Monday, March 4, 2019

Deep Sea Container, Bulk Cargo and Multimodal Port Secures Multi Million Pound Finance Deal

Cash to Support Infrastructure and Logistics Developments
Shipping News Feature
UK – The demands put upon the country's ports have changed over the past half a century and like many the Port of Tyne finds it now operates across several sectors, with its portfolio ranging across container, bulk and conventional cargo, car terminals, cruise and ferry options plus logistics and estates interests. Now, as the latest in a series of landmark North East infrastructure deals supported by Lloyds Bank, the port has secured a £60 million refinancing package.

The five-year agreement, which comprises a £30 million revolving credit facility and a £30 million term loan, provides the port with capital to develop a number of major infrastructure projects and comes after Lloyd’s financed the nearby 299MW MGT Teesside power station.

The Port of Tyne, which contributes £690 million to the North East economy, occupies a 250-hectare site on the River Tyne and is the second largest car exporting port in the UK. The port also handles a diverse range of cargoes including commodities, manufactured and retail goods, renewables and offshore services. Mark Stoner, chief financial officer at Port of Tyne, observed:

“The Port of Tyne is a major gateway to the North, thanks to its multimodal connectivity by sea, road and rail, which gives customers easy access to markets across the UK and around the world. The region’s economy is reliant on the success of the port, which is why we reinvest all profits back into the business.

”As a self-financing organisation, this approach is essential to future growth, for us and for the businesses we work with in the North East and beyond. This partnership with Lloyds Bank will help us retain our position as one of the UK’s most innovative and efficient deep-sea ports.”

As a key supporter of the government’s Maritime 2050 strategy, the business sees itself as set to play an important role in the UK’s long-term future as a maritime nation. For its part Lloyds Bank has committed to lending up to £700 million this year to firms across the North East, and up to £18 billion across the UK as a whole. It says this is funding that can help businesses develop flexibility and ensure they’re equipped to make the most of opportunities to come and Alison Smith, business development director in Large Corporates at Lloyds Bank, added:

“The Port of Tyne operates a vital trading gateway to worldwide markets, making it a hugely important asset to the regional economy. We look forward to working closely with the Port of Tyne over the coming weeks, months and years. Supporting the North East’s infrastructure goes hand in hand with our commitment to helping Britain prosper.”