The Council has approved £20m of investment over 10 years for Portico Shipping Ltd, the council owned terminal cargo company based at Portsmouth International Port.
This decision follows an independent report of Portico’s business which concluded that capital investment would provide the best financial return for the council, forecast to be £30.1M over the next 20 years. This will secure the future for the established global shipping and logistics operator.
The £20M investment will go towards changing the site layout to handle cargo more efficiently, create more space and new equipment to meet a growing portfolio general cargo.
Recommendations include working more closely with teams at Portsmouth International Port and developing Portico to manage an increase in opportunities by creating a port services provider, Portico Services.
Portico remains the UK market leader for banana imports and has a growing cargo portfolio. This includes containerisation, aggregates, agribulks, project cargo and general ad hoc cargo. More recently it has expanded its specialist services, with the launch of Portico Logistics, a customs agency, freight forwarding, transport and warehousing division.
Steve Williams, Portico’s managing director said:
“This capital investment secures the future of Portico. allows us to expand our services even further and provides certainty for major customers.
“We have a really ambitious team who continually look at ways the business can thrive. With the creation of Portico Logistics we have strengthened our position in the industry and the further development of the organisation proves there are exciting times ahead. This investment will support us to become profitable over the next few years.
“We’re grateful the council supports our plans and we’re looking forward to seeing our proposals become a reality.”
Portico will have a rolling annual review of its 20 year business plan by the council’s Company Advisory Board. This is to keep investment on track.
Cllr Steve Pitt, Leader of Portsmouth City Council said:
“Portico is considered a significant player in the industry and needs investment to match so it can continue to provide revenue to the council and play a critical role in the local and regional economic supply chain.
“Following a robust independent review, experts recommended that capital investment would secure Portico’s future and its growth as a marker leader, while returning an investment for the council.
“Portico supports Portsmouth as a leading marine city ,and continued investment will benefit the council and economy”