RNS Number:6491M
Associated British Ports Hldgs PLC
24 June 2003


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BEFORE 7.00 A.M. ON TUESDAY, 24 JUNE 2003



                     ASSOCIATED BRITISH PORTS HOLDINGS PLC
                TRADING UPDATE - SIX MONTHS ENDING 30 JUNE 2003

In keeping with its usual practice, Associated British Ports Holdings PLC is
today issuing its trading statement for the six months ending 30 June 2003,
prior to the group's interim results announcement, scheduled for 3 September
2003.


HIGHLIGHTS

The key highlights are as follows:

*  Underlying pre-tax profit for the six months ending 30 June 2003 is
   expected to be in line with current market expectations.

*  Turnover from the core UK ports and transport activities for the six
   months ending 30 June 2003 is expected to increase by at least 5 per cent
   compared to the corresponding period of the previous year.

*  Underlying operating profit from the UK ports and transport activities
   for the six months ending 30 June 2003 is expected to grow by at least 3 per
   cent compared to the first half of 2002, supported by new contracts that have
   been secured over the past three years.

*  As anticipated, turnover and underlying operating profit from property
   development activities during the first half of 2003 are expected to be 
   modest because of the phasing of property sales.

*  New contracts which have been secured over the past three years will
   underpin growth for the group's UK ports business during the full year 2003.


PORTS AND TRANSPORT - UK

Business at the UK ports has continued to make progress and growth has been
experienced in roll-on/roll-off trade, deep-sea container traffic, vehicle
imports and exports, agribulk volumes, forest products and cruise-ship calls.
Turnover from the group's UK ports and transport operations is expected to show
an increase of at least 5 per cent in the six months to 30 June 2003.  Along
with other transport companies, the group has continued to experience increased
insurance costs, albeit at a lower rate than 2002.  This, coupled with the
increased growth achieved by the group's lower margin value-added services
operations, is expected to have an impact on overall operating margins within
the UK ports and transport business.  With the exception of these items,
operating margins within the core UK ports business are expected to be similar
to the first six months of 2002.  These factors are anticipated to lead to an
increase of at least 3 per cent in underlying operating profit from the UK ports
and transport activities compared to the first half of 2002.

During the first six months of 2003, and against the background of an uncertain
market, the UK ports business has continued to develop, adding new
revenue-related investments totalling more than #12.0 million.  These include:-

*  an agreement with Brittany Ferries to invest #4.3 million, under a
   15-year agreement, to enhance the ferry terminal facilities at the Port of
   Plymouth;

*  a #2.0 million investment in the Port of Grimsby & Immingham, backed by a
   10-year agreement with Sea-Cargo AS, which will create additional space for
   expansion and development, including the continued growth of Volkswagen Group
   business;

*  investments totalling #1.7 million in steel import, storage and distribution 
   facilities at the Port of Cardiff under a five-year agreement with
   Duferco Ltd and a 10-year agreement in principle with Marshall Maritime
   Services; and

*  investments at the Ports of Immingham and Barry, totalling #1.5 million,
   associated with the forest products industry involving five- and 10-year
   agreements.

These developments, together with other contracts that are currently being
negotiated, are in line with the group's strategy to grow existing business and
develop new business through rigorously-targeted investment.  These projects
have construction lead times of up to 12 months and will contribute to the
group's results once they become operational.

The public inquiry into the application to develop the Dibden Terminal deep-sea
container port at Southampton finished on schedule last December and the
government's decision is still expected either late this year or in 2004.

The cost-reduction programme announced in 2002 is now almost complete and will
result in cost savings of at least #1.5 million during the second half of 2003
and at least #3.0 million per annum from 2004.


PORTS AND TRANSPORT - USA

AMPORTS' continuing Seaport division has shown further improvement, experiencing
vehicle-volume growth of just over 3 per cent in the first five months of this
year, primarily as a result of new accounts which came on-stream last year.
Following the weakening of the US dollar against the pound sterling, turnover
from AMPORTS' continuing ports and transport operations (which exclude property
investment income) is expected to be similar to last year.  However, operating
profit, which has benefited from reduced overhead costs following last year's
sale of the Aviation division, is expected to show an improvement of at least 30
per cent compared to the first six months of 2002.


ASSOCIATES

Southampton Container Terminals and Tilbury Container Services have continued to
experience increased container throughput this year.  The Cardiff Bay
Partnership has had a stable start to the year.  Accordingly, in overall terms,
associates are expected to produce an operating profit which will be slightly
ahead of the first six months of last year.


PROPERTY INVESTMENT AND DEVELOPMENT

The group's policy of selling non-operational port-located property and
exploiting the potential of the property portfolio continues.  As previously
reported, the level of sales made last year and during the course of this year
will result in total operating profit from UK and USA property investment
rentals being lower than last year.

The exact timing of property sales is always difficult to predict and, while the
group currently expects a meaningful contribution from property development for
the full year, in the first six months of 2003 turnover and operating profit
from this business segment are expected to be modest because of the phasing of
sales.


NEW ACCOUNTING STANDARDS

Financial Reporting Standard (FRS) 17 - Retirement Benefits was adopted under
its transitional arrangements during 2001 and the group will continue to report
on this basis during 2003.  Under FRS 17, at the end of last year, the group's
main defined benefit scheme had a surplus of assets over liabilities of #33.8
million.  This scheme remains in surplus today.


PROSPECTS

While the general economic climate remains uncertain, the group's UK ports
business has the advantage of having many long-term contracts with quality
customers.  This, together with the group's strong cash flow and diverse spread
of geographical and cargo risk, leads the group to believe that the new
contracts which have been secured over the past three years will underpin growth
for the group's UK ports business in 2003.


Enquiries:

Associated British Ports Holdings PLC
Bo Lerenius, Group Chief Executive                    tel:  +44 (0)20 7430 1177
Richard Adam, Group Finance Director
Margie Collins, Corporate Communications Manager

Finsbury
James Murgatroyd/James Leviton/Simon Henson           tel:  +44 (0)20 7251 3801


24 June 2003



Notes to Editors:

Associated British Ports Holdings PLC is a leading provider to shippers and
cargo owners of innovative and high quality port facilities and services.

The group's principal subsidiary, Associated British Ports (ABP), is the UK's
largest and leading ports group, handling almost a quarter of the country's
seaborne trade.

The group owns and operates AMPORTS in the USA, which handles car imports and
exports and provides auto-processing services.

The group's property investment and property development activities are focused
on opportunities within its ports.

The group employs almost 3,000 people, mainly at port locations in the UK and
USA.

This, and other news releases relating to the group, can be found on the group's
website: www.abports.co.uk


Photographs:

Print resolution images of Bo Lerenius, Associated British Ports Holdings PLC's
Group Chief Executive, operational management and general port scenes to
accompany this press release, can be viewed and downloaded, free of charge, from
www.vismedia.co.uk.



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