Oireachtas Joint and Select Committees

Wednesday, 5 February 2014

Joint Oireachtas Committee on Transport and Communications

Competition in Ports Sector: Competition Authority

10:00 am

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael) | Oireachtas source

I thank the delegation for coming before the joint committee. From the perspective of public policy, this discussion is helpful and timely. The body of work of the Competition Authority will feed into the process of restructuring. I support the idea that the Department of Transport, Tourism and Sport would consult the Competition Authority in advance of restructuring of the port system.

I wish to make a slight correction to Mr. Aylward's contribution on the categorisation of the tiers structure of ports. He mentioned that the Port of Waterford and Rosslare Europort were regional ports. Tor the record, they are categorised as national ports. The tier 1 ports, which are responsible for 15% to 20% of overall tonnage through Irish ports, are Dublin Port, Shannon-Foynes Port and Port of Cork. The nationally significant - tier 2 - ports are Port of Waterford and Rosslare Europort. The remaining ports are tier 3 ports.

I represent the Waterford constituency. I am specifically looking at balanced regional development, something for which I have always argued. The infrastructure servicing Dublin Port, the Dublin Port tunnel and access to the motorways, is brilliant. Rosslare Europort and the Port of Waterford are the gateways to mainland Europe. All the main trunk roads and motorways are adjacent to both ports. The ports are also serviced by rail and major national infrastructure such as water and gas. I believe they have not been developed to their full potential. I am not taking the parochial view, but there is a push towards a dominant player in the sector. My fear is that if Dublin Port on the eastern seaboard continues to development at its present rate, it could almost monopolise imports and exports. I would have major concerns in that regard. That is the reason I think the Competition Authority's input is essential. The Competition Authority would have a broader view on how port infrastructure should develop. It would obviously be observing fair practice and fair competition.

Did the Competition Authority look at the destination of the imports that come in through Dublin Port? Is the cargo staying in the Dublin region or is it being transported beyond that region? That is an interesting factor because we need to be aware of how the internal transport costs are playing into the whole mix. Similarly, are the exports from Dublin Port originating mainly in the Dublin region or have they been transported from other regions for onward transport from Dublin Port? Has the Competition Authority gone into that level of detail? If we are to maintain healthy competition, we need to look at the regional movement of export and import cargo and consider utilising the potential of existing ports. Perhaps some of the traffic could be directed to other ports in a more efficient way.

Regarding proximity to trading partners, I repeat that the Port of Waterford and Rosslare Europort are nearest to mainland Europe. When transport costs were mentioned, I presume it was in reference to the cost of rail and road transport, but the proximity of the port to our trading partners is also a factor. Is the proximity of the Port of Waterford and Rosslare Europort to the ports in Great Britain and mainland Europe taken into account? How do the transport costs balance once they arrive on the mainland?

I note the concerns about existing practice and management. I would have serious concerns about the continuation of leases without a review of the terms and conditions. I am amazed that key performance indicators and efficiency measurements are not included in the new licensing applications for stevedores, for example. If they are not, should we as policy-makers not be asking questions on the reason they are not part of the licensing arrangement? What can be done about this in the short to medium term? Another Deputy mentioned that one cannot break long-term leases or licence arrangements, but when they come up for review, is it just a recommendation that the Competition Authority will look at the means of making them more competitive? Has the Competition Authority a view on what we can do about addressing that problem, which has not been under the spotlight?

What three things should change in the short term to improve competition in the port sector? I am aware that the Competition Authority has made recommendations, but I would like its representatives to outline the three things that should change in the medium term to improve competition in this area. This is very important for the economy, given the level of imports to and exports from our island nation.

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