JOINT COMMITTEE ON TRANSPORT debate -
Wednesday, 1 Jul 2009

Wicklow Port: Discussion with Wicklow Port Company.

Vice Chairman (Deputy Paul Connaughton)

The next item on the agenda is a discussion with Wicklow Port Company. I draw attention to the fact that while members of the joint committee have absolute privilege, the same privilege does not apply to witnesses appearing before the committee. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable.

I welcome from Wicklow Port Company Captain John Barlow and Mr. Brendan Newsome, chairman and director of the audit committee. I propose we hear a short presentation which will be followed by a question and answer session. I also propose that the meeting be kept short because the select committee met earlier for five hours. We are extremely interested to hear about the future plans of the company.

Mr. John Barlow

I thank the Vice Chairman and members for giving us the opportunity to make a presentation to the joint committee. I am the harbour master and chief executive of Wicklow Port Company and I am joined by my colleague, Mr. Brendan Newsome, who is a director and chairman of the port audit committee.

Since corporatisation in May 2002 to the end of 2006 ship numbers at Wicklow Port had increased by 38% and cargo volume by 73%. There was a steady yearly increase. However, the global recession and the steady but massive reduction in the building trade have led to a rapid fall-off in our prime import product — timber. The number of ships and volume of cargo have reduced dramatically. Even the volume on board each ship arriving at the port is a pittance compared with the 2005 and 2006 figures. At this time, however, there is a hint that timber figures may increase slightly which, I hope, signals a levelling off in the trade. The port is continually pursuing new trade with different cargo commodities.

As the port is located in the middle of the town, we must be conscious of the local environment and the goodwill of the local population in regard to swimming at the beach, yachting, the use of pleasure boats, the use of commercial and pleasure boats by fishermen and the lifeboats of the Royal National Lifeboat Institution. The non-commercial activities at the port are a boon to the town's inhabitants and tourists. The view from the higher car parks in both the inner and outer harbours is a sight to behold. The activities engaged in on the pebble beach within the confines of the harbour are numerous. They include the use of skates, sea angling boats, jet skis, scuba diving and craft coming and going. The skiff and sea angling clubs host all-Ireland competitions annually. The port has reconstructed a slipway on the beach to facilitate these clubs.

At regular times during the year the Irish Coast Guard water safety training utilises the harbour to train personnel from as far afield as the south west and the west coast in co-ordination with the two local lifeboats.

In summer time the harbour beach is thronged with swimmers of all ages. The majority of the children from the town and rural area have learned to swim on this beach as there was never an indoor swimming until recently.

Since corporatisation there has been no development of port infrastructure. It is planned to reconstruct sections of the south quay wall. This is a joint venture with Wicklow Urban Council as it requires to renew the adjacent roadway. Tenders are out and it is expected to start this work in September or October this year. Doran Consultants of Belfast were retained by the urban council for this work and to date we have shared its consultancy fees.

The port has met with the urban council regularly, especially to discuss our share of the financing of this work. With the global recession the urban council is strapped for the major portion of this funding. The building of the new port access road — the town relief road, if one wants to call it that — has progressed quickly and it is expected to be opened in October this year. This will be a fantastic asset to the port, especially when trade improves once more.

There has been no acquisition or sale of land since corporatisation. Further development of the port will depend on funding. Our two piers, west and east, are in a serious state of decay underneath the waterline and are in urgent need of remedial work. A diving survey was undertaken by Doran Consultants, which has indicated the seriousness of these conditions in its survey reports.

In the annual accounts the funding costs for the repairs to the piers were included for record purposes only. The port itself would not be able to fund such pier repairs. While a bank has outlined the likely cost associated with a €3 million loan, it is unlikely that either the bank or the Department would approve such a loan.

In the future there could be incorporated into the east pier repair a marina and leisure centre. The seaward side of the east pier would require rock armour in this repair. However, this rock armour could be put to better use as another outside breakwater, which would both protect the east pier and allow an outer base for yachts and leisure craft with ample depth of water. This could be a joint venture with interested parties.

There are ten to 12 whelk fishing boats using the port to land their catch for processing in Kilmore Quay and Donegal. These boats usually employ three men each.

