Following Cefetra’s decision not to renew its contract to use the King George Vth (KGV) agribulk terminal at Glasgow, owner Peel Ports has reached an agreement with ADM Arkady to use the facility.

Cefetra and Peel Ports say their mutual agreement not to renew their contracts at KGV in Glasgow followed a comprehensive review and “was not taken lightly”. Accordingly, ADM Arkady has now signed a long-term contract with Peel Ports Group. Arkady says it will partner with Peel Ports to develop the Glasgow port, through expanding the site and enhancing its facilities to handle animal feed. At the same time, it will “significantly expand its northern hub operations in Liverpool”.

Arkady adds that the move will enable it to consolidate its regional imports and service its North of England and Scotland markets better, with up to 1 million tonnes of animal feed ingredients imported through both terminals each year.

Access to the port and its warehouses will be unchanged over the next few weeks until the contracts expire, although Cefetra has commenced its phased exit to another location. Peel Ports says no interruption in supplies is envisaged over this period, although it has plans to activate third party contingency stocks should any issues arise. Cefetra is due to issue a statement later this month.

“These two new deals further strengthen the relationship between Peel Ports Group and ADM Arkady,” says ADM Arkady managing director Graham Atkinson. “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.”

Mark Whitworth, chief executive of Peel Ports Group, adds: “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.”