UK port construction projects on hold

Of ports who originally had construction projects planned during the period that COVID-19 has been active for, 64% say they are paused for the time being. This is according to a survey by the British Ports Association (BPA) to determine the impact of the COVID-19 pandemic on port businesses.

15% of ports they are progressing at a slower pace, 13% say there has been no impact and 8% say that they have been cancelled completely.

The research also found that while just 36% of UK ports feel confident about their business outlook over the next 12 months and 86% reported either substantial or severe impacts on shipping and customer activities, 69% of ports record that they do not require financial assistance. However, many noted that if the current situation continues for a prolonged amount of time, then they will do, said the BPA.

Phoebe Warneford-Thomson, policy & economic analyst at the British Ports Association, said: “Several months into the Coronavirus pandemic, it does not come as a surprise that 86% of ports report a substantial or severe impact on their customer activities and that just 36% feel confident about the year ahead. Those with particular concerns are ports involved in passenger activities, the oil sector and manufacturing-related cargo and fish landings.”

While ports themselves do not require financial assistance, the survey found that at a time when port cash flows have been severely impacted, the vast majority of port users and tenants have also asked for assistance from ports; including rent holidays, the extending of payment terms and a reduction in harbour dues. A significant number of ports had seen requests for all three. Others have seen requests for suspensions of mooring fees, laid-up charges and a reduction in shore power costs.

The BPA will be publishing a set of sector-specific proposals in an Economic Recovery Plan for government shortly, to highlight its proposals for how ports can assist in its economic recovery.