SOUTHAMPTON port owner ABP is expected to show a three per cent rise in operating profit for this year.

The company, which employs 200 people at the city docks and owns ports throughout the UK, released an upbeat trading statement for 2004.

A spokesman said: "Underlying operating profit from the UK ports and transport activities for the year is expected to grow by some three per cent compared with 2003."

Last year ABP, which is the biggest ports operator in the UK with 21 ports, recorded pre-tax profits of £145.5m, a turnover of £401.3m with net assets of more than £1,072m.

There is also good news in store for local employees on another important front - their company pension scheme is tens of millions of pounds in surplus. That is in direct contrast to many big-name companies labouring under worrying shortfalls.

Meanwhile, turnover from the core ports and transport activities are poised to rise by at least four per cent.

Southampton had a key role to play in that, with deep-sea container ships, vehicle exp-orts, roll-on/roll-off trade and cruise ships.

ABP, which also boasts a "strong operating cashflow", said container throughput in the first 11 months of this year at Southampton Container Terminals rose by 5.3 per cent.

On the downside, the company wrote off almost £50m in related costs after the government rejected the controversial Dibden Bay container port plan in April.

The share price nosedived and, in the wake of that ABP embarked on a £130m share buy-back programme to increase working capital. That figure has now been increased by a further £75m.

In a separate development, the Daily Echo also understands that the £400m ABP Group Pension Scheme has appointed Cluttons, independent property consultants, to build a £40m discretionary property portfolio.

The decision to invest in retail and commercial property was reportedly made following advice by investment adviser Hewitt.

ABP's pension scheme has 1,854 active members, 1,174 deferred members and 4,270 pensioners.