The Wicklow people are very proud of their harbour, and especially proud of the biannual Round Ireland Yacht Race and the East Coast Sailing Regatta. The Annual Wicklow Regatta is centred around the harbour, beach and piers where every on-sea activity is undertaken with a carnival, festival emphasis.

The port is open for accommodating operational craft in the event of the development of the Codling Bank and Arklow Bank. The total number employed in Wicklow Port Company is three persons, that is, myself as harbourmaster and CEO, one part-time office secretary and one general operative.

Mr. Brendan Newsome

I have little to add to the comprehensive summary Captain Barlow put before the committee, bearing in mind the length of time of this sitting. In summary, in Wicklow Port there is a good scene and a bad scene. The good scene is the current position on access to roads, especially to the N11. This access has improved dramatically and will in the next couple of months involve the opening of the new port access road, which will give direct connection from the Port of Wicklow to anywhere in the country through the excellent roads infrastructure, particularly the N11 to the M50.

A second positive aspect in Wicklow Port are the low overheads and labour costs, and costs generally. The port does not carry overheads such as stevedores, haulage, fork-lifts or cranes on a permanent basis because it has access to private stevedores in Wicklow, especially the stevedoring company, R. F. Conway and Company Limited, which is very helpful to the port. Those are very positive aspects of the Port of Wicklow for the future.

On the negative side, as Captain Barlow explained, there are considerable repairs to be carried out to the south quay, and potentially serious repairs to both piers, the east pier and the north pier, which will need financing. I am afraid those are the main negative aspects.

We are not too sure from where money may be found. The repairs to the south quay may be within the range and limits of finance of the town council and the port company, but it if comes to a number of millions of euro to be spent on the piers, the finance must be sourced from some manhole or other. Those are the positive and negative sides as I see it.

Vice Chairman

That is a fair job in today's environment.

Deputy Thomas P. Broughan

I warmly welcome the harbourmaster and chief executive, Captain Barlow, and Mr. Newsome. They supplied the committee with much documentation on the performance of the port in recent years and its place within the port structure of the country. We found that helpful in our quest to put together a report for the development of the ports over the next five or ten years. I have questions on a couple of the points raised. On infrastructure, what cost is involved in the repairs to those piers?

Mr. John Barlow

The last costing for repair of the two piers, given approximately a year ago, was €3.25 million.

Deputy Thomas P. Broughan

Would that increase the port's berth capacity or just bring it back to the way it should have been?

Mr. John Barlow

The east pier could be used perhaps as a commercial berth as well. It would all depend on the roads into it. As I stated, they are breakwaters, piers to protect the port and the town of Wicklow. My concern is that the piers are decaying underneath. We have had divers' report confirming they are in a bad way. That is my main concern.

Deputy Thomas P. Broughan

Clearly, the port would need help from here.

Mr. John Barlow

From somewhere.

Deputy Thomas P. Broughan

Clearly, there was a major fall-off in the port's income due to the recession. Timber and building materials form a large part of the port's portfolio. Has anything been done to broaden that portfolio to give the port more trade on which it could base its income?

Mr. John Barlow

We are looking at the timber trade. We have timber, plasterboard and lead. In my estimation, there seems to be a levelling out and it might be starting to take off again. We are also looking at other trades with the agent or ships' broker in the town, who is constantly looking for trade. There are a couple of developments. We will try exporting, but as yet that is in its infancy. We are hopeful of start that.

Deputy Thomas P. Broughan

The port might come up with a development plan.

Reference was made to the fishing fleet that uses the port. I note that in other ports, especially in the six national fishing ports under the Department of Agriculture, Fisheries and Food, some of my constituents' boats are charged quite high fees for using pier facilities. Why is there no income from the fishing sector, particularly as our guests are trying to provide the best possible facility?

Mr. John Barlow

Fishermen throughout Ireland are renowned people. Under the 1946 Act, the Department determined the level of our fees in the past. When we corporatised we raised the fees. Fishermen are quite good with regard to paying their fees. However, certain individuals do not want to pay them and we are obliged to pursue these individuals.

Deputy Thomas P. Broughan

Many debates took place in the House with regard to the difficulties experienced by other national fisheries ports. It is an interesting angle.

