Evidence presented at the High Court this week revealed Teesworks Ltd and the Ben Houchen-led South Tees Development Corporation (STDC) attempted to take 90 per cent of Teesport operator PD Ports’ revenues where tenants at the former Redcar steelworks site were concerned.
Representing PD Ports, Andrew Walker KC revealed an offer was made in January 2023 by STDC, which brought the legal claim in March 2021, and Teesworks Ltd to withdraw their case and grant the disputed access rights if the port operator agreed to pay a 90 per cent fee to them as “dues payable on cargo and tonnage of ships” coming through the port. It would have meant PD Ports retained only 10 per cent of revenue for handling goods which were destined for tenants at the Teesworks estate.
In court, Mr Justice Rajah said the approach taken by STDC and Teesworks Ltd in January 2023, “makes settlement difficult.” In July 2023, following mediation between the parties, Teesworks partner Chris Musgrave wrote to PD Ports CEO Frans Calje, saying, “I have treated your comments with the contempt they deserve,” and asked Mr Calje for details of PD Ports’ tenants at the Teesport estate in order to “warn” them the pending court case could hinder development. Mr Calje refused this request.
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