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Friday, 05 Sep 2008
FUTURE DEVELOPMENT
GROWTH IN TRADE

By far the most significant trend in container flows has been the rapid surge in market share for the FarEast trades. In fact, at the Port of Felixstowe, Far East imports, notably from China, account for over 50% of all import container volumes, and this trend looks set to continue.

In this sector, the consolidation of freight into ever-larger container vessels has been the most marked. To accommodate the growth in trade and meet the increasing dominance of the very largest vessels in this trade, it will be necessary to invest in further deep-water container-handling capacity.

And so, as UK ports continue to feel the pressure on their deep-water container-handling capacity, Hutchison Ports (UK) Limited (HPUK) has come up with its own package of proposals to enable it to meet its customers’ needs, and maintain its position at the forefront of the UK ports industry.

Trinity Terminal

In November 2004, the 270-metre extension to the Port of Felixstowe’s Trinity Terminal was formally opened by the Hon Gwyneth Dunwoody MP. The extension has increased the total quay length at Trinity Terminal to 2,354 metres, and has enabled the Port to accommodate two of the latest large container vessels simultaneously. The Port is serviced by 27 ship-to-shore gantry cranes – from Panamax to ultra post-Panamax – with five new ultra post-Panamax cranes due for delivery in early 2008, manufactured by Zhenhua Port Machinery Company (ZPMC) in Shanghai. These cranes will the largest at the Port, with an outreach of 22-containers wide, and are equipped with twin lift capability, and heavy lift capacity of 85 tonnes.

Felixstowe South Reconfiguration

Construction of the ‘Felixstowe South Reconfiguration’ is scheduled to commence in 2008. The scheme involves the conversion of the area previously used by P&O North Sea Ferries Limited, plus the now largely redundant Dock Basin and Landguard Terminal, into a new deep-water container terminal. The plans also include provision of a third rail terminal on land already reclaimed at Trinity Terminal, and an upgrade to the existing single-track branch line serving the Port.

The first phase of Felixstowe South should be operational by 2010, and the whole scheme will eventually increase capacity at the Port by 50%. More and more ultra large container ships are being ordered each month, and Felixstowe South will also increase – by almost 200% – the capacity available to the very largest ships at the UK’s largest container port.

The Felixstowe South scheme will increase the quay length available for container handling by close to 1,000 metres, giving a total quay length of 1,350 metres. Together with the extension of the Port’s Trinity Terminal, Felixstowe will be able to provide a total of over four kilometres of deep-water container facilities, and total capacity at the Port will increase by 1.5 million TEUs, to 5.2 million TEUs per annum. The new terminal will be equipped with 13 of the most modern quayside cranes and 50 yard cranes, and will provide a storage capacity of 46,800 TEUs.

Dredged to 16 metres alongside, Felixstowe South will provide the deepest water available at the Port, and will enable Felixstowe to handle more of the latest generation of large container vessels. In so doing, it will secure the Port’s position as a major European hub, and will ensure that UK importers and exporters enjoy the full range of direct-call liner services.

Moreover, the Felixstowe South Reconfiguration will provide a significant boost to the economy, both locally, and in the Eastern region as a whole. Not only will the proposals help to secure the future employment of all those who currently rely on the Port for their livelihoods, but it will create an additional 621 jobs by the time it is fully operational, in 2015. An estimated 860 additional jobs will also be generated through associated activities, such as freight forwarding and haulage, and multiplier effects elsewhere in the area.

Sustainable Development

HPUK is committed to expansion through sustainable means, and the reconfiguration of Felixstowe South will be developed in keeping with Government policy on maximising the use of existing facilities before creating new ones.

HPUK is committed to increasing the share of domestic containers transported by rail. In December 2005, HPUK submitted an Application for a Transport and Works Act Order to increase the capacity of the Felixstowe Branch Line. This will involve the dualling of a 41/4-mile stretch of the existing single-track branch line between Trimley Station and a point west of Levington Bridge. Proposals have also been submitted to construct three additional 24-wagon sidings within the existing Ipswich marshalling yard, and to undertake some modifications at Westerfield level crossing.

In parallel with these local rail improvements, HPUK is working closely with Network Rail to fund gauge and capacity improvements to the route between Ipswich and Peterborough and the East Coast Main Line, and its diversionary routes to South Yorkshire.

The results of the Public Inquiry into the Felixstowe Branch Line proposals should be known early this year. The capacity enhancement would allow up to 40 freight trains per day to run in each direction by the year 2020, and would help the newly-configured Port of Felixstowe to achieve a rail modal share of 26% - taking 500,000 lorry movements off the road per year.

The Felixstowe South Reconfiguration, combined with the planned deep-water container terminal at Bathside Bay, will provide a significant boost for coastal shipping. The combined complex, once developed, will be the only UK hub capable of providing sufficient volumes to support daily short-sea feeder services to the main feeder ports elsewhere in the UK and near continent. The increased use of feeder sailings will help relieve the pressure on the country’s busy road network.

It is essential that the UK is equipped with the right port facilities to service future trade, and here, at the Port of Felixstowe, we remain committed to achieving this goal.