Member Article

Tata Steel and ABP sign extended Immingham agreement

Tata Steel has announced the signing of a 15-year deal to continue using specialist coal and iron ore unloading facilities at Associated British Ports’ (ABP) Immingham Bulk Terminal at the Port of Immingham.

Iron ore and coal arriving at Immingham are loaded onto dedicated trains before being transported to Scunthorpe where the materials are used to make steel.

The new 15-year lease will allow Tata Steel to continue to bring around seven million tonnes of coal and iron ore per year into the Scunthorpe works. The deal will also allow Tata Steel to unload coal for other companies when its own stocks are not being dealt with.

ABP’s Port of Immingham is the UK’s premier dry bulk cargo facility, handling more than 23 million tonnes of cargo to support British manufacturing.

In 2012 ABP’s operation at Humber International Terminal adjoining IBT celebrated handling 100 million tonnes of cargo in less than 12 years of operation.

Jon Rawling, regional procurement director for Tata Steel, said: “This deal gives us sole use of the land and priority use of the jetty where our ships are unloaded.

“This means we are better able to control when, and in what order, vessels arrive and are unloaded to suit the needs of the Scunthorpe site.”

Mr Rawling added that the deal had an initial term of 15 years, but could be extended to 25 years.

John Fitzgerald, ABP port director Grimsby & Immingham, said: “This is an important deal for both companies and is crucial for all those involved in supporting the supply chain into the Scunthorpe plant. Ports are a vital component in the UK’s manufacturing sector.

“The progressive aspect of this deal is how it also provides for greater use of existing capacity for the wider customer base the port serves.

“We have had a strong relationship with the Scunthorpe plant for many years and we look forward to maintaining and developing that through this new deal.”

This was posted in Bdaily's Members' News section by Mark Lane .