City’s gateways for trade and travel

May 26 2008 by Alex Turner, Liverpool Daily Post

After decades of stagnation or decline, Alex Turner reports on the resurgence of Merseyside’s docks and airport

LIVERPOOL is re-establishing itself as a major gateway for trade and travellers alike, with the growth and development of its two key infrastructure jewels, the Port of Liverpool and Liverpool John Lennon Airport (JLA).

The common thread that runs between the two hubs is property and transport firm Peel Holdings.

It purchased 76% of the airport in 1997, before taking complete control four years later. And four years later, in 2005, it purchased Mersey Docks and Harbour Company.

There are big plans for both operations, which have enjoyed a resurgence after decades of stagnation or decline.

When Peel took over the airport, airlines flew to just three scheduled destinations. That figure is now nearer 60, making it the third-largest regional airport for international scheduled flights, behind Birmingham and Manchester.

JLA is celebrating its 75th birthday this summer, and in the past decade it has become one of Europe's fastest-growing airports.

It has increased its annual passenger numbers from 875,000 in 1998 to 5.47m in 2007.

The growth rate in 2007 alone was 10.2% and, for the first time, more than 500,000 passengers were handled in one month, during May, 2007.

The airport is also expected to declare its maiden profit when it releases its figures for the year.

JLA aims to maintain this growth rate and handle 6m passengers in Capital of Culture year.

However, Neil Pakey, managing director of JLA, is not expecting the celebrations to have a distorting effect on the figures.

He said: “Some people expect a spike in 2008, but the build-up is over the last five years, when we have had double-digit growth.

“We can also expect a legacy effect.”

More than £100m has been invested by Peel Holdings over the last decade. The money has been used for improvements that include the £42.5m passenger terminal extension, which tripled the building’s size and passenger capacity when it was completed in 2002.

The investment cash has also been spent on a range of infrastructure works, including a control tower, hangars, apron extensions, runway refurbishment and upgrade and other ancillary projects.

Spring, 2009, will see the completion of a £25m development of a 157-room hotel and a multi-storey car park with 869 spaces.

However, Peel’s investments at the Port of Liverpool are even more dramatic.

A £100m post-Panamax in-river container terminal planned for Seaforth will, when it’s completed in 2011, nearly double the port’s capacity to 1.5m twenty-foot equivalent units (teus) – or containers, to you and me.

In 1990, the port handled 219,000 teus, but, 16 years later, the amount of cargo had nearly trebled, to 635,000 teus.

And, as with JLA, 2007 saw growth of more than 10%. More than 34m tonnes of cargo passed through last year, and it now handles more container trade with the USA and Canada than any other port in the UK.

The new terminal will enable volumes to grow considerably as Liverpool will be able to welcome post-Panamax ships, vessels which can hold up to twice as much cargo as traditional, Panamax, ships.

It will be able to hold two ships at a time, allowing the port to compete with Felixstowe and Southampton, the two UK ports that handle post-Panamax ships presently.

Frank Robotham, marketing director of Peel Ports Group, said: “The new terminal will be a further significant boost to industry in the north of England and beyond.

“To date, post-Panamax vessels have only had the option to berth in UK south coast ports.

“Once the new terminal is open in Liverpool, then industry throughout the North and Midlands can enjoy the dual benefits of being able to respond to the demands of international logistics through their own local port, utilising these larger vessels which bring their own economies of scale.”

Increased terminal capacity demands more quayside storage, and in April plans were approved for the second phase of a multi-modal logistics hub that will add more than 400,000 sq ft of warehousing.

Phase one of Liverpool Intermodal Freeport Terminal, which created 600,000 sq ft, is fully let, while completion of phase two will expand the Port’s logistics capacity to 4m sq ft.

In addition, the £6m Liverpool Produce Terminal (LPT) will provide a 90,000 sq ft cool store with a capacity for 5,000 tonnes of fruit and vegetables when it opens later this year.

Mr Robotham believes LPT provides benefits beyond simply increasing capacity.

He said: “The new terminal offers the food industry a way of reducing food miles and, at the same time, creates a unique opportunity for Peel Ports to provide both northern and southern gateways into the UK's fresh produce market through its ports at Liverpool, and Sheerness, in Kent.

“The development also further consolidates Liverpool's position as the most diverse cargo handling port in the UK.”

alex.turner