JOINT COMMITTEE ON THE ENVIRONMENT, TRANSPORT, CULTURE AND THE GAELTACHT debate -
Thursday, 15 Dec 2011

Role and Functions: Discussion with Drogheda Port Company

Chairman

The first item is an introduction to the chairman designate of Drogheda Port Company, Mr. Denis Moynihan, whom I welcome. I thank him for his attendance and draw his attention to a number of matters. By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the joint committee. If they are directed by the committee to cease giving evidence on a particular matter and continue to do so, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and are asked to respect the parliamentary practice to the effect that, where possible, they do not criticise or make charges against a person, persons or an entity by name or in such a way as to make him, her or it identifiable. Members are reminded of the long-standing parliamentary practice to the effect that they do not comment on, criticise or make charges against a person outside the Houses or an official by name or in such a way as to make him or her identifiable.

I ask Mr. Moynihan to make his opening address.

Mr. Denis Moynihan

I thank the members of the joint committee for inviting me to introduce myself to it and give my thoughts as chairman of Drogheda Port Company. I am a management accountant with a diploma from Durham University. I have spent all my working life as an accountant in industry in various capacities up to and including board level. I have had a business consultancy practice for the past 12 years. During this time I have worked in many sectors of industry including food processing, logistics, IT, engineering and injection moulding. I deal with many indigenous Irish companies and in the course of this I come up against transport costs which can be significant and sometimes a barrier to companies trying to export.

Shipping is an important matter for exporting companies, not alone with regard to cost but also with regard to speed and efficiency. There is no doubt that a good port system is very important to facilitate indigenous companies which export and plan to export. Drogheda will play a pivotal role in this in the coming years and the development of Bremore will be of significant importance. Port capacity is recognised by everyone as being fundamental to our plans to export and to our competitiveness. As an island nation it is even more important. Therefore, the supply of the right type of port facilities is essential. The key aspects of this are deep water access and access to our road infrastructure. Larger vessels are becoming more popular and we must cater for these. It is very important that we can handle these larger vessels.

Generally, our port infrastructure throughout the country is not all that we would desire. In a report on global competitiveness completed this year we were ranked 29th out of 139 countries while our port infrastructure was ranked only 45th. We are all aware a ports policy review is under way and will be published next year.

The outlook for the port sector will be quite demanding and Drogheda is well positioned to compete for the years ahead. I look forward to my time as chairman of Drogheda Port and I hope the experience I have in many sectors of industry in dealing with export companies will help to drive Drogheda Port and, I hope, Braemore Port.

Deputy Gerald Nash

I thank Mr. Moynihan for his presentation. I look forward to working with him on the existing Drogheda Port infrastructure and, I hope, the development of the Bremore Port project. I share his views that Drogheda Port is well positioned to continue to contribute to economic development in the north east and nationally. As Mr. Moynihan is aware, Drogheda has a very long and proud port history. More importantly, it has a significant role to play in future port development and economic activity, not only in the region but throughout the country, particularly in the context of the proposed Braemore Port project. This, as I think Mr. Moynihan will agree, will be a major infrastructural and planning challenge. It will also be a major business challenge for the company to expedite in the coming years, particularly in the context of the economic challenge we have at present. I would like to see the development proceed, as would many in the locality and region. Where does Mr. Moynihan see the major planning challenges and the major obstacles to development? There are also environmental challenges to be overcome and to be addressed in a sensitive way in proceeding with the project, and business challenges with regard to delivering the project.

Mr. Moynihan correctly pointed out that deep water ports are important for the future of the Irish port infrastructure. At present we are underserved in this respect and Braemore would be well positioned through the Drogheda Port Company to capture this market and drive our economic development. I would appreciate it if Mr. Moynihan enlightened me on how he will address these challenges and what he will bring to the organisation to help it meet the business challenges to expedite the Braemore project.

Mr. Denis Moynihan

As the Deputy stated, planning issues must be overcome and I believe a submission has been made to Meath and Fingal County Councils. I am not yet privy to what has been going on but I understand they will create a fairly major hurdle. If this hurdle is overcome the other issue to be faced is one of finance. A public private partnership was being negotiated and I understand it is pending.

From a strategic point of view, Bremore is ideally situated and the fact that it is deep water is of paramount importance. It is also close to a very good road network as it is one and a half miles from the M1 which places it half an hour from the centre of Dublin, an hour and a half from Belfast, and two and a half hours from Limerick if it comes to that. It has much in its favour but the planning, environmental and financial issues will be important. I understand the land acquisition has been negotiated, or let us put it that it is not insurmountable.

Deputy Dessie Ellis

I thank Mr. Moynihan for his presentation and I cannot argue with his credentials. I would like to ask about a number of areas. I would like to know whether Mr. Moynihan has any special plans to improve competitiveness. We have heard presentations about the port previously and we know its capacity is limited in many ways. Is it planned to examine leisure and other uses apart from heavy cargo? How many people work there? What are the spin-off effects? Will Mr. Moynihan gives us a flavour of how it affects the entire area? Is the money being spent within the Government's pay guidelines?

Mr. Denis Moynihan

Currently, there are 13 employees. Did the Deputy mean existing or potential employment?

Deputy Dessie Ellis

Both, to give us some idea of what could occur.

Mr. Denis Moynihan

I am not privy to how it is abiding by Government guidelines on pay and remuneration. I just have sight of its audited accounts and do not have the details as yet. Were the Braemore project to go ahead with its port and ancillary facilities, it would be a significant employer of 200 permanent staff and as many as 1,000 workers during the construction phase. An ordinary residential building site would employ 400 workers at construction phase.

