Car giants threaten to pull out of UK ports

As the rates crisis spirals and port tenants warn of bankruptcies, job losses and an end to investment, a number of automotive companies are said to be considering joining a legal challenge against the Valuation Office Agency and Communities and Local Government Secretary Hazel Blears over the imposition of backdated rates.

CAT said a £500,000 backdated business rates bill could force the closure of its Renault import centre at Teesport, with the loss of more than 80 jobs – and might lead to the withdrawal of value-added and storage activities from the UK entirely within 12 months.

Stuart Warren, CAT’s region director and UK managing director, said the rates demands represented “a significant drain” when the automotive and logistics industries were already under severe strain.

Peugeot/Citroen and VW are said to be considering their future at the Port of Sheerness, where they are facing backdated rates demands of £3m and £2.8m respectively.

BMW, in a letter to DFDS Tor Line – which has received a backdated rates demand of £9.9m for its operations at Immingham – said it was “extremely concerned” about the prospect of increased costs as a result of the new rates system.

“In the event this should happen, BMW would be forced to re-examine its decision to handle their UK distribution from the ports of Immingham and Southampton and instead move the operations back to the port of exit on the continent, as a number of our competitors already do.”