Teesworks creates 65 jobs as South Bank Quay operator awarded contract

Aberdeen-based ASCO has been awarded a three-year contract to provide a range of services at South Bank Quay, a 1km-long quayside on the River Tees at the enormous redevelopment project.

It’s thought the awarding of the contract will create 65 direct jobs.

ASCO CEO, Mike Pettigrew, said: “The South Bank Quay is a flagship project for ASCO which will propel us along the right track right at the start of 2024, en route to achieving our future goals. It confirms and reinforces our intention to make significant investment into increasing our footprint in the new energies sector over the coming years.

“Winning such a major contract is a testament to the work that we have done over the years where we have delivered world-class logistics services across the energy industry while contributing to the economic growth of the communities in which we operate.”

South Bank Quay’s construction was funded by a £20m grant from the UK Government and a £106.9m loan from the government’s UK Infrastructure Bank (UKIB) to Tees Valley Combined Authority (TVCA). TVCA then provides this funding on the same terms to its subsidiary South Tees Development Corporation (STDC).

The quayside itself was sold to Teesworks Ltd, which is 90 per cent owned by private investors led by Chris Musgrave and Martin Corney, in late 2022. Teesworks Ltd was established as a 50-50 public-private partnership between the private partners and STDC, however a controversial share transfer which left the public with only 10 per cent equity in the vehicle led to accusations of “industrial scale corruption”.

A subsequent review commissioned by the government found “no evidence” of illegality, but made 28 recommendations, and had concerns about the funding of South Bank Quay. It notes the original business plan approved for the loan from UKIB was based on public ownership of the quay.

It also notes Teesworks Ltd will only pay back money owed on the loan if its operations at the quay are profitable.

ASCO is believed to start fulfilling its contract at South Bank Quay this summer, with the first vessel scheduled to berth in the Autumn.