I thank the Chairman and members of the Joint Committee on Transport and Communications for inviting me to meet them today. I begin, as I have been asked to do, by introducing myself and setting out my professional background. I am a management consultant by profession and an experienced company director. I have worked in both the public and the private sectors in Ireland and internationally. Having started my career in the public sector, I worked with the State training agency AnCO before taking a position with Synectics Inc., an international innovation consultancy based in Boston. In this role, I worked with clients throughout the world and in Ireland developing long-term strategies, facilitating the invention of new products and services and transforming organisational cultures to be more creative and collaborative.
Since 1992 I have been self-employed, running my own management consultancy company, Latitude. Working in sectors ranging from IT to food, fast-moving consumer goods, financial services, Government and State organisations and the arts, I have continued to help clients change to a more creative and innovative culture and continued to facilitate strategic planning and the development of new products and services. On foot of that experience, I found myself broadening what I do to include complex and varied assignments. Examples include acting as the bridge between the Irish Episcopal Conference and survivors of abuse; serving as chair of the Grow Dublin task force, on which all of those with a stake in Dublin's success as a tourist destination collaborated in an unprecedented way to set the course for major tourism growth in the Dublin region; undertaking a review of Temple Bar Cultural Trust with recommendations as to its future for Dublin City Council, and facilitating the transition task force on the establishment of the Child and Family Agency.
I have served on a number of boards of directors, including the board of the Project Arts Centre in the 1980s and Dublin Port Company, DPC, from 1997 to 2002. Since 2009, I have served on the board of DPC as chair based on my appointment by the former Minister for Transport, Noel Dempsey. I represent DPC on the board of the Dublin Docklands Development Authority. I also serve on the board of the National College of Art and Design. I am very pleased that the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, has proposed my appointment as chairperson of DPC for a second term and that the joint committee is considering that appointment today. It is a privilege and a significant responsibility to be the non-executive chairperson of this essential national infrastructural asset.
Dublin Port plays a vital part in the nation's economic well-being and is a major resource for the city, region and country. Dublin Port has in many senses shaped the development of Dublin as a maritime city and remains an important part of the fabric of the city today. Dublin Port's contribution to the national economy is significant. It is the largest commercial port in the State. In 2013, with throughput of 28.8 million tonnes, it handled 43% of total port throughput in the Republic, 80% of roll-on/roll-off traffic and 71% of load-on/load-off traffic. The company provides the infrastructure required by a range of private sector shipping lines, terminal operators and cargo handlers to meet market demand for efficient and cost-effective import and export of goods. This is in the service of economic well-being, jobs and quality of life.
The throughput of trade at the port is a bellwether for the broader economy. The pattern is that for every 1% change in GDP, port volumes change by 1.4%.
We have watched the economy improve since April 2013 and following 3% growth in throughput in 2013, this year sees further growth of 7% in throughput. Therefore, 2014 will be close to our best year, 2007, when throughput was 30.9 million tonnes.
The port is located at the heart of the Dublin region and at the core of a national road and rail hub, pointing to its regional and national significance. Some of the built infrastructure that Dublin Port is currently using was developed during the 19th century and is at the end of its operational life. It needs to be renewed and in some cases replaced. Dublin Port also has to take account of trends in mercantile and passenger transport, specifically developments in shipping which require increased channel depths and longer and deeper berths. Against this background, Dublin Port Company currently has a major strategic infrastructure project before An Bord Pleanála for the redevelopment of Alexandra Basin, the ABR project. We await the outcome of the ABR planning application and hope that we will soon be able to begin this €200 million project that will generate 375 construction jobs and support 320 additional jobs per year after that.
One of the key factors in getting to this stage is the constructive working relationships that we have with Dublin City Council, Dublin Docklands Development Authority, the National Roads Authority, the National Parks and Wildlife Service, the Sustainable Energy Authority of Ireland and other key statutory agencies.
