Portsmouth City Council has approved a £20 million investment over the next 10 years for Portico shipping, a major global shipping and logistics operator owned by the council. The decision, made during a Full Council meeting on Tuesday, October 15, follows an independent review that recommended capital investment as the best way to ensure the long-term success of Portico, forecasting a financial return of £30.1 million over 20 years.
Strengthening Portico’s Future
The independent report highlighted that substantial investment would be essential for securing Portico’s future and expanding its role as a key player in the industry. In response, the council plans to work more closely with teams at Portsmouth International Port and develop Portico’s capabilities by establishing a new division, Portico Port Services, to manage the anticipated increase in opportunities.
Portico has maintained its position as the UK’s market leader in banana imports while also expanding its cargo portfolio to include containerization, aggregates, agribulks, project cargo, and general ad hoc cargo. Recent developments include the launch of Portico Logistics, a division specializing in customs agency services, freight forwarding, transportation, and warehousing.
Council’s Vision for Growth
Cllr Steve Pitt, Leader of Portsmouth City Council, underscored the importance of investment to maintain Portico’s competitive edge in the industry. He noted that despite challenges posed by recent global events, the council’s commitment to investment would secure Portico’s future and ensure its continued contribution to the local and regional economy.
Portico has faced several setbacks, including the creation of a government-mandated Border Control Post (BCP) that reduced its available land for commercial opportunities. Additionally, planning delays for the development of an aggregates terminal contributed to an estimated £12 million in lost revenue over the past five years. Despite these hurdles, Cllr Pitt emphasized Portico’s importance to Portsmouth’s standing as a leading maritime city, with the new investment expected to yield positive economic outcomes for both the council and the wider region.
Ambitious Plans for Expansion
Portico’s managing director, Steve Williams, expressed optimism about the future, noting that the capital investment would allow Portico to expand its services and provide greater certainty for its major customers. The funds will be used to enhance the site layout, create more space, and acquire new equipment to handle the growing demand for general cargo.
Williams praised the ambition and dedication of Portico’s team, which has been instrumental in the company’s recent growth, particularly with the creation of Portico Logistics. He emphasized that the investment would not only ensure Portico’s profitability in the coming years but also position the company for continued growth and success.
Portico’s 20-year business plan will be subject to a rolling annual review by the council’s Company Advisory Board to ensure the investment remains on track and supports the company’s ongoing development.
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Source: porticoshipping.com