The Deputy referred to leisure and tourism activities.

Deputy Dessie Ellis

I was trying to determine whether those activities, including cruises, yachting, etc., form part of the Drogheda Port Company's remit.

Mr. Denis Moynihan

Not that I am aware of. As a matter of interest, a press release this week announced that a cruise ship carrying 200 passengers from the US or some such place would be visiting Drogheda Port next year. Perhaps it is the beginning of a new initiative.

Deputy Dessie Ellis

A part of the plan was to transfer authority for some of Dublin Port to Drogheda. Is this viable and would it help Drogheda Port? It is a bone of contention in Dublin, in that it will move jobs to Drogheda.

Mr. Denis Moynihan

My understanding is that port capacity will increase dramatically in the next 20 years. To this end, Dublin Port will need to double in size and capacity. A great deal of business is coming down the road. Whether it is Dublin, Bremore or both, we will need to cater for a significant increase in shipping requirements. There is room for both.

Chairman

I wish to discuss Mr. Moynihan's vision for the port authority. In my area of Cork Harbour, the Port of Cork must make a major decision about moving upstream or downstream. Shipping traffic into the harbour is becoming more freight container than roll-on roll-off, ro-ro. As a fellow Corkman, Mr. Moynihan knows the geography as well as I do. Where one is located determines how one sees the world.

Geographically speaking, Drogheda is in a tight squeeze between the population centres of Dublin and Belfast. The eastern seaboard is also home to Rosslare. Virtually the whole of Ireland is competing with Drogheda Port. With what niche will the port identify itself?

Mr. Denis Moynihan

The deep water port of Bremore would be able to cater for large vessels whereas Drogheda, Warrenpoint, Greenore and Larne cannot. It is in a good location and has much going for it.

Chairman

Will Drogheda Port inhabit a niche in the market? Mr. Moynihan has indicated that the deep water berthing of freight containers is a potential area of growth.

Mr. Denis Moynihan

Yes. It will be able to cater for container and ro-ro whereas the current port can only cater for container and bulk shipping.

Deputy Gerald Nash

I am pleased that a Corkman will be at the helm, if he will excuse the pun, of Drogheda Port Company. I am always confident that a Cork person will handle business effectively.

Mr. Moynihan is aware of a key marketing point for the area in general, not just Drogheda Port, in that it is at the centre of the largest population region in the entire country, with 1.7 million people within one hour of it. This cannot be said of Belfast, Cork or Dublin. It probably has some of the best infrastructural features in the country. I am pleased that Mr. Moynihan mentioned that cruise liners have expressed an interest in sailing up the River Boyne and docking at Drogheda Port shortly. There is a renewed emphasis on tourism development across the country, for example, the "Local Heroes: A Town Fights Back" series recently broadcasted by RTE. There has been a 9% increase in tourism across the country, including a significant increase in the Drogheda area, which has been marketed as Drogheda on the Boyne and the gateway to the Boyne valley. We are well positioned to take advantage of our historical and cultural assets, which are some of the finest in the country.

If the Bremore project proceeds, the possible degradation of the inner quays area is a concern. In recent decades, many towns turned their backs on the rivers. Drogheda and other towns and cities have taken a different approach in recent years, in that we are using rivers as assets again. The port companies are key stakeholders in this regard. In the event of Drogheda Port moving its operation to Bremore, which I hope it will, various groups have suggested to me that the inner quays area should be developed so that we might celebrate our maritime heritage and use the river for leisure pursuits. There is a great deal of potential. Those who are involved in sailing and yachting are at the higher end of the market and can contribute much to local economic growth. Could such plans be key drivers for Drogheda Port?

Mr. Denis Moynihan

My understanding is that, if Bremore is developed, it will not be the end of Drogheda Port. Rather, Drogheda will continue to operate in a niche market. As regards tourism-----

Deputy Gerald Nash

I am asking about the inner quays area, which has not been used actively since operations moved out to Tom Roe's Point on Baltray Road.

Mr. Denis Moynihan

It is undoubtedly a difficulty. I asked what would happen to the company's land and property on the edge of the town if operations moved. This would not have been a problem five years ago, as the property could easily have been used for development. Other uses and activities will need to be found.

Last year, I did some work on developing Drogheda as a tourism destination. As a Cork man, I was shocked because Drogheda has more to offer in terms of tourism than has any other town or city in the country. It has everything, including the Battle of the Boyne site, Newgrange and high crosses. I could go on, the list is endless. Drogheda is under-developed and lacking in some respects. The Boyne is a lovely river, which could be capitalised if we had the tourists. It is possible to cycle or walk along it on a footpath which stretches from the Drogheda Port to near Slane. Drogheda has all of these attractions and facilities but they are not being utilised. There is great potential there. Perhaps the docking of the cruise ship in Drogheda Port next year will be the start of something. The "Local Heroes" campaign might also spur people into action.

Chairman

That concludes our consideration of this issue. The joint committee has its own website and would like to post Mr. Moynihan's presentation and formal document on it. Do we have your permission to do so?

Mr. Denis Moynihan

Yes.

Chairman

Is it agreed that the joint committee will inform the Minister for Transport, Tourism and Sport, Deputy Varadkar, that we have concluded our discussion with Mr. Moynihan and will forward a copy of the transcript of this meeting to him for information? Agreed. I thank Mr. Moynihan for attending.

The joint committee went into private session at 10.02 a.m. and resumed in public session at 10.15 a.m.