John O'Mahony (Mayo, Fine Gael)
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The purpose of this meeting is to engage with Mr. Des Whelan, chairperson designate of the Port of Waterford Company in order to discuss the approach he proposes to take when appointed to the role and his views on the challenges facing the port. Members will be aware of the Government decision of May 2011 which put new arrangements in place for the appointment of persons to State boards and bodies. The committee welcomes the opportunity to meet the chairperson designate in public session to hear his views. I trust this provides greater transparency to the process of appointments to State boards and bodies.
On behalf of the committee I welcome Mr. Des Whelan. By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to this committee. However, if you are directed by the committee to cease giving evidence in relation to a particular matter and you continue to so do, you are entitled thereafter only to a qualified privilege in respect of the evidence. You are directed that only evidence connected with the subject matter of these proceedings is to be given and you are asked to respect the parliamentary practice to the effect that, where possible, you should not criticise or make charges against any persons or entity by name or in such a way as to make him, her or it identifiable. Any submission or opening statement you have submitted to the committee will be published on the committee's website. Members are reminded of a long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the House, or any official by name or in such a way as to make him or her identifiable.
I call on Mr. Whelan to make his opening remarks.

Mr. Des Whelan:

I thank the Chairman and members for the opportunity to address the committee on how I envisage the Port of Waterford progressing during my chairmanship over the next five years.

I will begin by running through some of my experiences in business as a director and chairman of some businesses. I have been in business in Waterford for 36 years. I operated a local radio station for a decade and then won a licence in 1989 to broadcast to Waterford city and county. I have been doing that for the past 25 years and that is what takes up most of my time. I am the managing director of WLR. We celebrated 25 years broadcasting, as members of the committee probably know - the committee had a reception not so long ago for the industry here. When the industry was very young I was involved in setting up the advertising services and the independent news sector for the broadcasting industry. I was an original founding shareholder in Newstalk.

At the start of 2000 I was involved in a number of licence applications and I was eventually successful in putting together a consortium and establishing a company to win Ireland's first regional broadcast licence for Beat 102-103. I am also a founding shareholder and chairman of Radio Nova in Dublin and chairman of Red FM in Cork.

My day job is very much about running WLR and I have a great interest and passion for things in Waterford. For the past three years I have been a director of the Waterford Treasures museums in the heart of the Viking Triangle, which is playing a very important role in the rejuvenation of the city.

I am also chairman of the organising committee of the Waterford Viking marathon. Waterford was previously the only city in Ireland that did not host a marathon. This work was part of my day-job running Waterford Local Radio, WLR, and the marathon has been held successfully for the past three years.

I was part of the marketing committee when Waterford hosted the tall ships in 2005 and I chaired the overall organising committee when the tall ships returned in 2011. This was deemed by most to be a success, attracted the largest ever crowds to the city and generated a major economic boost. I had great support in this from everyone involved. I have a great passion for the sea and Ireland's maritime sector - I do some boating and hold a coastal skipper certificate.

One might wonder how a person involved in the broadcasting sector has ended up as chairman designate of a port. I have some background experience in this area. My father was a cattle dealer in the south east for many years and shipped cattle to the UK every two weeks. My first job was on the quayside loading cattle onto ships in the 1960s, which I remember fondly.

I realise it is an honour and a considerable responsibility to be asked to chair the Port of Waterford company. I gave the offer much thought before accepting it. This is not something I take lightly and I appreciate the challenges that lie ahead. I hope that my experience, the experience of the board and the commitment of the management and staff of the company will bring prosperity to the port.

Waterford is 1,100 years old this year and it has a wonderful history starting from the Vikings who came up the river in longboats. Many trade routes were established between Waterford and great European and American ports over the centuries. As the country's oldest city, Waterford has a tremendous maritime tradition. Waterford Harbour Commissioners was established in 1816 and in 1999 the Port of Waterford became a commercial semi-State company. In the 1990s it was noted that the city quays were too confined for modern shipping and the port moved four miles down river to Belview, County Kilkenny. The Port of Waterford is the fourth largest port in the Republic of Ireland and has Ireland's most modern port infrastructure. It is recognised as a port of national significance in the national ports policy of 2013. The Port of Waterford is a superb facility that has world-class road access and it is one of only two Irish ports with a direct rail link - it is also the closest Irish port to continental Europe. This starting point offers great opportunities to grow traffic through the port. In addition to its excellent location, there is a substantial development zone at Belview that will allow the port to expand its services and accommodate growth from companies that benefit from the location.

The port at Belview can cater for ships of up to 4,000 tonnes and 190 m in length. Ships carrying loads of up to 20,000 tonnes are common and ships with a draft of up to 9 m can be catered for either side of high tide. The port is currently served by a twice-weekly container vessel service to Rotterdam, via Dublin and Cork.

