The container terminal at the port of Great Yarmouth is closing before it has even opened, because the UK market has not recovered from the recession.
The port will switch its focus to "growthsectors" like offshore energy.
Great Yarmouth Port CEO Eddie Freeman said: “We are reacting to the reality that demand from the offshore sector, and in particular organisations involved in energy generation through offshore wind farms, is on a steep growth curve, while in contrast, the UK container scene is still recovering from the financial crisis.
“The decision was taken in conjunction with the container terminal operator, PSA Great Yarmouth, and will remain in force until market conditions make a return to the sector viable.”
The terminal is 60%-owned by Singapore ports giant PSA International, with 40% held by Great Yarmouth port owner International Port Holdings.
Freeman said the port had the right water depth and availability of quay space and land to develop for the offshore wind farm business.
He said the port would also focus on other growth areas, such as the agricultural and decommissioning sectors.
Local press reports suggest that the port’s two new £7 million (US$11.2m) container cranes have not been used, other than for testing, and will be moved to create extra space for the offshore business.
The £30 million terminal, which had been due to open in the first quarter of this year, would have boasted an initial annual capacity of 70,000teu and 200 metres of quay, eventually growing to 250,000teu and a 380-metre quay. It had budgeted to handle around 50,000teu this year.
In September, the terminal turned away a Panalpina shipment of containerised and breakbulk equipment, bound for a West African power station, with no explanation.
The port will switch its focus to "growthsectors" like offshore energy.
Great Yarmouth Port CEO Eddie Freeman said: “We are reacting to the reality that demand from the offshore sector, and in particular organisations involved in energy generation through offshore wind farms, is on a steep growth curve, while in contrast, the UK container scene is still recovering from the financial crisis.
“The decision was taken in conjunction with the container terminal operator, PSA Great Yarmouth, and will remain in force until market conditions make a return to the sector viable.”
The terminal is 60%-owned by Singapore ports giant PSA International, with 40% held by Great Yarmouth port owner International Port Holdings.
Freeman said the port had the right water depth and availability of quay space and land to develop for the offshore wind farm business.
He said the port would also focus on other growth areas, such as the agricultural and decommissioning sectors.
Local press reports suggest that the port’s two new £7 million (US$11.2m) container cranes have not been used, other than for testing, and will be moved to create extra space for the offshore business.
The £30 million terminal, which had been due to open in the first quarter of this year, would have boasted an initial annual capacity of 70,000teu and 200 metres of quay, eventually growing to 250,000teu and a 380-metre quay. It had budgeted to handle around 50,000teu this year.
In September, the terminal turned away a Panalpina shipment of containerised and breakbulk equipment, bound for a West African power station, with no explanation.