants.