Economic summary

Recent trends and changes in the container port market provide the background to Bristol Port's decision to create new facilities at Avonmouth.

• the rapidly increasing size of container ships means there are insufficient berths in the UK capable of handling the largest vessels;  and with container volumes in the UK forecast to rise to about 20 million TEU by 2030, existing and planned container capacity cannot meet demand beyond 2020
• there is an imbalance between the established location of UK ports and the distribution of inland container destinations; higher fuel and congestion costs mean the distance travelled to final destination is increasingly significant for cargo owners and the UK economy as a whole
• these factors are matched by an urgent need to improve energy consumption and reduce freight carbon emission levels, and increase the use of sustainable modes of transport
• a deep water facility would open up options for new transhipment trade from Europe’s Atlantic  seaboard and future changes in the routeing of world container movements

Studies show that Bristol Port is closer to a higher proportion of the UK’s container market than other ports in the South and East, and has a strong competitive position in a national and international market increasingly sensitive to location, cost and carbon emission factors. The Port is well placed in relation to regional and national road and rail networks.

There are also potential benefits of port expansion for the regional and local economy:

• Bristol Port has an important role in redevelopment of the South West’s largest industrial centre and can reinforce that role through growth of new port facilities – as recognised in regional and local economic planning strategies
• already a major employer with over 7,600 jobs directly or indirectly reliant on the port, the expansion is estimated to generate almost 1,800 new jobs - 1,500 by direct employment and the rest by economic multiplier effects; some 360 new full time equivalent jobs are expected during the construction phase.
• studies by Bristol Port estimate that the proposed terminal will generate over £114m a year in the local economy through employment and multiplier linkages.

See the Container market and Economic benefits sections for more information.  See also Container traffic emissions.