ALTHOUGH still stunned by the government's refusal to approve the Dibden Bay container terminal, Associated British Ports (ABP) presented buoyant half-yearly figures for Southampton Docks yesterday.

As reported earlier in the Daily Echo, interim figures for the first six months of 2004 reflected an exceptional charge of £44.9m write-off for costs related to the group's application to develop the proposed terminal on Southampton Water.

At the same time ABP, owners and operators of the city's port, reported an underlying group pre-tax profit of £65.2m, up seven per cent compared with the first six months of 2003.

The port of Southampton was again highlighted as a major contributor to the local and national economies as the docks went from strength to strength in key trades with turnover increasing by five per cent.

Bo Lerenius, ABP's group chief executive, said: "The government's decision on the Dibden Terminal will have no significant short-term impact on the group's underlying UK ports business.''

During the first six months of the year Southampton reinforced its position as the cruise capital of the UK, the country's number one car-handling port and home to Britain's second largest deep-sea container facility. The number of cruise passengers passing through the docks rose by 30 per cent compared to the same period in 2003, vehicle handling grew by five per cent and the total number of containers handled was more than 680,000 units, also a five per cent growth.

Andrew Kent, ABP's port director in the city, said: "Southampton Docks is a vital engine that powers not only the local economy, but also the UK economy as a whole, supporting many thousands of local jobs.

"The success of the port is underpinned by long-term customer contracts, continuing capital investment, and a flexible approach to meeting the needs of our customers.

"The prospects for the second half of the year are encouraging.''

The mainfinancial points in the interim results included:

UK ports and transport turnover up six per cent to £182.2m

Underlying UP ports and transport operating profit up four per cent to £70.1m

Underlying group pre-tax profit up seven per cent to £65.2m

Underlying earnings per share up seven per cent to 14.3p

Interim dividend up four per cent to 7p