Brisk business looks set to see profits at ports operator Associated British Ports, owners and operators of Southampton Docks, rise slightly ahead of market expectations this year.

The group, which owns 21 ports as well as an imports and exports operation in the US, said its overall turnover for 2002 will increase by at least five per cent.

In a trading statement ahead of preliminary results due in February, ABP added that underlying operating profits for it's UK ports and transport activities should grow by three per cent.

The group said as a result it was on course to slightly exceed pre-tax profits targets for 2002, which analysts had set at about £134m.

The group, which employs more than 3,000 people in Britain and America and handles almost a quarter of the UK's sea-borne trade, said it expected to see further progress next year.

A spokesman for ABP said: "Business at the UK ports has continued to make progress and growth has been experienced in roll-on/roll-off trade, containers, vehicle imports and exports, agribulk volumes and cruise-ship calls. Imports of forest products and steel have also increased.

"Turnover from the group's UK ports and transport operations is expected to show an increase of at least five per cent in the year to December 31, 2002.

"Along with other transport companies, the group has experienced increased insurance costs following the terrorist attacks in the USA on September 11, 2001.

"This will have an impact on operating margins within the UK ports business.

"These factors are anticipated to lead to an increase of some 3 per cent in underlying operating profit from the UK ports and transport activities.''

ABP went on to say the UK ports business has continued to develop throughout the second half of the year, adding new revenue-related investments totalling more than £11m.

"These developments are in line with the group's strategy to grow existing business and develop new business through rigorously-targeted investment,'' the ABP spokesman added.

"These projects have construction lead times of up to 18 months and will contribute to the group's results once they become operational.''