Waterford Port has the full support of Kilkenny County Council and Waterford City and County Council, along with other key public and private sector stakeholders. There is no doubt that a thriving port can facilitate economic recovery in the south east while benefitting from increased overseas trade. The Port of Waterford depends on imports and exports and, like many businesses in the south east, it was severely affected by the recession. Turnover peaked in 2008 at €12 million and revenues are now at half that figure. Waterford port made a loss from 2009 to 2012 but following a major restructuring, which saw staff numbers reduced from 49 to 27, the port made a profit of over €900,000 in 2013. This compares to a loss of €1.2 million in 2012.

Tonnage through the port of Waterford in 2013 amounted to 1,430,000 tonnes and the port’s share of the bulk market in Ireland increased last year to 3%.

The port does face many challenges. It carries a substantial pension deficit, which now stands at €7.2 million. That has reduced over the past three years from €10.9 million. Following the storms of last January and February, dredging costs will be doubled for 2014 and 2015. The port must also replace its current CEO, Stan McIlvenny, who retires in 2015 and it is to be hoped that the remuneration package will allow a high-quality successor to be secured.

At national level, there is reason for some cautious optimism about the future of the ports sector as economic recovery takes hold. For instance, Irish shipping and port activity rose by 4% in the first quarter of 2014 when compared to last year, according to the latest data from the Irish Maritime Development Office. The IMDO also reports that container traffic grew by 6% over the same period. While I have yet to chair a board meeting, I have been impressed by the positive attitude and culture of the workforce in the port. Corporate governance is excellent as are the health and safety standards in operation.

I must acknowledge the work of former chairman, Michael Flynn, and his board and the hard work of the CEO and his team. Anybody in business will understand the hard graft and effort that it takes to reduce company size during difficult times. The port now has a much lower cost base and a committed, hard working and well organised management and staff. Much of the hard work is done and the port is geared for growth. As the economy improves, it will be the new board’s priority to get further container services to the port and in particular a feeder service to Rotterdam, and to make those south-east businesses and transport companies using ports at the very least reconsider the attractiveness of using Waterford. Sales and marketing will be to the forefront of the business and it will be a priority to create new job opportunities as business improves. The port’s excellent location and world class facilities will be a very attractive proposition for the new Glanbia production facility at Belview and the reform of CAP will further increase the port’s agribusiness potential.

We are also confident that many more relevant businesses will locate at Belview and during my term as chairman I would hope that we can make a concerted effort to tidy up the old North Quays in Waterford and give visitors to the city a better first impression. This could also help in retaining and developing the port’s cruise business which – while not hugely significant to the port in revenue terms – is an important part of its contribution to the south-east region as cruise calls are an important driver of tourism revenues. The Minister's predecessor in the Department of Transport, Tourism and Sport, Deputy Varadkar, has appointed a skilled and experienced board and I look forward to working with the new board and management team to help continue to revitalise the Port of Waterford. Thank you.

John O'Mahony (Mayo, Fine Gael)
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Thank you. The motto "when you want somebody to do a job, ask a busy person" comes to mind. Mr. Whelan's CV is very compelling. I will hand over to the members.

Timmy Dooley (Clare, Fianna Fail)
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I thank Mr. Whelan for his setting out his stall. He has a passion for boating, understands the business, lives in the area and is interested in the wider community. He has demonstrated very clearly why he is being appointed and I wish him well. At this stage our questioning is almost unnecessary once he has shown he has the credentials to be appointed. We may invite him back at a later stage to deal with issues as they arise for the port. He has set out very plainly his skills and experience. I note he is the son of a cattle dealer. Coming from a small farm I understand that if he has learned anything from his father he will be well able to deal with the complexities of the business that is Waterford Port. I wish him well and look forward to seeing him develop that piece of infrastructure to the benefit of the south east.

Maurice Cummins (Fine Gael)
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I am not a member of this committee, but I thank the Chairman for letting me contribute. I am passionate about the port of Waterford, being a former chairman and having worked in the port for over 23 years. I actually had the honour of serving with Mr. Whelan's father on the Waterford Harbour Commission. It is clear that the port faces major challenges. Since 2006, it has lost approximately 40% of traffic, and probably a few hundred per cent since the 1990s, when the port was thriving and up to 300,000 TEU, 20 ft. equivalent units, were being shipped in and out. It saddens me to hear that there are now only two ships a week to Rotterdam. When I worked in the port, we had five or six ships to Rotterdam, four or five to Newport and one or two per week to Le Havre. Hopefully we can gradually get back to that situation.

As Mr. Whelan has said, the port is ideally situated. It probably has the best road access in the country. The rail access, however, is totally under-utilised. We must start using this means of transport again, because Waterford is one of only two ports in the country with direct rail access under the gantries. As Mr. Whelan pointed out, cruise ships are another area with great potential for growth, which would be of huge benefit to the tourism sector in the city. Mr. Whelan has a difficult job; much is done but there remains much to do in coming years, with a new manager in place. Marketing, and Mr. Whelan's experience in this area, will be key to advancing the port in future years. As the Chairman has stated, the members of the committee wish Mr. Whelan well, and I am sure he will be invited back after a year or so to report to the committee on his stewardship.

