ABP lifted by 7% rise in sales at its ports

Associated British Ports, the UK's leading supplier of port services, yesterday revealed trading remained steady with turnover in the first half ahead by at least 3 per cent.

The uplift in sales was boosted by an increase of at least 7 per cent in sales from its ports and transport divisions.

The European Union ports directive, however, could have serious repercussions for Britain's ports. The directive, which was approved by the European Parliament on 17 June, ensures the privatisation of state-owned ports and limits private operating leases on them. There have been fears that this could leave the port industry suffering the same difficulties as the railways, with shareholders and profits being put ahead of safety and the needs of consumers.

Bo Lerenius, ABP's chief executive, was keen to allay concerns. "We cannot say the directive is not unwelcome ... it is unwelcome, but it is manageable," he said. He stressed that many of the flaws the directive attempts to resolve do not apply to the UK. "The porting companies in this country are very efficient, so the problem of lack of competition is not applicable."

An analyst who asked not to be named added that the directive would be "a small but manageable problem" and any safety fears concerning privatisation would not "materialise into anything serious".