Hargreaves Services plc (AIM: HSP), a leading provider of transport and support services to the energy and waste sectors, is pleased to announce a new five-year coal import agreement with Associated British Ports (“ABP”) with effect from September 2006.
The agreement will see Hargreaves increase the volume of coal it currently imports by 400,000 tonnes per annum through the Port of Immingham from South America and Russia for the UK power-generation industry. The agreement also includes the leasing of storage space to Hargreaves at the western end of the port.
As a result of this Associated British Ports is set to invest £3.7 million in new cranage for Humber International Terminal 1, the dedicated dry bulks-handling terminal at Immingham. This includes two new cranes, including a £2.6 million rail-mounted crane, to handle the additional throughput the new agreement will generate at Humber International Terminal 1.
This is the first major agreement to be signed since Humber International Terminal 2 was officially opened at the end of May this year by HRH The Princess Royal. The terminal, which was built at a cost of £59.5 million, is the single largest project ever to be undertaken by ABP. The extra capacity provided by Humber International Terminal 2 has enabled her sister terminal to receive additional tonnage.
Gordon Banham, Chief Executive of Hargreaves, said: “Our trading relationship with ABP is an important part of our aim of becoming the leading UK importer of carbon products. The opening of Humber International Terminal 2 provides enormous opportunity for Hargreaves to grow our business at Immingham significantly on the back of surging demand for coal from the UK’s power-generation industry and we are grateful of the support in concluding the deal by the team at ABP Immingham especially Nick Palmer and Simon Brett.”
Nick Palmer, ABP Port Director for Grimsby & Immingham, said that the agreement is a positive sign for the terminal’s future:
“This agreement was made possible by our investment in the extension of Humber International Terminal. It is by working with quality customers, such as Hargreaves, that we can confidently look to a bright future for the terminal and the port. Hargreaves has been importing coal through the first phase of Humber International Terminal since 2003. In October 2004, it saw its throughput increase significantly, and this has continued to grow.”
Enquiries
Hargreaves Services plc
Gordon Banham 0191 373 4485
Peter Dillon 0191 373 4485
Buchanan Communications
Diane Stewart/Amy Rajendran 020 7466 5000
Andrew Kitchingman/ Andrew Emmott
Brewin Dolphin Securities 0113 241 0130
Asssociated British Ports
Nick Palmer 01472 359 181
ABP Port Director, Grimsby & Immingham
Tristan Garrick/Margie Collins 020 7430 1177
ABP Corporate Communications
