Timber business at the Port of Newport will increase significantly following the announcement of a £4.6m investment in new storage facilities by Associated British Ports (ABP).

The development, to be completed by June 2003, is the result of a long-term contract agreed in principle with Saint-Gobain Building Distribution.

Some 11 acres around the port’s North Dock will be developed for imports of timber, mainly from Scandinavia and the Baltics.

ABP, which runs the port, will also acquire a new forklift truck fleet to help unload the timber cargoes from ship to quay.

&#8220This is a very significant investment for the Port of Newport, which further consolidates its reputation as a major forest products centre in the UK ”

Budha Majumdar, port director ABP South Wales Ports

Budha Majumdar, port director of ABP South Wales Ports, said: “This is a very significant investment for the Port of Newport, which further consolidates its reputation as a major forest products centre in the UK. It highlights the success of ABP’s growth strategy, which is to attract new business by investing in first-class facilities.”

Meanwhile, ABP Holdings plc says its ports business continued to grow in 2002. Underlying operating profit from its UK ports and transport activities in the year ending December 31, 2002 is expected to grow by some 3%.

Imports of forest products have increased but soaring insurance costs following the US terrorist attacks in 2001 will have an impact on operating margins.