As Canadian owner Brookfield Asset Management readies for the auction of Teesside-based PD Ports, potential bidders are lining up for the £1.2 billion sale. The ports operator, which employs 1,400 staff across 11 UK locations, has caught the attention of several interested parties, including Peel Ports and Macquarie, according to industry sources. Investment banks have reportedly begun reaching out to potential suitors for PD Ports, which also has operations in Felixstowe, Hull, and Immingham in Lincolnshire.
The South Tees Development Corporation (STDC), chaired by Lord Ben Houchen, a close ally of former prime minister Boris Johnson, is preparing to submit a bid alongside joint venture partners. However, there are concerns within Houchen’s camp that they may be excluded from the process due to previous legal disputes between Houchen and Brookfield. In 2021, a planned auction of PD Ports was called off amidst a legal row over access rights, with a High Court judge ultimately ruling in PD’s favour.
City sources suggest that Peel Ports, the industrial conglomerate owned by billionaire John Whittaker and overseas pension and infrastructure funds, and Australian investment giant Macquarie have shown early interest in the sale. Associated British Ports and DP World, the Dubai owner of the London Gateway port and P&O Ferries, are also believed to have been contacted regarding their interest in PD Ports.
PD Ports, which began with the creation of the Tees Navigation Company in 1808, has grown in importance alongside the industrial development of Middlesbrough and the surrounding area. The company’s marketing material from the aborted sale disclosed that it has 2,400 acres of freehold property and was generating £75 million in annual earnings before interest, tax, depreciation, and amortisation, with sources close to PD Ports indicating that this figure has since risen to £100 million.
Brookfield, now chaired by former Bank of England governor Mark Carney, acquired PD Ports for £1 in 2009, agreeing to take on the company’s substantial debts. The ports operator is well-positioned to play a crucial role in the industrial revitalisation of the northeast through Teesside’s tax-efficient freeport status and its proximity to Teesworks, a joint venture between Houchen’s STDC and two local businessmen to redevelop a 4,500-acre brownfield site.
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