Port company puts the PD in people development with industry win
An industry-leading approach to people development has been celebrated at Humber-investing PD Ports. The operator has been recognised with an International Bulk Journal Award as the prestigious maritime event returned for the first time since 2019 in Rotterdam. The company celebrated its 20th year of supporting young people in 2021 having first launched its dedicated apprenticeship scheme back in 2001. Since then, the company has continued to prioritise attracting, retaining and developing talent through a number of initiatives including a bespoke Chartered Management Degree Apprenticeship with 11 employees graduating earlier this year. Read more: £10m port expansion as PD and Barrett agree new steel deal Geoff Lippitt, chief commercial officer at PD Ports, was delighted to receive such an award on an international stage. He said: “PD Ports now proudly employs more people than ever before. Not only do we continue to invest in our award-winning training programmes for early careers, but we also want to see every one of our people given the tools to reach their full potential. We now have 19 members of staff, specifically employed within our bulks operations, who are enrolled in further developmental and educational courses which is just fantastic.” The company is behind a £10 million port investment to handle steel distribution in northern Lincolnshire. It is close to completing a dedicated new 200,000 sq ft site at its Groveport facility on the River Trent, supporting long-term customer Barrett Steel as it grows its market share. It is PD’s largest investment on the Humber in decades, with the 190-acre site between Gunness and Flixborough, on the outskirts of Scunthorpe, its largest location in the region.
£5m boost defrosts huge Grimsby cold storage expansion after costs soared on £30m plant
Grimsby’s cold storage capacity is to be increased by 20 per cent after £5 million of government support was netted for a key project. Brexit and Covid have put pressure on a vital element of the wider seafood sector, with it trading at over-capacity for the past six months, as just in time imports have switched to more considered buying by the town’s cluster of processors. The £30 million Europarc proposal from HSH Coldstores is fully consented and will create 60 new jobs, with the potential to unlock hundreds more in Grimsby. It was the lead beneficiary from the first round of the UK Seafood Infrastructure Fund, with £20 million being invested nationwide. Read more: Seafood processor swoops for neighbouring home delivery specialist A further £2.4 million has been awarded to JCS Fish to expand its processing operations in the town, with cash for projects in Fort William, Peterhead and Alness in Scotland, for Mowi, Denholm Seeafoods and Aquascot; Shoreham Port for vessel maintenance and Falfish Ltd in Newlyn ad Mevagissey. Henry Pringle, chief operating officer for Constellation, HSH's parent company, welcomed new Fisheries Minister Mark Spencer to the existing Birchin Way site, taking him on a tour of the huge operation. He said: “We are running at over-capacity, we’re storing in the aisles, it is everywhere, and it is not just us. Everyone in Grimsby is full. We see that as a major impediment to Grimsby industry, processing depends on cold storage and occupancy at the moment creates tonnes of additional cost. We cannot take in additional customers, and we’re having to shuttle to the Midlands and Peterborough. “Grimsby being the centre of fish and seafood processing in the UK, a lot of the supply chains are dependent on imports. This is the main fish and chip shop warehouse for the UK.” Cold storage is required for raw product, ingredients for value-added processing and pre-sale holding, with transportation to and from the cluster adding to the cost, and eroding competitive advantage. Mr Pringle said: “We are looking at building a new facility within Grimsby, supporting 30,000 pallet spaces. There are 150,000 currently, so that will be increasing by 20 per cent.” The 52-year-old second generation business holds a third of the market share in the town, and will employ 200 people when the addition completes, scheduled for early 2024. It is currently being rendered for, and has been hit by inflation in the building materials market. Of the reasoning behind the demand, Mr Pringle said: “We are at peak season going into Christmas, there has been a bounce-back post Covid and Brexit concern means no-one wants just-in-time inventory. The model is now to import and hold greater stock. “We wouldn’t be able to do this without the grant funding. Capital expenditure accelerated, construction costs have gone through the roof and while they have come down, they are not where they started. This really gets us across the line in terms of making it viable.” When first announced in May 2021, with Europarc developer Wykeland, the 171,000 sq ft site had a price tag of £15 million, though 25 new fuel efficient trucks with the latest refrigeration technology are also part of the successful bid. At JCS, a state-of-the-art 2,000 sq m fish processing factory with integrated smokehouse is to be developed, doubling salmon and trout processing capability to 20 tonnes per day. It could bring 32 jobs to the town, while reducing reliance on imports. It came as it was announced in Tromso, Norway, that the next International Coldwater Prawn Forum will be held in Grimsby in 2024, likely to