Examination of Witnesses (Questions 732
WEDNESDAY 28 MARCH 2001
732. May I apologise for keeping you waiting.
Might I record the appreciation of the Committee for your hospitality
and it was extremely kind of you to invite us to visit and to
have a look around Immingham. I think we found it all very educational
and we are very grateful to you. I would like to put that on the
record, if I may, not least because it has given me the opportunity
to tell everyone that I have been on holiday to Cleethorpes. Can
I ask you, firstly, to identify yourselves for the record?
(Mr Dunn) I am Dennis Dunn, Director of Associated
(Mr Lerenius) I am Bo Lerenius, Group Chief Executive,
Associated British Ports.
(Mr Cuthbert) I am Steve Cuthbert, Chief Executive,
Port of London Authority.
(Rear Admiral Bruce Richardson) I am Bruce Richardson,
Chief Harbour Master, Port of London Authority.
733. If you agree silence, please, if you do
not agree if you could indicate. What extent does the demand for
port services currently exceed supply?
(Mr Dunn) Madam Chairman, I think that there is a
need for development in the deep sea container business in roll-on
and roll-off and in some areas in the handling of bulk materials.
As we have already heard there are many ports around, and I suppose
some of those are unused, but there are particularly feeder developments
in these areas and there are forecasted shortages of capacity.
734. Are there particular geographical areas
(Mr Dunn) In the deep sea business around the South
and South East of the country. Because of the nature of the shipping
line in the country and in North Europe there is a natural point
where they would like to be able to make a United Kingdom call,
that is to do with the natural routing of the ship and the diversion
factors. They do not divert too far on the roll-on and roll-off,
that tends to be down the East coast, may be a little down the
735. Are there other sectors that you can identify
that you think are under pressure?
(Mr Dunn) Some bulk areas, for example you did see
in the Humber that we have some developments, although we are
very strong in that area we are forecasting growth requirements
up there, so in that area there is a need.
736. Is that the area where you would expect
expansion in the future?
(Mr Dunn) Yes, it is.
737. Mr Cuthbert?
(Mr Cuthbert) I would just endorse what Dennis said
about deep sea container trade. I believe by 2004-05 the UK will
have effectively run out of container capacity in the southern
part of Britain unless a major deep sea container terminal is
constructed by then.
738. Will that capacity be met at the ports
that already handle container traffic?
(Mr Cuthbert) There are three major projects on the
stocks. One is Dibden Bay which ABP are promoting, one is the
redevelopment of Shell Haven on the Thames which is to be developed
by P&O Ports, obviously with us encouraging them to do that,
and Hutchison have announced the proposed development of Bathside
Bay which is in the Harwich area. My view is that at least two
of those container terminals will be needed within a ten to 15
739. Do you agree the resources have been concentrated
largely in the bigger ports?
(Mr Cuthbert) For these particular ships a deep water
access is needed, economies of scale are needed and, unless somebody
else can come up with an alternative, I would say that the sites
for all those have to be in the Harwich area, in the Thames and
indeed in Southampton, they are the logical places.