PD Ports, the UK-based ports and logistics business, is welcoming a new shareholder. Pontegadea Inversiones, the Spanish investment firm best known for its ties to global fashion retailer Inditex, has agreed to acquire a 49% stake in PD Ports from its current owner, Brookfield Asset Management.
Brookfield will retain a majority shareholding and continue its role as a long-term investor, working alongside Pontegadea to support the company’s future growth. The deal remains subject to standard regulatory approvals.
Strong endorsement of strategy
Frans Calje, CEO of PD Ports, welcomed the deal, saying it represented “a bold new chapter” for the business. “PD Ports’ ability to attract a high-quality investor is a powerful endorsement of the business, its people and its long-term vision,” he said.
PD Ports operates across 11 UK locations, including Felixstowe (logistics and warehousing), Groveport (a bulk cargo terminal on the River Trent) and the Isle of Wight (mainly contract shore services). Calje emphasised its commitment to its headquarters base on Teesside. “We are firmly anchored in Teesside and will continue to make targeted investments in our sites and our operations here and around the UK,” he said.
Brookfield stays the course—this time
This latest deal marks a return to form for Brookfield after a previously aborted attempt to divest PD Ports. In 2021, Brookfield put the company up for sale, attracting interest from both UK and international suitors, including Peel Ports and Macquarie. A controversial bid by the South Tees Development Corporation (STDC), headed by Tees Valley mayor Ben Houchen, was ultimately unsuccessful. Brookfield abandoned the sale later that year.
At the time, a spokesperson for Brookfield told The Guardian newspaper that “PD Ports is a great business that has performed very well under Brookfield’s ownership and continues to have exceptional long-term growth prospects”.
Pontegadea adds infrastructure to portfolio
For Pontegadea, the PD Ports investment marks a further step in a strategy to broaden its portfolio beyond real estate and retail. The Spanish investment house already holds stakes in critical infrastructure companies such as Q-Park, Enagás, REN, and Redeia.
The company described the deal as consistent with its “commitment to invest in innovative infrastructures with solid partners of international renown”. Pontegadea’s approach is characterised by long-term equity holdings in stable, income-generating assets.
Teesport at the heart of operations
At the heart of PD Ports’ UK operations is Teesport, a key gateway for trade in the northeast of England. The company plays a central role in the local economy, claiming a contribution of around GB£1.4 billion annually and supporting 22,000 jobs in the wider supply chain. PD Ports itself directly employs over 1,400 people.
As the Statutory Harbour Authority for the River Tees, PD Ports maintains a 12-mile jurisdiction along the river and derives a significant portion of its income from conservancy charges—levies that contributed more than 40% of EBITDA, according to Brookfield’s Q1 2021 investor letter.
Legal disputes and legacy issues
The path to this deal has not been without friction. PD Ports was recently embroiled in a high-profile legal battle with STDC and its development partner Teesworks Ltd over access rights on the south bank of the River Tees. In March 2024, the UK High Court ruled in favour of PD Ports, affirming its historic rights and ordering STDC and Teesworks to pay a combined legal cost estimated at up to GB£4 million.
Michael McConnell, PD Ports’ Group Property Director, said in a report carried at the time by WorldCargoNews.com, that “the judgment underlines that the decision by South Tees Development Corporation and Teesworks to press ahead with legal action – despite the weight of evidence in PD Ports’ favour and our repeated offers of a flexible solution to entirely accommodate their development needs – was entirely unnecessary.” The court judgement further stated that the plaintiffs believed Brookfield was looking to sell PD Ports and that controlling access to the port site might allow them “enormous leverage to buy the company at a discount and ‘flip it’ later at a higher value.”
From steel to renewables
Brookfield’s stewardship of PD Ports since acquiring it during the recapitalisation of Babcock and Brown Infrastructure in 2009 has seen a major transformation. At the time, the business was heavily dependent on a single steel-making client. After the collapse of that customer, Brookfield and the management team undertook a decade-long diversification effort. More than GB£120 million has been reinvested in infrastructure and capacity upgrades. Landmark projects include dominant supermarket chain Tesco’s GB£130 million distribution centre, a long-term biomass import contract, and land leases tied to renewable energy developments.
The business now boasts multiple revenue streams across conservancy, leasing and port services. The site has also attracted GE Renewable Energy, which selected Teesport for a wind turbine blade manufacturing facility. These moves reflect Teesport’s positioning at the centre of the UK’s renewable energy corridor, with UK Government designated Freeport status (see sister service RailFreight.com) and Core Status as a Centre of Renewable Engineering adding to the attraction.
Growth trajectory remains intact
Despite previous challenges, PD Ports is projecting a bright future. Brookfield’s 2021 forecast predicted EBITDA could double in five years—and possibly triple by 2030. With Pontegadea joining as a strategic partner and Brookfield remaining on board, the business is aiming to sustain its growth trajectory.
For Brookfield, this partial divestment offers both a capital return and continued exposure to what it still regards as “a great business”. For PD Ports, it marks an opportunity to reinforce its role as a strategic national asset in the UK’s post-Brexit, decarbonising economy.