Mr. Des Whelan:

I thank committee members. I am accompanied by Ms Mary Mosse, a director of the Port of Waterford and a member of the audit and risk committee, and Captain Darren Doyle, harbour master of the port. I was appointed chairman of the board of the Port of Waterford in October 2014 and came before the Oireachtas committee in September of that year. I welcome the opportunity to update the committee on progress and developments at the port in the intervening five years.

The main focus of the board when I was first appointed was on recruiting a new chief executive, stabilising and bolstering the finances and attracting container services to address the requirements of local exporters such as Dawn Meats and Glanbia. This has been achieved owing to the efforts of a committed and performing board, management and staff. The management team, led by Mr. Frank Ronan who was recruited at the end of 2015, provides strong commercially focused leadership for the business. Its work is characterised by honesty and openness, which is highly appropriate and effective. The Port of Waterford is open and transparent in its dealings with shareholders, stakeholders and staff.

The Port of Waterford, a tier 2 port, is poised to increase its share of the Irish market owing to its proximity to the Continent and available capacity. This bodes well for the resurgence of the south-east region which, as we know, was badly hit by the recession. To summarise the performance of the port company in the past five years, bulk tonnage has increased by 52% and container traffic by 22%. Prior to the recession, our workforce stood at 56. The figure went as low as 30 before increasing in the past five years to 37. The accounting pension deficit has been reduced by over €4 million, from €5.5 to €1.2 million, while annual revenues have increased by 29% to €7.9 million and profits by 71% to €2.2 million. I am pleased to say that in 2019 the company paid the first ever dividend in its 200-year history to the Exchequer. This has been achieved by a clear business strategy as set out in our rolling five-year corporate plan. It has also been helped by providing increased depths to allow larger ships to come up the River Suir, investing in port infrastructure and building very good relationships with our business partners in the region.

Deputies may be aware of the new deep sea container feeder service owing to media coverage in July. This really is a game changer for the port and its stakeholders. For example, Glanbia processes and manufactures milk powder beside the port at Belview which is exported to China, Africa and the United States. It can now be exported from the Port of Waterford instead of being transported to Cork or Dublin. As a Brexit deadlock looms closer, the Port of Waterford has the capacity to accommodate any continental unitised traffic that is looking to divert from landbridge routes. It is prepared to play a vital role in mitigating any negative impact on the economy arising from Brexit.

In line with ports policy, the Port of Waterford has published its master plan to 2044. The plan will facilitate our mission to provide infrastructure and services to enable trade and economic development in the region. It follows significant investment in a hydrodynamic model of the Waterford estuary, the first such survey in 40 years and which has given a scientific foundation to the projects proposed to improve access for shipping on the River Suir. We can no longer ignore the consequences of failing to reduce carbon emissions and our reliance on fossil fuels. We owe it to future generations to reduce our energy usage and environmental emissions in general. In Waterford we have employed pool transport solutions, using electric vehicles, where possible. We are keen to promote the rail link which offers significant reductions in the carbon footprint in moving cargo by road.

The pension deficit at the Port of Waterford at one point reached €10.5 million. However, it has been reduced to €1.5 million. It is the board's intention that on completion of the sale of the north quays to the council in Waterford this year, the deficit will be cleared in full by year-end. Freed from this onerous financial burden, the Port of Waterford will be poised to generate cash for investment in facilities required to cope with projected future traffic flows, while continuing to generate a return for the Exchequer. The port has readied land holdings for port-related development, encouraging stakeholder investment in the port estate. Mindful of wider obligations, the board has been keen to co-operate with Waterford City and County Council in urban regeneration by disposing of its holdings on the north quays. This project is critical for the future development of Waterford and the south east. Investment has been made in the rebranding of the port, plant and equipment, the maintenance of port infrastructure, systems and new technology to ensure the highest quality of service for our customers.

We are mindful of our obligations in terms of governance. Much of our time is spent in ensuring compliance with relevant codes and directives which promote proper governance of the company on behalf of the Minister and citizens. I thank the Minister, Deputy Ross, for his support during my tenure and that of his staff in the maritime transport section. I am grateful to him for restoring the board to full strength with the filling of two vacant director positions this year and for my reappointment which I am pleased to accept. I am very pleased by what has been achieved at the Port of Waterford and look forward to further progress in the next three years as chairman.