ABP sign landmark agreement with MOD to boost logistics capability

Associated British Ports , the UK’s largest and leading port operator, has announced a new strategic relationship agreement signed with the UK Ministry of Defence . The agreement boosts the flexibility and resilience of the UK Armed Forces sea mounting capability.
The agreement provides the MOD with access to ABP’s portfolio of ports across the UK for sea mounting (the loading and unloading of military hardware from vessels used to transport material across the world) at no additional cost to the original contract for the provision of such services at the Port of Marchwood.
Henrik L. Pedersen, Chief Executive Officer of Associated British Ports, said “As part of our strategic commitment to supporting the defence sector, ABP is proud to provide the MOD access to our network of ports across Britain for both national emergencies and routine business. By doing so, ABP is confident it will increase the resilience and capacity of the MOD’s sea mounting capability for the most demanding scenarios, whilst driving greater cost-effectiveness into routine deployments. We look forward to deepening our relationship with the Armed Forces and the strategic defence sector across the UK.”
Vice Admiral Andy Kyte CB, MOD’s Chief of Defence Logistics and Support (CDLS), said “This new arrangement greatly boosts the resilience, efficiency and agility of Defence’s Sea Mounting Capability through access to ABP’s national port estate. The relationship with ABP forms a key component of the UK Strategic Base which is critical to Defence’s ability to mount, sustain and recover force elements.”
The new strategic relationship agreement builds on the long-standing sea mounting capability at the port of Marchwood. In 2016, following a tendering process, the port was let to commerce on a 35-year lease, with the MOD as a lead customer. This model allowed the MOD to retain a sea mounting capability, but de-risk the infrastructure maintenance costs of a large and complex site. In a landmark deal, the lease also ensures that the MOD receives a share of commercial revenue generated through the port.
ABP are investing £100M in the port infrastructure at Marchwood, including jetty improvement works significantly increasing the capability of the port both for defence and commercial activities. This includes allowing the world’s largest car carrying ships to dock. Improvement and maintenance works at Marchwood will continue to ensure that Marchwood meets the MOD’s requirement now and in the future.
Marchwood is one aspect of ABP’s commitment to the Armed Forces and the defence sector more generally. Barrow, one of ABP’s portfolio of 21 ports, is fundamental to the UK’s submarine building programme. Other ports, such as Cardiff, Southampton and Hull frequently host naval vessels, not just from the UK but also NATO allies.
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