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Dover cost fears as privatisation looms

29th June 1995, Page 10
29th June 1995
Page 10
Page 10, 29th June 1995 — Dover cost fears as privatisation looms
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Which of the following most accurately describes the problem?

• Hauliers using the port of Dover could face higher costs following an announcement by Transport Secretary Brian Mawhinney that he intends to privatise the port.

The move, which heralds similar changes at Ipswich and Tyne, is supported by forecasts from the Department of Transport that the sales would improve efficiency and service.

Privatisation will affect over a million truck movements a year through Dover alone. The DOT says any change in port fees for international operators will be "a matter for the new owners".

At present the three ports, which are run by trusts, are compelled to plough back any profits. Dover says it has invested £100m and reduced its borrowings to zero over the past 10 years.

The Freight Transport Association supports privatisation in principle, saying it has "not been conscious of either a service or cost change at either of the five ports already privatised".

The 1991 Ports Act gave the Transport Secretary the power to direct many trust ports to commit themselves to privatisation. Since then the ports of Clyde, Forth, Medway, Tees & Hartlepool and Tilbury have been given a market value by the Government and then sold. The sale of Dundee is also underway.


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