UK government sees bond issues as road to port privatisation

THE British government is to encourage privatisation of ports by selling bonds to raise revenue to fund modernisation and future development for ports and transport infrastructure.

According to the Treasury commercial secretary Lord Sasson, the 52-page report on the National Infrastructure Plan privatisation at trust ports is aimed at "UK's growth and competitiveness".

Norfolkine, SeaFrance and P&O lashed out at the "meaningless waste of time" devoted to privatising the ferry port Dover in Dover Harbour Board's (DHB) consultations in light of the companies' contributions of GBP60 million (US$95.83 million) should the port sell at a reported price of GBP300 million.

The DHB chief executive officer Bob Godfield confirmed that it is unable to borrow GBP420 million due to its status as a trust port, according to London's International Freighting Weekly.

The National Infrastructure Plan said that by funding expansion it could "realise these transport priorities through public sector investment, regulatory change and leveraging in private sector capital which include rail freight link proposals on the East Coast Mainline between Felixstowe and Nuneaton (near Birmingham), and between Southampton and the west coast.

Of the 50 trust ports, the government plans for voluntary privatisation have yet to be realised despite requests to Tyne, Belfast, Aberdeen and Milford Haven, who wish to remain a key energy hub and remain trust ports.

London's Financial Times reported that the CEO of Milford Haven Port Authority denied plans for a sell-off. "The government has accepted this recommendation, albeit subject to the requirement that we continue to operate and develop on a commercial basis," said Alec Don.

Source: SchedNet