Deputy Michael Kennedy

I welcome our guests. I listened with interest to their presentation. With regard to falling incomes and competitive pricing, surely there is an opportunity for the Wicklow Port Company to market itself to attract import and export business. Wicklow is located approximately 45 minutes drive from Dublin and from Wexford and the road infrastructure that links it to both is brilliant. I would have thought there is an ideal opportunity for the company to attract business to the port. I accept that there are infrastructural issues to be addressed and that funding of €3.75 million is required in this regard. That is obviously a serious amount of money for such a small company.

In geographical terms, Wicklow is located close to Dublin and Rosslare and is well positioned to attract business from the remainder of the south-east region. With regard to imports, it is obviously cheaper than its counterparts from a cost perspective. The journey time from Wicklow to the various trading centres has been reduced as a result of new road infrastructure. Notwithstanding the downturn in the economy, does the Wicklow Port Company intend to carry out a feasibility study in respect of expanding its business? In the good times, it attracted great trade in the timber business, and so on. It must commission a report on how it might exploit its competitive advantages.

With regard to the leisure aspect and in the context of cost, might there be an opportunity for Wicklow to cash in on some of the business done by those who provide berthing facilities at Dún Laoghaire, Howth and Malahide?

Mr. Brendan Newsome

I will answer some of the Deputy's questions and Captain Barlow will reply to the remainder. We are in a unique position. I run my own business, a company which manufactures rope, in Wicklow town. When I carry out sales and marketing projects, I know with whom I am dealing, the identity of my competitors and what I can say privately or publicly. In that context, I must be aware that this meeting is being held in public.

Wicklow is in a unique position in that it has ten or 15 companies competing with each other. While I accept what the Deputy says with regard to the good position we occupy in geographical terms, we must nevertheless compete with the various other ports. If one is involved in selling and marketing in the public sector and is obliged to place information in the public domain, the first thing one is doing is handing an advantage to one's competitors. That is not the way I operate in my business. One must, therefore, bí curamach to some degree in the context of the information one places in the marketplace.

Vice Chairman

In other words, our guests have something planned but are not really prepared to reveal it.

Mr. Brendan Newsome

Absolutely. It is fair to say that in public.

Vice Chairman

That is the important point.

Mr. Brendan Newsome

Yes, we can say that without revealing any detailed information.

Vice Chairman

The committee appreciates that.

Mr. Brendan Newsome

I wish to revert to Deputy Broughan's comment regarding the east pier in Wicklow, which is the one to which we referred earlier. If there was no commercial or leisure port located in Wicklow and if only the pier protected the town, someone would be obliged to come up with funding in respect of maintenance. Such funding may have to be provided in the coming years if the pier becomes undermined. A considerable portion of Wicklow town would be under threat if the east pier were to disappear. Leaving aside the commercial aspect of the port, that matter would have to be dealt with.

Deputy Thomas P. Broughan

It is somewhat of a climate change issue.

Mr. Brendan Newsome

Yes.

Deputy Andrew Doyle

My office in Wicklow overlooks Mr. Newsome's business and I can see the port from there. On that last point, for anyone who does not understand the nature of Wicklow town, the difficulty with the east pier does not relate to climate change, with due respect. The rationale behind building it in the first instance was to protect the town, which is located on a hill. If the east pier were not in place, the south quay wall would be destroyed during the first winter storm.

Our guests identified the positive and negative aspects of this matter. The port access road is critical infrastructure for the development potential of the port. In the past, when coal and timber were imported and exported through the port, the town used to become clogged up with traffic. I accept that our guests' cannot divulge details of the plan to which they referred. However, is it not the case that everything is contingent on the two pier walls and, to a lesser extent, the south quay being reinforced?

I am aware that leisure facilities could be developed at the port. What is the position with regard to fishermen? Some of these individuals have remained in the industry for many years and I am aware that there were probably more of them operating out of Wicklow some years ago. I may be wrong, but I believe several individuals may have returned to the industry because there appear to be some extra boats operating out of the port.

If we take it that the recommendation would be that Wicklow be recognised as a key item of port infrastructure on the coast, is there anything that might be done in respect of foreshore licensing — particularly in the context of the potential for offshore energy generation — that might increase business at Wicklow port? I ask this question because I am a member of the Joint Committee on Climate Change and Energy Security, which has presented a Bill on foreshore licensing to amend the Foreshore Licensing Acts. This legislation proposes to introduce a fast-track system in respect of critical offshore infrastructure. There is major potential to develop tidal and wind energy on the east coast and ocean energy on the west coast. At present, however, all sorts of checks and balances apply and the system is not cohesive. The Bill put forward by the Joint Committee on Climate Change and Energy Security suggests that the Marine Institute might identify the various sea areas that would be most suitable for alternative energy projects.

