Forth Ports takes control of London’s Tilbury Container Services

27 Jan 2012 - Port Planning

• Forth Ports acquires remaining shares from fellow shareholders DP World and Associated British Ports for £95 million

Forth Ports has announced that it has taken 100 percent control of Tilbury Container Services (TCS) after paying £95 million for the remaining 67 percent share in the London terminal.

Scottish port operator Forth, owned by Otter Port Holdings, bought out Dubai-based DP World and Associated British Ports (ABP), who have held a joint share in TCS with Forth for over a decade.

Charles Hammond, Chief Executive of the Edinburgh firm, noted how the acquisition underpins Forth Ports’ “port centric strategy”.

“This is an important acquisition and a major step forward in our plans to grow and develop our ports business,” said Hammond.

“We believe that stronger links between our container and distribution customers will provide benefits in the supply chain for them and further underpins our port centric strategy.”

Forth plans to combine TCS with its existing short sea terminal at the Port of Tilbury, located on the River Thames, to form a new container business branded London Container Terminal.

TCS currently handles approximately 320,000 TEUs per annum and has a significant trading position with the North/South reefer trades, primarily South America and South Africa with a strong presence in other deep sea trades.

The combined terminal will handle approximately 500,000 TEUs each year to become the third largest container operation in the UK.

Forth Ports currently operates eight commercial ports throughout the UK, including the Port of Dundee and six on Scotland’s Forth Estuary.

Forth will use the funds from the sale of its flagship shopping center in Leith last week to further invest in its ports business.

The TCS takeover will now see an end to what could have been a potential clash of interests for DP World, who are scheduled to open their new London Gateway Terminal in 2013.

“TCS will be in good hands with Forth Ports, and will benefit from the resulting consolidation of Forth's Tilbury Port terminals and connections with its other short sea assets,” said DP World's Senior-Vice President and Managing Director, Europe & Russia, Flemming Dalgaard.

“The offer from Forth made good sense to us and the decision was taken in line with the changing market dynamics in the liner industry including the rapid escalation in vessel sizes. DP World will continue to focus on our other UK businesses in DP World Southampton and at London Gateway.”