The huge finance package will be used for a number of projects across its UK ports
The Port of Hull at King George Dock (Image: Andy Beecroft and licensed for reuse under the CC BY-SA 2.0 license)
Major Humber employer Associated British Ports has sealed a finance deal worth £300m to help it drive forward growth plans which are set to create hundreds of new jobs. Associated British Ports (ABP) is the UK’s largest port operator with 21 bases, with the ABP Humber ports – Hull, Goole, Grimsby and Immingham – employing 1,200 people alone as well as supporting 33,000 jobs through its supply chain.
Now the operator has sealed a £200m commitment from the National Wealth Fund to back its plans to deliver a major infrastructure programme across its network. The plans will support growth, boost job numbers and also strengthen local supply chains, while creating new opportunities for business investment in coastal and industrial communities.
The Fund’s commitment sits alongside further finance from a group of private sector banks, led by Bank of America, together with Lloyds and NatWest, forming a total package worth £300m. The cash commitment from the National Wealth Fund means ABP can ramp up work on a number of significant projects including work in the region.
Eligible projects in the programme include a major new freight ferry terminal project at Immingham; a further upgrade to the Port of Lowestoft to support more offshore wind operations; infrastructure works at the Port of Ipswich to develop the local Sizewell C supply chain; and development of Solent Gateway.
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It’s not yet been revealed how many jobs will be created at Immingham, but in all, more than 700 jobs will be supported and created through the programme of works. The National Wealth Fund and the UK Government said they identified ports as a priority for investment, highlighting how they are pivotal to strengthening the UK’s trading capacity.
As a result, ports support vital industries, technologies, and supply chains, as well as the clean energy transition. Bosses said investment and development in the sector will bring jobs and growth to key industrial areas, regenerating parts of the UK that need it most.
Henrik L. Pedersen, CEO of Associated British Ports, said: “Associated British Ports is delighted to be partnering with the National Wealth Fund on this ground-breaking commitment. The National Wealth Fund’s strategic ambitions, innovative thinking and ability to commit over the long term make it uniquely positioned to support ABP’s targeted major infrastructure investment programme.
“I would also like to thank Bank of America, Lloyds and NatWest for their involvement, a further expression of their ongoing support for ABP. The projects supported by today’s transaction reflect the full span of ABP’s twin missions – Keeping Britain Trading and Enabling the Energy Transition – unlocking growth and boosting jobs, prosperity and opportunity in coastal communities.”
Oliver Holbourn, CEO of the National Wealth Fund, said: “One of the National Wealth Fund’s core ambitions is to accelerate investment and regeneration in the places and regions of the UK. This commitment is about more than upgrading or delivering infrastructure – it is about unlocking the long-term potential of places that have powered the UK economy for generations.
“By backing ABP’s investment programme, our capital is helping to create the conditions for new businesses to invest, local supply chains to grow and communities to benefit from skilled jobs, cleaner industry and renewed economic confidence for years to come.”
Karen Fang, Global Head of Infrastructure and Sustainable Finance and Co-Head of Global Capital Solutions at Bank of America, said: “Supporting Associated British Ports through this financing programme demonstrates the role of strategic financing in port infrastructure modernisation, while strengthening regional supply chains and accelerating the transition to a more sustainable industrial base.”
The Humber ports handle £75bn worth of trade and cover a range of cargoes, including energy, vehicles, roll-on roll-off, containers, bulks, liquid bulks and forest products. Immingham is the UK’s largest port by volume while Hull is home to the £310m Green Port Hull facility.
Maritime Minister, Keir Mather said: “Ports are the lifeblood of our economy – they keep us connected, keep us trading, and keep Britain moving. That’s why I’m proud of this £200m investment in Associated British Ports, which will deliver the major infrastructure, jobs and economic growth that coastal communities right across the country deserve.”
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