Peel Ports has agreed to partner with one of the world’s largest agricultural processors ADM Arkady to expand its operations at the Port of Liverpool, which could include “significant investment” in storage and distribution facilities.
Part of the Archer Daniels Midland Company, ADM Arkady will now consolidate its regional imports and will focus on importing up to 1m tonnes of animal feed through Peel Ports’ Liverpool site, as well as its KGV port in Glasgow.
The exact nature of the investment is yet to be finalised, but Peel Ports and ADM will work on a collaborative partnership basis to identify how warehousing and operations facilities can be expanded and improved.
The contract with ADM Arkady is “long-term”, according to Peel, although the exact length of the deal has not been disclosed.
Peel Port’s site at Seaforth includes Liverpool2, the £400m deep-water container terminal, opened in 2016.
Mark Whitworth, chief executive of Peel Ports Group, said: “Our long-term agreement with ADM Arkady is a welcome boost to operations in Glasgow and Liverpool. We are in the process of finalising plans for the storage and distribution facilities to accommodate ADM Arkady’s business model.
“With strategic port locations in the north of England and Scotland we are in a unique position to work with ADM Arkady as it continues its growth in the UK, helping create an efficient, more cost-effective supply chain for its products and customers.”
Graham Atkinson, managing director at ADM Arkady said: “Combining Peel Ports Group’s extensive port network and expertise in handling and warehousing together with ADM’s global supply chain makes an unbeatable partnership that will benefit UK agriculture in the coming years.
“With the scale and efficiencies that these new port arrangements provide we are confident that we can bring the highest quality feedstuff products into the UK at prices that deliver best value to our customers.”
The contract with ADM Arkady will replace Peel Ports’ previous contract with Cefetra to handle its agriculture operations out of Glasgow, which was not renewed by mutual agreement.