Ports & harbour construction work surges

Ports & harbour construction work is rising as UK ports invest heavily in expansion and modernisation, creating strong demand for both civils and building contractors.

Undeterred by the potential impact of higher tariffs on trade volumes, port operators are investing to take advantage of emerging green energy sources – particularly offshore wind – and in response to the government’s Freeports initiatives.

Recent Glenigan data shows that the value of underlying project starts on ports/harbour schemes was worth £362 million in the three months to July; up more than threefold (232%) on the same period last year and worth more to the civils sector than water-related work.

Landmark project

One landmark project in the sector where work is due to get underway later this year is the £170 million Immingham Green Energy Terminal being developed on Humberside by ABP, the country’s biggest port operator.

Bouygues Travaux Publics is the civils contractor on the scheme, which has been deemed a Nationally Significant Infrastructure Project, and which will involve significant marine works along with facilities for hydrogen production (Glenigan Project ID: 22336784).

ABP is also developing conventional business space on land it owns around its ports. An application for reserved matters has been granted and a preferred bidder appointed for an £80 million scheme of eight commercial units at Stallingborough Interchange at Immingham, where work is due to start early in the new year (Glenigan Project ID: 25328834).

Meanwhile, at Port Talbot Docks in South Wales, work is due to start this autumn on Project Dragon, a £25 million fuel production facility on land owned by ABP and Tata Steel Europe (pictured). A main contractor has been appointed, and work is set to run for 12 months (Project ID: 23183566).

Expansion in capacity

Expansion in modern capacity at container ports around the country is also generating new work opportunities. As part of what is a huge £1 billion expansion planned at London Gateway Port in Essex, work on a £50 million container storage yard on the port’s Berth 6 is due to start this autumn. Gobion Construction has been appointed as the main contractor on the scheme, where work is set to run for 19 months (Glenigan Project ID: 24326067).

It follows the recent start of work on a separate £72 million storage yard at London Gateway’s Berth 5, where McLaughlin & Harvey is the main contractor (Glenigan Project ID: 25295305).

Construction on facilities to handle the busy cruise ship sector is also generating new contract opportunities. In Belfast Harbour, work started this spring on a new £100 million facility for the berthing of cruise ships and for handling cargo during the cruise ‘off-season’. Graham Construction is the main contractor on the scheme, where work is set to run until the end of 2027 (Glenigan Project ID: 16075059).

Meanwhile, there are some major new projects in the pipeline which should help maintain a buoyant workload in the ports & harbours sector.

Detailed plans have recently been submitted for a £150 million scheme at Falmouth Docks in Cornwall involving new wharf structures, an area for floating wind power activities, and the redevelopment of the existing dock infrastructure. The harbour will also be dredged to accommodate larger cruise ships (Glenigan Project ID: 25186234).