Mr. Des Whelan:

I need to find out more about how ports operate. In recent months, I have met all the customers of the port, including those running the cruises, many of the staff, and obviously Stan McIlvenny. Senator Cummins is quite right about the marketing; it is very important. The most important thing the port must do is to go out and ask for business. I would be strong on that.

Helen McEntee (Meath East, Fine Gael)
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I wish Mr. Whelan the best of luck. As Deputy Dooley stated, the committee will most likely invite him in again to the progress being made at the port. The biggest issue is to secure further services to the port, as Mr. Whelan pointed out, and to get as close to the 2008 figure of €12 million in turnover as possible.

Brendan Griffin (Kerry South, Fine Gael)
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I also wish Mr. Whelan the best in his new role. There is potential for a round-Ireland cruise, stopping at the various ports around the coast, including Waterford. Perhaps this is something that Mr. Whelan could keep in mind, along with colleagues from the other ports. Cruise liners coming in from different parts of Europe are certainly welcome, but we have a beautiful coastline, which could be showcased in an exclusively Irish cruise. I am not aware of any company that is doing that at the moment, and it is something that could benefit all the ports and coastal areas.

Maurice Cummins (Fine Gael)
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As we were reminded by Mr. Whelan, the cruise ships themselves do not generate a great deal of revenue for the port itself, but they are good for the economy of the surrounding area

John O'Mahony (Mayo, Fine Gael)
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Just a quick observation from the meetings Mr. Whelan has had so far with customers, etc., I note the figures and the challenges that have been pointed out here by members, namely the drop in traffic and turnover since 2006.

On the basis of Mr. Whelan's earlier observations, would he say that was more to do with the difficulties in the economy rather than the infrastructure or lack thereof around the port, or was it a combination of both?

As other speakers noted, we have heard a great deal in recent years about the potential for growth in the cruise ship market and the business that market brings to towns, cities and regions. Is there a requirement for a significant infrastructural upgrade to facilitate expansion in that regard at Waterford?

Mr. Des Whelan:

There are several factors as to why the port has suffered, the main one being the recession and the associated reduction in business. Ports like Foynes, Cork and Dublin are very busy and, from what I can see, Waterford did lose contracts to Dublin and elsewhere, which we will have to work to win back. That will not happen overnight, but we are now in a very competitive position. Anybody who drives regularly between Waterford and Dublin will be aware of the improvement compared with five or six years ago. There have been fantastic infrastructural improvements.

John O'Mahony (Mayo, Fine Gael)
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Is Mr. Whelan suggesting the improvement in the roads was a disadvantage to Waterford Port?

Mr. Des Whelan:

No, I expect it will be an advantage. The port has been through a very difficult time and the whole area was hit hard by the recession. There is potential for growth, but it is a case of going out and looking very hard for the business and doing everything we need to do with industry locally and in the south-east region. There is already a feeling that business is on the up, with a large volume of inquiries about Belview and the possibility of setting up a feeder service to Rotterdam. I am confident that will happen.

John O'Mahony (Mayo, Fine Gael)
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Glanbia is a major industrial player in the south east. Does it use Belview extensively for all its exports?

Mr. Des Whelan:

Glanbia does use the port but not for all its exports. The company is currently trialling a new milk production facility which will open in the new year. The port has tendered for the business associated with that. Again, however, we are talking about big logistics and the decision may well rest with the transport company that looks after Glanbia's logistics. I cannot anticipate the outcome of the tender, but we will do all we can to secure the business from Glanbia.

Regarding the cruise business, I met last week with representatives of the main agents for cruises coming into Waterford. Their view is that we could get more of this business. There were 277 cruise visits to Ireland this year, of which Waterford got only 17. In 1996, by contrast, there were only 100 such visits to Ireland, but Waterford got 24 of them. We certainly can do more to improve our performance. Tidying up the North Quays is an important step as we seek to bring as many of those cruise ships as possible into the city. The agents to whom I spoke argued that there is particular potential in trying to develop visits from European cruises, in a context where almost all of the 17 ships that came to Waterford this year were American. The cruise market is booming in Europe and there is scope to encourage more of them to visit Ireland. We will be working with everybody involved to ensure that happens.

People want the port to be successful and to emerge as a driving force in the economy in Waterford.

It needs to be seen as that as well. There is a lot of work to do but I am confident. The Minister made a point of meeting all the board members individually. I have been impressed. I think we will be a good team and will get things done.

John O'Mahony (Mayo, Fine Gael)
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I thank Mr. Whelan for his presentation. We wish him well on his new appointment. We thank him for coming in to engage with us. We look forward to engaging with him in the future.

We will send a copy of the Official Report for today’s discussion to the Minister for his information. Is that agreed? Agreed.