If that to which I refer came about, Wicklow port would have a great deal to offer in the context of operating as a services bay. Arklow would also have great potential in this regard and the two ports need not necessarily compete with each other. They could operate on a complementary basis because both have different positives to offer. Our guests outlined their five-year cashflow projection. Do they also intend to put forward a five-year development plan?

Mr. John Barlow

We have many plans. If we wanted to move into the area of marine leisure activities, there are plans relating to the east pier which would lead to money being saved. If we were obliged to repair the back of the east pier — on the seaward side — we would need rock armour behind the pier. If we save money on that rock armour, we would be in a position to build another breakwater outside the pier. This would provide protection to the pier and would create a basin with ample water below the Black Castle. This could become a marina to be used for leisure craft. If that happened, we could move the yachts from the harbour to the marina. The inner harbour, as we refer to it, where the yachts are currently located, could then be used for anchoring offshore barges or tugs. We could also accommodate fishermen because they would be in a lee. Fishermen come into the inner harbour for shelter. However, realising these possibilities depends on funding.

My concern is that the east pier will be breached. If that occurred, the whole harbour would be threatened. The south quay wall and Parnell Bridge will be destroyed and the €80 million port bypass road will be rendered useless because there will be no access to the town or the area south of the bridge.

Deputy Frank Feighan

I thank the Chairman and welcome Captain Barlow and Mr. Newsome. I was in the lovely County Wicklow last Saturday when I attended a wedding at Brook Lodge. It took only two hours to travel from County Roscommon thanks to the great road network. I am also pleased to note that a new road has been constructed linking to the main motorway.

Officials in the Department of Finance should examine the accounts of Wicklow Port Company. It is an impressive set of accounts which demonstrates that it is a lean management company. Not many businesses have more than €1 million cash in hand in the bank. It is a credit to our guests that the port company is well run.

Wicklow Port Company has a business plan. If one is considering spending €300,000 to repair a wall, I agree it may be preferable to consider expending €3 million as part of a joint venture which would deliver a win-win solution for the community, businesses and the port company.

I share Deputy Broughan's view that the information provided is excellent. I was impressed when I read the documents last night. Has Wicklow Port Company drawn up a business plan in conjunction with consultants? If the company proposes to seek funding from the Department, it will require a business plan. I assume it has such a plan.

The company has also examined the possibility of engaging in joint ventures. Can our guests elaborate on their deliberations in this regard without breaking confidentiality? As our visitor from the port in north County Dublin has left, he will not find out. Responsibility for operating the Wicklow Port has been successfully entrusted to the staff of the port company. I accept, however, that times are getting tough.

Vice Chairman

Before Captain Barlow answers the Deputy's questions, I have several questions about the Harbours (Amendment) Bill, which passed Committee Stage today at a meeting of the select committee attended by the Minister which lasted for more than five hours. Will the legislation benefit Wicklow Port Company? One of options to become available when the legislation is passed will be a provision allowing ports to link up. I do not know whether this is good or bad news for Wicklow Port but I assume our guests will know whether it will be beneficial. Are there constraints other than financial constraints which would prevent progress in Wicklow Port?

Mr. Brendan Newsome

The position is akin to football. People from counties Westmeath, Kildare, Wicklow or Laois would not want to join up with Dublin to form a football team.

Deputy Thomas P. Broughan

Some people have suggested that counties Carlow and Wicklow should do precisely that to make the championship more competitive.

Deputy Frank Feighan

One could have two Dublin teams, one in the north, the other in the south.

Vice Chairman

It will not make a difference to County Roscommon.

Mr. Brendan Newsome

Deputy Feighan asked about a plan. We will start to work on a plan when a new board is in place. We await the outcome of today's deliberations to determine whether elected councillors will be on the new boards. Perhaps members can advise us of the latest position.

Vice Chairman

It appears the boards will have one local elected representative.

Mr. Brendan Newsome

We have a five-year plan.

