£60m investment deal at Port of Tyne

Bosses at the Port of Tyne have secured a £60m deal to enable them to press ahead with an ambitious investment programme.

Monday, 4th March 2019, 11:51 am
Updated Monday, 4th March 2019, 11:58 am
The Port of Tyne has secured a 60m investment deal
The Port of Tyne has secured a 60m investment deal

The company has secured the cash from Lloyds Bank Commercial Banking.

The five-year agreement - comprises a £30m revolving credit facility and a £30m term loan - provides the port with capital to develop a number of major infrastructure projects.

The Port of Tyne - which contributes £690m to the North East economy - occupies a 250-hectare site on the River Tyne and is the second largest car exporting port in the UK.

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The port also handles a diverse range of cargoes including containers, commodities, manufactured and retail goods, renewables and offshore services.

As a key supporter of the government’s Maritime 2050 strategy, the business aims to play an important role in the UK’s long-term future as a maritime nation.

Mark Stoner, chief financial officer at Port of Tyne, said: “We are a major gateway to the North, thanks to connectivity by sea, road and rail, which gives customers easy access to markets across the UK and around the world.

“The region’s economy is reliant on the success of the port, which is why we reinvest all profits back into the business. As a self-financing organisation, this approach is essential to future growth – for us and for the businesses we work with in the North East and beyond.

“This partnership with Lloyds Bank will help us retain our position as one of the UK’s most innovative and efficient deep-sea ports.”

Alison Smith, business development director in Large Corporates at Lloyds Bank, added: “The Port of Tyne operates a vital trading gateway to worldwide markets, making it a hugely important asset to the regional economy.

“We look forward to working closely with the Port of Tyne over the coming weeks, months and years. Supporting the North East’s infrastructure goes hand in hand with our commitment to helping Britain prosper.”

Lloyds Bank has committed to lending up to £700million this year to firms across the North East, and up to £18billion across the UK. This is funding that can help businesses develop flexibility and ensure they’re equipped to make the most of opportunities to come.

This is the latest in a series of landmark North East infrastructure deals supported by Lloyds Bank, which includes leading the financing of the 299MW MGT Teesside power station.