Dáil Éireann debate -
Thursday, 25 Mar 1999

Vol. 502 No. 5

Written Answers. - Port Development.

Willie Penrose

Question:

10 Mr. Penrose asked the Minister for the Marine and Natural Resources the developments, if any, he is undertaking to expand and modernise Irish ports in view of the significant increase in the level of trade through the ports in recent months; and if he will make a statement on the matter. [8559/99]

Seán Ryan

Question:

38 Mr. S. Ryan asked the Minister for the Marine and Natural Resources the steps, if any, taken or envisaged by his Department to fulfil the commitment made in An Action Programme for the Millennium to develop a strategic policy for commercial harbours; and if he will make a statement on the matter. [8558/99]

Minister for the Marine and Natural Resources (Dr. Woods)

I propose to take Questions Nos. 10 and 38 together.

In relation to the ports sector, the key policy objective is to support and facilitate the availability of efficient and competitive port services. In the context of the implementation of the Harbours Act, 1996, this policy objective has been given tangible expression through the transformation of the State commercial seaports. Nine of the key commercial State seaports which handle over 93 per cent of national seaborne trade have been corporatised as fully fledged commercial State companies and these are Cork, Drogheda, Dublin, Dún Laoghaire, Foynes, Galway, New Ross, Shannon Estuary and Waterford.

The port companies are statutorily responsible under the Harbours Act, 1996, for the management, control, direction and development of the harbours as commercial operations. Freeing up the ports from direct State control gave them the commercial freedom needed to operate as a modern, customer oriented service industry, while enhancing accountability for operation and financial performance. There has been significant development in maritime infrastructural works at the commercial seaports with the assistance of EU funding. Co-financing of infrastructural development at the ports comes through my Department, from the EU via the Operational Programme for Transport 1994-1999, the Ireland-Wales Maritime INTERREG Community Initiative and the Cohesion Fund. On completion of the current programme of modernisation and infrastructural development at our key seaports some £163 million, will have been invested in new and upgraded infrastructure and access improvements.

In general, investment has been directed towards reducing the economic disadvantages of Ireland's peripherality, through improving port facilities and increasing port efficiency. The aim of reducing port-shipping costs by at least 15 per cent in real terms over the duration of the programme, thereby enhancing the country's ability to compete in the EU internal market, had been achieved by 1998.

I am aware how vital ports are to the economy and to keeping trade moving efficiently and on time. The returns from the top 20 ports for 1998 show that seaborne trade is at an all-time high. Ports throughput in 1998 was buoyant with notably increased traffic. Cargo levels recorded at the 20 key commercial seaports increased by 9.2 per cent from 41 million tonnes in 1997 to a record level of 45.5 million tonnes. Some 4.7 million passengers passed through the four ro-ro passenger ports in 1998 – Dublin, Dún Laoghaire, Rosslare and Ringaskiddy, compared to 4.4 million in 1997 – up by almost 6 per cent.

In order to determine the needs of the ports industry, my Department commissioned independent consultants last year to complete a detailed study on future seaport capacity requirements. As part of the EU national seaport capacity study a comprehensive physical inventory of existing seaport capacity was completed. The expert consultants have determined both the future demand for seaport traffic handling capacity by mode and the consequent infrastructural and organisational improvements which will be required to cater for future traffic. Total projected levels for the year 2007 were estimated at 60.7 million tonnes with 77 per cent of the total projected to move through the three largest ports, Dublin, Cork and Shannon Estuary ports.

The study also found that the capacity total for Ireland's 20 main ports will increase from 88.9 million tonnes in 1997 to 101.7 million tonnes in 2007. In a projection of surplus and shortfalls of capacity by 2007 some 8.7 million tonnes at various ports, notably at Dublin, Cork and Rosslare was identified. The study is a significant tool in ensuring the development and maintenance of adequate infrastructural capacity at strategic Irish ports to cope with economic growth and to underpin future development plans to deliver that capacity at locations as required. The study points clearly to the need for a further national port development programme which is currently being considered in the context of the National Development Plan, 2000 to 2006. The findings of the National Seaport Capacity study have been communicated on an individual basis to all of the 20 commercial seaports which were the subject of the review. This will facilitate the ports in question, whether in the State or private sector, in determining their future development plans and investment needs to meet the future demands of their customers.

In relation to policy development on State regional ports, my Department commissioned independent consultants in October last to undertake a major independent review of the State's regional ports and harbours. The study covers 16 State ports and harbours with a commercial traffic of less than 250,000 tonnes.

The Government's An Action Programme for the Millennium identifies as a key priority transferring small harbours to local control to develop marine leisure activities in the context of securing and enhancing the livelihoods of the coastal communities who depend on the sea for their future. The intention is to develop a general strategic development framework for these ports and har bours, having regard to their differing conditions and potential.

All the State regional ports and harbours covered by the study currently operate under the Harbours Act, 1946, and range from those with busy commercial traffic to others catering for a mix of uses including seafishing and marine leisure as well as some which have experienced a severe decline in terms of commercial and seaborne trade. Our objective is to chart the way forward for these ports and set out a long-term coherent and sustainable development plan for their future and for the people whose livelihoods they support as well as identifying the best development options, including local authority control in terms of ownership, financing and activities-operations. The review will be completed in 1999 and its findings published.