Durham Tees Valley airport applying to Regional Growth Fund for freight distribution centre

Date added: 26 May, 2012

An expansion plan is being drawn up for loss-making Durham Tees Valley Airport and will be handed to the Government within weeks.  The airport is preparing a bid to the Regional Growth Fund to develop a 250-acre south side of the airport, for freight services/distribution (does not say whether any air freight is included). The application will include a new internal road, installing gas, electricity and drainage connection, and perhaps new buildings.  Peel Holdings Ltd, the airport’s owner (owns 80%), has to submit the bid to the £1bn fund by the deadline of June 13th. There has been an 80% fall in the number of passengers since 2006, from 912,000 down to 190,000 in 2011.  The focus on freight confirms the expectation the airport will find it difficult to increase passenger numbers. However, their airport’s air freight tonnage has plummeted to almost nothing in the past two years.

Airport expansion plan revealed by firm

25th May 2012

By Rob Merrick  (The Northern Echo)

AN expansion plan is being drawn up for loss-making Durham Tees Valley Airport and will be handed to the Government within weeks.

Airport bosses are preparing a bid to the Regional Growth Fund to develop the 250-acre south side of the airport, near Darlington, for freight services.

The application will seek to improve access to the site with a new internal road, as well as installing gas, electricity and drainage connections.

It could include new buildings.

However, Peel Holdings Ltd, the airport’s owner, is racing against time to submit the bid to the £1bn fund by the deadline of June 13.

MPs hailed the bid, revealed at a meeting with Transport Minister Theresa Villiers, as further proof of Peel’s commitment to the airport, after a turbulent period. Peel is the majority owner again, owning nearly 80 per cent of the business, with the rest in the hands of six North-East councils.

Despite an 80 per cent drop in passenger numbers in the past six years (190,000 in 2011 compared to 912,000 in 2006), the airport was given a big vote of confidence from airline KLM and unveiled a new marketing and investment plan.

However, it appeared the focus on freight reflects growing frustration that Government policy and the struggling economy will make it difficult to increase passenger numbers.

Explaining the growth fund bid, Peter Nears, Peel Holdings’ strategic director, said: “We want to open up the south side of the site for freight distribution, which is only a small part of our business at the moment.”

Mr Nears described the meeting as extremely positive, but said APD must be cut. He added: “The passenger market is very difficult at the moment.” He also criticised the Government’s focus on Heathrow and a proposed airport in the Thames Estuary, saying: “They call it a national hub, but unless it serves Durham Tees Valley and other airports, it is not doing that job.” The comment reflects long-standing difficulty in securing lucrative slots at Heathrow, an issue that Ms Villiers pledged to explore with the European Commission.

Phil Wilson, the Labour MP for Sedgefield, who organised the meeting, said: “It is obvious that the owners see a future in Durham Tees Valley and MPs will work with them to ensure that success.”

James Wharton, the Tory MP for Stockton South, said: “Everyone is pulling together to support our local airport and secure its future. There is a real consensus that we want it to succeed.”

Posted: Saturday, May 26th, 2012. Filed in News about Airports, Recent News.