UK Ports plays a huge role to play in driving the UK’s economy and there are some major plans to expand Ports and deliver new development and regeneration around Ports to boost the economy even further. With ports playing a crucial role in the future of the economy the inaugural Ports Development Conference is set to play an important role in shaping the vision for the future. One of those involved in the event is John Chaplin, Director of External Affairs at The Bristol Port Company, and we hear exclusively from John and their vision for the ports future:

 

John Chaplin – Director at The Bristol Port Company:

 

Q. Can you give a brief history of the Port?

Its recent history starts in 1991 when two entrepreneurs, Terence Mordaunt and David Ord, saw a fantastic opportunity to take a port that was under Bristol City Council ownership and losing them a lot of money, put it into private ownership and open a gateway to the rest of the world.

 

Q. Why do shippers choose to go through Bristol Port?

Bristol is recognised as the most centrally located in the UK and can reach 67% of the population within 250km. The “bottom line up front” is that 95% of everything in the UK comes through a port – being an island nation makes sea freight hugely important.  We are one of the few ports where you can drive to all points of the compass and we are multimodally linked with motorway and rail.

 

Q. What contribution does Bristol Port make to the economy?

£1 billion pound GDP annually.  The Port employs 549 fully contracted staff directly, but there are 9,000 indirectly employed locally and 20,000 jobs nationally depend on the Port.

 

Q. What products are imported and exported through Bristol Port?

A favourite quote is “why do we need a port when everything comes off the internet?” but one of the huge successes of The Bristol Port Company is diversification – we handle everything that you wear, see or use in everyday life.  800,000 cars, 1 million tonnes of animal feed, up to 750,000 tonnes of export grain, 750,000 tonnes of other bulk products (including salt, stone, aggregate and cement), up to 4½ million tonnes of coal, in excess of 100,000 TEU of containers and even 10,000 cruise passengers.

 

Q. Who are the major customers/important corporations?

We have a broad and diverse base of national and international customers.  Please refer to our website at www.bristolport.co.uk for more information.

 

Q. How do you cope with shifting trades?

Trade is a dynamic element but we can switch what we handle.  In the last two years there has been a huge drop in the import of coal, from 4.5m tonnes down to 0.5m tonnes because of government energy policies, however we have seen a growth in companies like Amazon and The Range basing their national distribution centres in the immediate area, so our container service has increased.

 

Q. Some customers require storage.  Given the extent of your land (2,600 acres) do you have more storage facilities than other ports?  Is size your USP?
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You can never have enough land!  We are currently developing further into Court House Farm and we also own another farm with the potential for expansion.  The alternative is to build upwards, ie. multi-storey facilities but there is huge cost involved in that and we still have the capability of remaining flat because we have so much space.  Although 2,600 acres sounds a lot, inevitably we are always looking for opportunities and we are constrained on one side by greenbelt.  We are in talks with the local authorities to look at ways of expanding our hinterland.

 

Q. What is the impact of Hinkley Point C?

Hinkley Point C is a huge opportunity – it will be the largest building site in Europe and is 35 sea miles/45 road miles from the Port.  We have a contract with EDF and are advising on process and engaging with supply chain partners to become a muster port to handle its Abnormal indivisible loads (AILs).  The encouraging element of EDF’s procurement policy is that they favour regional hubs. 

 

Q. What is the ratio of import and export?

In terms of a tonnage percentage, the ratio is 80% import and 20% export.

 

Q. What impact does BREXIT have on the Port and, following Brexit, what does the future hold?

Being a West Coast port we are close to the East Coast of America which opens up many opportunities.  Suppliers are re-evaluating their logistical chains in light of Brexit and realising that, without being restricted by European regulations, Bristol is its closest port.  Our geography is a huge advantage, with motorway links to all cardinal points of the compass.

We are confident that our systems and operations will continue to operate smoothly and efficiently after Brexit. We expect that any additional administrative burden will be kept to a minimum and further mitigated with the use of technology.  Bristol Port’s trade currently comprises 66% non-EU (34% EU) and Bristol is predominantly an importing facility. 

Most imports into Bristol are pre-cleared for customs and so any imposition of tariffs post-Brexit will not delay our cargoes.  The only cargo that has the potential to be delayed by the imposition of tariffs is ro-ro (i.e. lorry-borne cargo).  This may persuade importers away from ro-ro and into containers, which will benefit our business.

We expect activity levels to increase in the years ahead and have exciting plans for a deep sea container terminal which the government has already granted consent for. Here is our Bristol Port – Brexit Ready Brochure

 

Q. Talking of logistical chains, some groups are thinking about onshoring supply chains – what is your view?

This may be a realistic possibility for some industries, but there is a finite limit to what can be produced in the UK.  Even if a widget can be manufactured in the UK, its raw materials may still be imported.  The UK is an island nation, so we will always need ports.

 

Q. Expand on your plans for a deep sea container terminal?

The development of a deep sea container terminal at Bristol has specific economic and environmental advantages; it is near to the heart of the country and major population areas, there are excellent existing road and rail links and there is a natural deep water channel to the Port. The development is designed to service not only today’s large container ships, but also successive generations of Ultra Large Container Ships in excess of 18,000 TEU and 16 metres draught.

 

Q. Given your hopes for the future, there will be risks involved – how are they managed?

One of our strengths is when risk raises its head we are able to react very quickly.  Longer term, we are always at risk through new external threats (e.g. cyber security) or from changing government policy or regulations (e.g. energy policy). We can be very reactive, very quickly and because we have a hugely diverse commodity portfolio, we are able to mitigate these risks.  As a family business we have never diversified away from the port business and therefore have no division of priorities.

In terms of risk our biggest challenge is likely to be the availability of labour.  As a private company we pride ourselves on having permanent contracts with pension schemes and other associated benefits but there will be a drain on labour.  We were the first port to introduce a Stevedores Apprenticeship Scheme and we have fully embraced the Apprentices Levy together with Weston College to provide training for our staff.

 

Q. What advice would you give to other privately owned businesses who wish to trade more internationally?

Do not be scared of talking to anyone overseas.  In this day and age, communication is easier than ever before. It is not a difficult process to export goods, so why would anybody restrict themselves to the 60 million people in the UK when there are over 7 billion people in the world.  As a family company, we pride ourselves on meeting anyone at the front door – from the Prime Minister to a local pet shop owner.  We offer a personal service and always go the extra mile, ensuring that every single customer leaves satisfied. 

 

Q. Is there anything you would like to add?

Bristol Port offers the most cost effective end-to-end logistics solution of any UK deep sea port. Nothing is outsourced, starting with the Pilots in Barry, to the lockgate keepers, to the IT facilities used to support our customers.  We operate our own, fully employed Police force and we are the Competent Harbour Authority.

Bristol’s location is second to none offering:

  • Deep water up to a depth of 14.5m accommodating vessels up to 130,000 dwt
  • Excellent connectivity with motorway and rail links at the port to all points of the compass
  • Proximity to markets – 67% of the UK population (43 million people) is within 250km of Bristol Port
  • 24/7 working
  • Storage space at the port and development land close by
  • Responsive management
  • Global gateway

 

Register for the Ports Development Conference. Click here!
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