P&O Ferries closes Teesport-Zeebrugge connection

British carrier P&O Ferries announced the decision to withdraw the cargo connection between Teesport port and Belgian Zeebrugge. The merger, maintained continuously for more than fifty years, will be withdrawn at the end of July of this year.

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The decision to terminate the merger was taken as part of a review of the company’s operations, which is part of the group. DP World from Dubai. As indicated in the official communication, the Teesport–Zeebrugge route is not part of the updated strategy for the development of a flexible and differentiated Northern Sea network. The carrier shall ensure that termination of service does not entail a reduction in employment.

P&O Ferries withdraws from Teesport–Zeebrugge route

The British freight operator P&O Ferries reported that the cargo connection between Teesport port in north-eastern England and Belgian Zeebrugge was completed. The route, operated continuously for more than half a century, will be withdrawn at the end of July 2025.

The popular freight service between Britain and the European continent was carried out by the ro-pax unit Norbaybuilt in the Dutch shipyard in 1994. After the end of activity on this route, the vessel shall be deployed to operate other connections of the British shipowner.

The decision to terminate the service was taken as part of a review of the company's operations, belonging to DP World from Dubai. As highlighted in the Communication, the merger is not part of the new strategy for the development of a flexible and diversified transport network in the North Sea. The carrier shall ensure that the termination of the route will not result in a reduction of employment.

Concerns about the future of the Teesside region

The P&O Ferries decision was also addressed by the regional mayor of Teesside, Ben Houchen, calling it "deeply disturbing". He stressed that ports in north-east England are currently struggling with a demanding transition period, despite observed investments and development in other parts of the country.

The withdrawal of the cargo link from Teesport is another blow to the local industrial ecosystem. Only two weeks earlier, the chemical company Sabic announced the decision to permanently close the cracking plant Olefins 6– a plant transforming heavy hydrocarbon fractions into petrochemical products such as petrol and light olefins. This decision could mean a reduction of up to 300 jobs. Tensions increase also around Ensus, a bioethanol specialist who signalled the possibility of ceasing operations due to changes in trade between Britain and the United States.

Strategic context and ownership uncertainty of PD Ports

P&O Ferries' decision to withdraw the route coincided with the increasing uncertainty surrounding the further fate of the port operator PD Ports. The company, remaining in the investment portfolio of the Canadian Brookfield fund, is currently subject to the sale process. According to industry sources, negotiations on ownership change have been hampered, inter alia by the withdrawal of the potential buyer, Peel Ports, and the lack of binding bids from infrastructure funds.

This situation casts a shadow on the £200 million investment announced in April – the construction of the logistics and industrial centre "Teesport Offshore Gateway", which was to serve as a back-up for the offshore wind supply chain. The project may be postponed until the ownership structure of the company has stabilised.

Written by Mariusz Dasiewicz