The new terminal will help to boost throughput from the site and provide an additional 3,950 square metres worth of storage for bulk commodities such as wheat, rice, fertiliser and organic feed. Construction will be carried out by 3b Construction Ltd and is expected to be completed by the end of the year.
“Our investment at Garston is yet another example of ABP’s ongoing strategy to add state-of-the-art bulk stores across our ports in order to better serve our customers. ABP has built new stores in Ayr, Ipswich and now Garston and Teignmouth,” Andrew Harston, ABP’s director of Short Sea Ports said.
The investment is part of a wider strategy by ABP to improve its short sea capabilities in the UK as it predicts strong medium-term growth in the sector.
“We are investing £6 million to provide additional facilities to our short sea customers by the end of 2015, and it re-affirms our commitment to keep Britain trading,” Harston added.
Earlier this year, Canada Pension Plan Investment Board (CPPIB) and British investment firm Hermes Infrastructure bought a 30% stake in ABP for £1.6 billion.
"What we see is that growth is really picking up in the U.K," Cressida Hogg, global head of infrastructure for CPPIB said. "We think that the volumes of port traffic in and out of the country are going to be sustainable for the very long term and ABP will benefit from that."
ABP operates 21 ports in England, Scotland, and Wales and handles approximately 120 million tonnes of cargo per year. Despite the positive outlook from CPPIB however the management of ABP have stated concerns for the ports sector in the country due to legislation from Brussels that they claim will threaten growth.