Mr. John Barlow

We have plans. I work in tandem with the agent ship broker, of which there is only one in Wicklow. We maintain contact with each other and we understand the shipping business, for example, chartering, the cost of transport and so forth. I have been in shipping for my entire life and view these matters from the perspective of a seafarer. As I stated, I understand the costs of chartering but we must keep under wraps what we are trying to do.

Vice Chairman

I appreciate that.

Mr. John Barlow

The ship broker does not hold anything from me and I do not hold much from him. That is the way the system operates. We have to produce a new plan in light of the recession. At present, we work primarily with imports but we are also examining the potential of the export market for which there is a niche. Chartering ships will also be an issue. We must examine our costs because competition is significant, particularly from the larger ports.

Vice Chairman

What single measure could the joint committee take to assist the future development of Wicklow Port?

Mr. John Barlow

Under the current set-up, funding is relevant. Wicklow Port is old and short of capacity. If we had a little more space, we could increase our trade.

Vice Chairman

Is Captain Barlow convinced that more trade could be done?

Mr. John Barlow

Yes.

Deputy Thomas P. Broughan

On the issue of the east pier and the possibility of developing another breakwater to which some of the leisure craft could be moved to provide more space, representatives of Dundalk Port, which is of a similar size to Wicklow Port, appeared before the joint committee a couple of weeks ago. Does the Wicklow Port Company liaise with its counterparts in Dundalk and other smaller ports which have experienced setbacks?

Did Wicklow Port Company make a submission on Transport 21 or the national development plan? Will it make a submission when new plans are developed, perhaps by a new Government? Deputy Doyle noted the critical nature of the work required in Wicklow Port. How has this issue been highlighted? Will the work, once completed, have a spin-off and result in a better port?

Mr. Brendan Newsome

When the current Minister of State, Deputy Roche, was Minister for the Environment, Heritage and Local Government, we submitted a plan for the piers. I do not know what the response was. The fundamental point regarding the pier, specifically the east pier, relates to when the company was corporatised and the Wicklow Harbour Commissioners became the Wicklow Port Company. When one is handed a company one expects the assets to be as stated in the balance sheet. However, that was not the case given that the liabilities were €3 million while the asset was valued at €2 million on the balance sheet. The State handles this port but all the time we are carrying this negative asset on our balance sheet. We are going back to make a case with the Department. However, we are realistic and know there is no money available given and we are aware of the state of the economy. It is rather difficult to ask for €3 million or €4 million at this time but down the line we have to remind those who gave us the asset that it is not valued at the rate shown in the balance sheet.

I should say to Deputy Broughan that none of us, outside our particular role today, would be aware of how strong competition is between the people up the road and ourselves. One cannot lift the phone and say these are our rates or ask what one is doing with one's piers. There is strict competition. Perhaps the Department will say to these companies that they are running them on behalf of the State and that perhaps there should be a committee that liaises not only in regard to the rate charged for coal, cement or whatever. This is not happening at present because Drogheda, Dundalk and Wicklow are all in strong competition, not to mention the large port companies such as Dublin and others.

Vice Chairman

It reminds me of what the livestock marts used to be like 20 years ago.

Deputy Andrew Doyle

I realise I am not a member of the committee but may I make a suggestion? The delegates have made the point that Wicklow Port is probably as near to most of the main arteries out of Dublin as is Dublin Port in terms of time access. In October one will be able to get to the M50 and on to one of the main national primary routes from Wicklow as fast if not faster than out of Dublin Port at present. Strategically it has a critical role to play.

I hope we can attract and establish businesses in Wicklow, or relatively near to the port, which will export goods so that export trade can be developed. Taken with a business plan, as Captain Barlow said, there is potential for business and one has to net off the cost of restrengthening the east pier wall. Money will have to be found for that work, maybe not this year, or the town is in jeopardy.

If I am in order, I suggest that this committee supports an initiative to have works carried out at the east pier and that the other aspects of the development are accepted in tandem with a development plan which does not have to be published on the website. but can be put to the Department.

Vice Chairman

That will be recorded. We will bring our consultants into the equation when this series of meetings is over. I thank the delegates for appearing before the committee. They made a very sincere case. As one who is not involved in the ports business it struck me that they know what they are talking about. That is a great start and we will see where it leads to.

Deputy Frank Feighan

The county will probably get more Government support.