bring more than 200 delegates. The town successfully hosted the World Seafood Congress in 2015. Mr Spencer, appointed to Defra under Liz Truss, and the representative for Sherwood in Nottinghamshire, said: “We are adding value to the processing sector, building extra storage that helps with the supply chains and generates jobs. “This is about investing for the future and making sure we have one of the most robust, sustainable and employable industries in Europe. We are now competing with our colleagues across the water, we want to make sure the UK fisheries sector is robust and fit for the future. “It demonstrates our huge opportunities in this sector, and I think this will assist on that journey, moving forward in the new world post-Brexit, and I think it is great news for the sector, it proves we can do it here in the Uk and do it very successfully.” He rejected the idea it was paying for issues arising from the vote to leave, despite the stated change in business model. “Companies are holding more stock because they are confident in the future and confident they are going to sell it,” he said. Icelandic Seafood International’s decision to exit UK operations, putting 200 jobs at risk in Grimsby, was raised with the Minister. He claimed administrators had been appointed in media interviews, but this was refuted by the business, which is working with specialist MAR Advisors to achieve a sale. The company operates the huge former Five Star Fish plant on Great Grimsby Business Park, having merged two businesses into it as Covid struck UK shores. Mr Spencer said there would be “wrinkles on the way” following Brexit, with the company’s chief executive having pointed to harder trading conditions as part of the reasoning, with losses of £12 million revealed. He said: “It is very sad for these people, losing jobs - potentially - and I hope the administrator can find someone to take it on lock, stock and barrel. With this investment there will be other jobs in fish processing industry and as a nation we have reason to be optimistic about the future.” ISI had announced it was to pull out of the UK in a trading update last week. It is rigorously pursuing a sale, with interest mooted. Following his comments, to several media outlets, Bjarni Ármannsson, Icelandic Seafood International group chief executive, said: "Iceland Seafood is running a sales process on its UK subsidiary, Iceland Seafood UK, after having decided to exit the UK value-added operation. "MAR Advisors have been mandated to run the process. We are currently presenting the company to prospective buyers. As Iceland Seafood is a publicly-listed company we will report the outcome of such a process at an appropriate time to the market. Any suggestions that Iceland Seafood UK is in a liquidation process are false. That is not the case at all." Grimsby MP Lia Nici had earlier in the week taken to social media to air her concerns about finding out about the company’s plight via social media. The Westminster agenda led to her missing Mr Spencer’s visit, but she met with him in London prior to his arrival.
Latvian logistics specialist buys Humber haulier as it enters UK market
A Latvian transport and logistics group has swooped for a long-established Humber haulier. Kreiss SIA, operational across Europe, has bought out C Neil Dowson, the Stallingborough-based business that first launched in Hull in 1990, in an undisclosed deal. It provides haulage services across the UK, boasting a fleet of tractor units, skeletal trailers, forklifts, and its own yard located a mile from the eastern entrance to Britain’s largest port, Immingham. It all forms part of the deal, providing Kreiss with a new base in the UK, further expanding international operations, with 26 staff employed. Read more: Deal off - talks have failed over Grimsby seafood plant buy-out where nearly 200 jobs are at risk Sergejs Zalizko, director, said: “We are delighted to welcome C Neil Dowson into the Kreiss Group. This acquisition will help us build out our UK base to enhance our services for clients in the UK. C Neil Dowson has an excellent reputation in the market, and we are pleased to be working with them and their team to continue to deliver first-class haulage solutions to customers.” Kreiss, launched in 1994 with a single truck, provides transportation for pharmaceuticals and cosmetics, hazardous cargo, and frozen and perishable goods. It now has offices in six countries, a fleet of 2,000 trucks and trailers, and employs around 2,400 staff, turning over more than £260 million. Dowson moved from Hull to Immingham in 2001, when its Maritime Yard on Scandinavian Way, Kiln Lane Industrial Estate, became available. Neil Dowson, operations director, will remain with the business for at least the next year following the deal. He said: “Over the past 32 years of trading, C Neil Dowson company has been recognised by its customers, staff and suppliers for its loyalty and reliability within the market. These principles can now be carried into the future with the support of Kreiss behind us. Becoming part of Kreiss Group marks a new chapter for C Neil Dowson and I am confident that it will be a positive move for the business and its customers.” A team from Weightmans led by Paul Raftery, provided legal advice to Kreiss on the acquisition, its first in the UK, with Chasz Coulsting at Crowe UK and Stuart Laight at SJL Advisory. For Dowson, Mark Daubney at Bridge McFarland and Mike Beckett at Forrester Boyd supported.
