Associated British Ports is investing around $5.5 million at its port facility in Newport, South Wales, UK. The investment is being performed to meet the growing needs of Sims Group, its key port customer. Sims is an Australian-based scrap metals recycling facility.
The decision to invest in the port facility comes after the Sims Group committed to work with ABP, under a 20-year agreement, to expand its scrap metals-recycling operations. Additionally, Sims recently announces plans to build a second refrigerator recycling facility at the port.
The infrastructure works to be undertaken by ABP will include the refurbishment of a rail link to bring raw materials into the port, the enhancement of electricity supply to the site, engineering works to install a gantry crane and the provision of a further six acres of storage.
“Sims is an established and growing customer at ABP Newport. In the last two years alone, throughput at its facility has more than doubled. ABP’s investment lays the groundwork for Sims’s expansion and lifts the ceiling for even more growth in throughput at the facility. It also reflects our commitment to continue working with Sims to further build a strong and stable trade at the port,” said Budha Majumdar, ABP’s port director.
Following ABP’s investment, Sims will spend around $11 million on new processing equipment and associated works to bring the facility up to world-class standards. Tom Bird, managing director, Sims Metal, explained that this was a considered investment in a growth industry.
“Our Newport export facility has become one of our most important locations. Expenditure on a gantry crane and new processing equipment will transform Sims’s Newport operation into a state-of-the-art metals recycling facility.
“In addition the new rail link will further enhance our ability to offer export markets to our rail-connected inland operations.”
This development comes after ABP and Sims jointly secured a Freight Facilities Grant from the National Assembly for Wales to assist in the re-instating of the rail link. The rail line will run directly alongside Sims’s facility and remove nearly 53,000 lorry trips from the surrounding region’s roads, or the equivalent of almost seven million road miles over a period of ten years.
Once the expansion program is completed next year, the facility will handle more than 600,000 metric tons of scrap metal a year.