Council backs £9.9m investment package for Portsmouth International Port
The investment is needed for refurbishments, storage and equipment
Portsmouth International Port is set to receive almost £10m of investment over the next three years.
In a recent council cabinet meeting, Portico Shipping Ltd has outlined a £9.9m capital requirement between 2026/27 and 2028/29. The funding will come through a council loan and a grant already secured by the company.
Portico provides cargo handling and stevedoring services from Portsmouth International Port and is wholly owned by Portsmouth City Council.
The company has already drawn down £16.5m from an expanded £28.6m council loan facility, with the money invested in warehousing, building refurbishments, equipment and IT infrastructure.
The company has also secured £4.8m in Freeport SEED funding to redevelop its cargo terminal and create additional storage space for containers and general cargo. The work is expected to be completed by the end of this year.
The report states: “The Company operates in a highly competitive market and needs to be able to offer shippers an efficient and cost effective operation.”
Portico forecasts income rising from £26.5m in 2026/27 to £31.1m in 2028/29, an increase of around 17 per cent over three years. However, it is not expected to turn a profit until 2028/29.
It adds that the business remains exposed to “market conditions and commercial volatility”, including changes to UK EU trading arrangements and uncertainty over future border arrangements.
However, the council’s Company Advisory Group backed the plans following a review in April.
The report said: “There is strong management governance and cost controls, and encouraging growth areas within the logistics department.”
Cllr Lee Hunt asked about the future of the port with Local Government Reorganisation on the horizon, which would merge councils in Portsmouth, Havant, Fareham and Gosport.
Mike Sellers, the Port Director, clarified that the council is the shareholder, which will transfer to the new authority.
While Portico remains an independent company, it still needs a shareholder to sign off its budget. What the new authority decides to do with the port remains unknown.
Cllr Darren Sanders asked whether the works needed at the port would be completed before Local Government Reorganisation. In response, Mr Sellers said construction is expected to finish between September and October next year.