PD Ports has announced a £29m investment for expansion of its container facilities at Teesport. The first phase will increase container capacity at the UK port from 235,000teu to 450,000teu at a cost of £15m. Subsequent phases will be investigated subject to volume growth and market stability, the company said.

“The port’s overall strategy is to expand port wide capacity, including ro-ro traffic, to at least 650,000teu, which will position Teesport as a major player in the container market,” said Frans Calje, PD Ports MD.

“In the first six months of 2010 we have achieved significant success at our Teesport container terminals, handling 129,000teu – an incredible growth of over 62% in volume compared to the first six months of 2009.”

Growth at Teesport has been boosted by the port-centric logistics concept and the opening of dedicated import/distribution centres for retailers including Tesco and Asda. Since opening an import centre at Teesport in 2006 to serve its Northern UK markets, Asda estimates it has saved over 8m road miles.

The first phase of box terminal expansion at Teesport, expected to commence in November and last approximately 10 months, will focus on the reconfiguring of the existing container terminal layout, including all associated civil works and installation of new RTG cranes. The project will be supported by the implementation of a sophisticated terminal management system.

Teesport has attracted a number of new container services over the last 18 months, including BG Freight, Samskip, Feederlink and Unifeeder, carrying boxes for major global container lines.