Pension blackhole sees pilotage costs soar

PORT operator Associated British Ports is facing criticism after imposing above inflation charges on the Humber to help plug a massive hole in a pension scheme.

The charges for pilots who guide ships to ports on the Humber rose by five per cent on New Year’s Day - on top of a standard increase of 2.6 per cent.

Shipping firms have been warned they could face further surcharges which “are likely to be higher than five percent” to cope with the deficit in the Pilots’ National Pension Fund.

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The deficit was assessed two years ago at £187m, and was likely to have deteriorated “significantly” since then.

A letter explaining the increases, which follow a High Court ruling in 2010, said the majority of harbour authorities would be affected.

It added: “We feel it is important to forewarn you the future PNFP deficit surcharges are likely to be higher than five per cent and may need to be introduced part way through a calendar year.”

Goole councillor Brent Huntington said the increases demonstrated a “total lack of interest or respect in helping any of our Humber businesses”.

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He said Holland had kept port fees at the same level to stimulate growth and operators locally had been “astounded” by the rises.

He said: “At a time when all local MPs, councillors and unitary authorities are bending over backwards to try and get more business and trade in the Humber, ABP has put in a stumbling block which could make business go elsewhere.”

Current and former pilots from around the UK are members of the pension fund, which like many others are struggling because of poorly performing investments.

The independent trustees responsible for the scheme went to the High Court to determine who was liable for the growing deficit and were subsequently granted powers to levy deficit contributions on the majority of “competent harbour authorities” in the UK.

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In a statement ABP said: “ABP understand the impact that this surcharge will have on UK port users and, consequently, at ABP operated facilities we have elected to introduce the surcharge on a staged basis in order to mitigate this impact as much as possible.

“We are aware that a number of other pilotage providers are levying similar or higher surcharges.”

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