PD Ports has announced a new seven-year deal with SSI UK for the handling of steel slab through Teesport.
Since SSI UK’s steelmaking operations restarted almost three years ago, more than seven million tonnes of steel slab has been exported through the PD Ports’ facilities at Teesport.
The new contract provides both parties with the security of a long term agreement and includes the provision of additional export capacity at the port that could handle the expected future increase in SSI’s steel production.
It also secures approximately 100 existing jobs at Teesport, with the expectation that future increases in volumes will lead to the creation of up to an additional 30 jobs.
PD Ports’ significant investment at its No 1 Quay at Tees Dock, which is on target for completion in May 2015, will enable fully laden panamax vessels to be loaded at any level of tide.
This will reduce supply chain costs for SSI UK and facilitate improved efficiencies at Teesport’s premier export steel handling facility.
Jerry Hopkinson, PD Ports’ Managing Director Bulks and Port Services, said: “We are delighted to have agreed a new seven year deal with SSI UK.
“We have worked hard to support SSI UK since the recommencement of steel production on Teesside in 2012 through improved efficiency of our operations and investment in our facilities.
“This contract demonstrates the close partnership between our businesses which we are sure will continue for many years to come. It provides the capacity to increase the volume of exports as SSI’s production grows and secures the long term position of Teesport as the UK’s premier bulk exporting port.”
Cornelius Louwrens, UK Business Director and Chief Operating Officer for SSI UK, added: “We are pleased to have concluded the new agreement on what is a key part of our operations in ensuring we meet our customer requirements.
“The exporting of slabs through Teesport over the past three years has been very successful and is attributable to the close working relationship and cooperation between the two companies.
“We look forward to a continuation of that in operating the new contract.”