When I was appointed chairperson of Dublin Port Company by the former Minister, Noel Dempsey, in 2009, I had a number of clear objectives I was keen for the company to achieve. In particular, I believed that Dublin Port Company needed to develop a longer-term vision of the operations of the port to guide its future plans. I also felt that the port needed to build and retain strong relationships with all the key stakeholders relevant to the port’s operations. These two priorities came together in the development of Dublin Port’s 30-year masterplan, which is grounded in extensive research, consultation and community engagement. Being associated with the development of a 30-year plan was most satisfying. The masterplan has given the board a really good framework on which to base its decisions on the current operations and future direction of the port so that we can continue to meet our customers’ requirements and plan for the future needs of the economy in a timely fashion.
I was also keen that Dublin Port should re-establish its close relationship with Dublin city. In years gone by, right up to the early 20th century, Dubliners were in no doubt that their city was a port city. Passengers departed from ferries on the quays and goods were loaded from the river quays. However, as part of a trend common to all river ports, port activity moved from the centre seaward and a run-down docklands acted as an unwelcome buffer between the port and the city. This pushed the port itself out of people’s consciousness.
Now that the docklands have been largely re-developed, Dublin Port Company is committed to achieving closer integration with the city and to allowing Dubliners to engage in a positive way with the life of the port. We are working hard to put life back on the river. The annual Riverfest at the June bank holiday weekend is one of a series of initiatives geared to this. We have a very active corporate social responsibility, CSR, programme that focuses on education, sport and community events in the local dock communities, and as part of the major redevelopment works, we will open up greater access to the port to Dubliners. The planned turning circle for ships, including the world’s largest cruise ships, close to the East Link Bridge will make the spectacle of ship movements visible to all.
We have committed to making sure that the economic activity of the port makes the least demands possible on the natural environment. Our first sustainability report, copies of which I have brought with me today, outlines a 95% reduction in water consumption in the 260 ha site by the systematic elimination of leakages, an increase in the waste recycling rate from 40% in 2009 to 96% in 2013 and the ongoing carbon reduction programme supported by a new wind turbine. In order to understand better the habitat of birds in the port area, we are co-operating with BirdWatch Ireland on the Dublin Bay birds project. The project brings to life for us the fact that the port area belongs to birds and marine life as well as to humans.
DPC is a strong business. I have provided a link to the latest annual report for members of the committee, which details the performance for the last financial year. The company is in public ownership and facilitates the competing operations of private companies active in the port. This has proven to be a very strong business model that works in the interests of the State and of port users. On a turnover of €68.4 million in 2013, we had profit after tax of €26 million. Consistent profit has enabled the company to pay a significant dividend to the shareholder, amounting to a total €69.8 million over the past eight years.
The company is debt free, putting it on a very sound footing as we embark on a significant period of capital expenditure, underpinned by the Alexandra Basin redevelopment, ABR, project. In this regard, the company is in the midst of positive discussions with the European Investment Bank with a view to borrowing €100 million of long-term project debt for the ABR project. This is a prudent approach to debt financing, matching long-term assets with long-term financing. Recently, the company received financial support from the EU under the TEN-T programme amounting to €2.5 million in respect of studies to bring the ABR project through planning to the point where we can tender for the required construction works. We will be following this up with a further application for grant funding in respect of the construction works for ABR under the newly-launched Connecting Europe facility.
The company's board is well constituted. Early in my time as chair, I advocated to the then Minister, Deputy Leo Varadkar, a competency matrix to inform board appointments in order to ensure that the board would contain the blend of skills necessary to serve our needs. This has served us well, as each appointment made by him and by the current Minister, Deputy Paschal Donohoe, has strengthened our collective capability across the areas of finance, marine operations, commercial law, planning and compliance. The board's performance was independently evaluated at my suggestion during the year and was judged to be an effective board. There is a high level of trust between the CEO and the other members of the board and between the board and the other members of the executive team. The company is fortunate to have a very loyal and dedicated staff who serve Dublin Port Company and our customers very well.
I would be pleased and honoured to serve a further term as chairperson of Dublin Port Company. I am happy to answer any questions the committee may have and to elaborate on any aspects of my submission.