£10m port expansion as PD and Barrett agree new steel deal
A £10 million port investment is being made to handle steel distribution in northern Lincolnshire. PD Ports is close to completing a dedicated new 200,000 sq ft site at its Groveport facility on the River Trent. It will support long-term customer Barrett Steel as it grows its market share, and signifies the start of a new contract that will take the partnership to 2040 and beyond. The new facility, launching early next year, will support the expansion of Barrett’s footprint on the Humber, and will be further enhanced with additional investment from the port operator to double the size of its transport fleet. It is a move described as strengthening Barrett’s national distribution network, allowing for just-in-time deliveries to be made across the UK. Read more: Hull blade plant boss has his say on Siemens Energy buy-out deal It is PD’s largest investment on the Humber in decades, with the 190-acre site between Gunness and Flixborough, on the outskirts of Scunthorpe, its largest location in the region. Geoff Lippitt, chief commercial officer, said: “The new Barrett Steel facility is a huge milestone for PD Ports at Groveport. This marks the largest single piece of investment in the site since we first acquired it back in 2015 and demonstrates our intentions to position Groveport as the UK’s leading steel handling hub for steel sourced both domestically and internationally.” The state-of-the-art warehouse has also been instrumental for both parties in continuing to realise their shared sustainability targets - it is the first building in the UK to be constructed in ‘XCarb’ steel – steel made using 100 per cent recycled content and 100 per cent renewable energy – supplied by fellow PD Ports customer, ArcelorMittal. The new build is also primed to welcome solar panels in the future. Mr Lippitt said: “As a business, we are constantly striving to reduce our industrial impact on the environment and have ambitious decarbonisation targets to reach net zero. This innovative warehouse is a fantastic example of how we can utilise lower carbon materials in order to reduce emissions across the supply chain.” Barrett Steel, a sixth generation Bradford-headquartered operation, has been a leading steel stockholder and processor for more than 150 years. With over 30 sites nationwide, it describes the new facility as “a huge mark of intention” for it to remain at the forefront of the UK steel industry. Guy Barrett, group purchasing director, said: “This new facility will increase our capacity and ability to offer a just in time solution for steel fabricators across the UK. Being able to deliver the project using a low embodied carbon, the first of its kind in the UK, not only demonstrates our commitment to our own net zero goals but also showcases a tangible solution to the questions around sustainability currently facing the industry. “We are delighted to be continuing our longstanding relationship with PD Ports on this ground-breaking project.” Barrett had taken on several steel distribution centres from British Steel, following its acquisition by Jingye Group, while PD also made a multi-million pound investment at Groveport for All Steels Trading, another long-serving customer, just before the Covid pandemic outbreak.
Rail Minister urged to get on with plans to electrify Midland Mainline through East Midlands and Yorkshire
Rail Minister Huw Merriman has been urged to get on with the job of electrifying the Midlands mainline north of Market Harborough. South Yorkshire MP Dan Jarvis has accused the Government of dragging its feet over promises of finally getting round to speeding up the main railway line linking Leicester with East Midlands Parkway, Nottingham, Sheffield and Leeds. The Government paused plans to stump up the cash for electrification in 2015, before cancelling them completely in 2017. However the Government’s 2021 Integrated Rail Plan re-committed to electrify the northern part of the line by the early 2030s. The investment would enable East Midland’s Railway’s new Aurora Class intercity trains to run in electric mode – providing the wires south of Bedford are upgraded from 100mph to 125mph. The proposals would be part of the government’s flagship HS2 scheme, which would see bullet-style trains run from the East Midlands Parkway to Nottingham, Derby, Chesterfield and Sheffield on the upgraded and electrified Mainline. Despite the announcement of the integrated rail plan in November 2021, Mr Jarvis, the Labour MP for Barnsley Central, said that the terms of reference had still not been agreed, 14 months on. Speaking in the House of Commons he said: “Fourteen months on not only has the work not been done, the terms of reference have not even been agreed. “Ukraine and Romania have just reopened a train line in six months, during a war.” Huw Merriman MP promised there would be news “very shortly.” Following his speech, Mr Jarvis added: “The Integrated Rail Plan was a blow to Yorkshire, as the full commitment to our region was canned. “The high speed rail study is supposed to address this, but over a year on, it has gone nowhere.
DHL confirm sale of Wilko distribution centre – which it bought for £48m two months ago – for reported £88m
DHL has confirmed the sale of the main Wilko distribution centre in Nottinghamshire, just two months after it bought it. The logistics giant bought the 1.1m sq ft Worksop site for £48 million in November and was leasing it back to the high street retailer. Wilko initially struck the arrangement in order to free up cash for investment across its 400-plus stores and digital channel. The GMB union says DHL has now sold on the site on the Manton Wood Enterprise Park to Canadian asset manager Brookfield for £88 million. In a statement a spokeswoman for DHL Supply Chain said: “While we do not discuss the commercial aspects of our business dealings, we can confirm that we have successfully concluded the sale of our East Midlands campus to Brookfield, which we have now leased back on a long term basis. “This relates solely to Wilko’s Worksop distribution centre.” The spokeswoman has been asked to explain how both DHL and Wilko are both leasing the site. Brookfield has also been approached for comment by BusinessLive. At the start of the month Wilko announced it had secured £40 million from restructuring specialist Hilco and shaken up its leadership team following losses. Last week it announced 95 customer service jobs were at risks under plans to outsource the work to a third party provider. The GMB union said it felt the sale of the Worksop site reflected what it called the “ever-growing influence of private equity investors in the UK high street”. It wants the Competition and Markets Authority to have greater regulatory oversight in relation to private equity buyouts to ensure “greater protection of both consumers and workers”. GMB National Officer Nadine Houghton said: “The sale of Wilko distribution centre to Canadian investment and private equity giant Brookfield and the recent Hilco revolving credit facility raises further concerns about the ever-growing influence of private equity investors in the UK high street. “Highly debt leveraged models are being used to buy up the UK high street with little or no oversight from regulators.” According to its website Brookfield owns and operates “high-quality assets and businesses around the world”.