Oireachtas Joint and Select Committees

Wednesday, 1 March 2023

Joint Oireachtas Committee on European Union Affairs

Impact of Brexit on Ireland: Discussion

Mr. Glenn Carr:

Rosslare Europort is the second busiest port in the country. It is a port of strategic importance, which has never been demonstrated so much as over the past couple of years. It now handles between 18% and 20% of all ro-ro traffic in the country and almost 600,000 passengers passed through the port last year, which is just 5% below pre-Covid levels. The significant increase in shipping services has come about post Brexit. For example, at the start of 2020 we had six services to and from Rosslare to just one port in Europe. Today there are 36. That has resulted in the EU freight growing cumulatively by more than 398% in the past two years. We now serve the ports of Bilbao in Spain, Cherbourg, Le Havre, Dunkirk and Zeebrugge. Rosslare is now the number one port in Ireland for EU ro-ro and passenger services. It is important to point out that these new services, established post Brexit, were essential for our exporters and importers and for ensuring supply lines were provided an alternative to the UK land bridge, which had been the preferred route pre-Brexit. The new routes have also been important for the new supply chains that have been established directly with the EU and on which so many of our exporters and importers now rely.

As we emerge from Covid this summer, we will see a substantial increase in passenger services to Europe. We expect to see substantial activity between Rosslare and the ports in Spain and France in particular. This has been very positive and further strengthens our links with the EU, particularly providing education, economic, social and other benefits for the towns and regions associated with these ports. We are very confident that, two years post Brexit, we are seeing a trend of rising demand and a continuation of that demand for services to Europe. Most recently, we introduced a new service to Zeebrugge with Finnlines, which is part of the Grimaldi Group. Last weekend it doubled that capacity with the announcement of a second ship on that route. It gives us confidence that these direct services will be maintained and, over coming years, will be increased through extra capacity and the potential of additional new routes.

While European freight has been extremely positive, trade with the UK has been adversely affected by Brexit. UK traffic cumulatively is down 36% over the past two years. It is very evident that a substantial shift in the supply chain between Ireland and the UK has now occurred. It will be important that all stakeholders work collectively to ensure sustainability of these routes, which are very important for our connectivity with the UK.

It is positive that both operators, Irish Ferries and Stena Line, which operate to Fishguard and Pembroke, have maintained their schedules, but there is no doubt freight has been challenged. There are positives on the passenger side, with the advent of duty allowance on those vessels. Now that we have come through Covid-19, we will see substantial numbers using those services, from a passenger perspective. Our view is that, in the longer term, freight between Ireland and the UK will remain challenging.

A lot of planning went into the port, both pre and post Brexit. There was a temporary border inspection post facility, which remains fully operational today, just outside the port. That was helpful during the initial stages of Brexit because it meant all UK traffic that may have been affected and European traffic could move away from the berths and traffic that was to go into the border control post was directed outside of the port. There was a smooth transition. As we look back, we know the issues that were expected at ports related to heavy congestion did not materialise. This was mainly due to the planning put in place by all of the ports involved, the rapid shift to direct services and having the direct service capacity and frequency available for industry.

There will be significant investment in Rosslare Europort, particularly starting off later this year. We have agreed with the Office of Public Works, OPW, that the border inspection post now needs to come inside the port. That is required by the EU. The current post is outside the port and the secure zone. Technically, we were under a derogation for that operation, which will change over the next few years. We have reached agreement with the OPW regarding the phasing of works to build a new facility, which will be substantial on nearly 12 acres inside of the port. It will be aligned with our master plan to ensure the phase of works to deliver the master plan over the next three to four years is done in a synchronised way to ensure the port operates efficiently and safely for our customers and colleagues working at the port.

The other important development we have seen with Rosslare Europort, particularly with Wexford County Council, Transport Infrastructure Ireland, TII, and the work of the elected representatives in County Wexford, is that the connectivity of Rosslare has been moved forward. It is important the road and rail development into the port continues because we must ensure Rosslare is easily accessible and connected to all major cities and industrial hubs throughout Ireland, so the port can be fully maximised for the position it is now in.

While it may seem like a separate matter, Rosslare Europort is ideally located for offshore renewable energy, ORE. It has undergone an extensive review of the opportunity for offshore wind renewable energy at Rosslare. We are in the advanced stages of design, planning and funding for that project, which will see the footprint of the port almost double. Rosslare will play a critical role as the first port in Ireland to support the offshore renewable energy industry for critical offshore wind development farms in phases one and two in the Irish and Celtic seas. Also, the links we have established with Europe as regards roll-on and roll-off shipping activity are also beneficial to this industry, as many of the smaller components come in on ro-ro vessels. Our connections to so many European ports will be beneficial to that industry.

From our point of view, while the past two years have been challenging, they were also successful. We are one of the fastest growing ports in Europe. We are one of the only ports in Europe to have the three largest ro-ro passenger brands in the world operating out of it. There are big investments we need to get on with now, which will happen later this year. Those works will be completed over the next three years. There will be challenges within those works as we have to upgrade the entire port. However, there has never been a better time to ensure we get that done because Rosslare Europort will continue to grow and play a leading role. Offshore wind development is in progress and it is also worth pointing out that once that facility is built, the site will be multi-modal, meaning that once the heavy offshore staging, marshalling, pre-construction and installation of the turbines are completed, there will be a great facility for the east coast which will be both ro-ro and lo-lo. Dublin will face some challenges and Rosslare Europort will be ideally positioned to support Dublin Port regarding transfer of excess traffic. It can easily move down to Rosslare, as we have seen in the last few years with Brexit.

Personally, and on behalf of Irish Rail and CIE, I thank the Ministers, Secretaries General and their teams from the Department of Transport, the Revenue Commissioners, the Department of Agriculture, Food and the Marine, the Department of Health, the Office of Public Works, TII, Wexford County Council and the elected representatives of County Wexford and the wider south east for their continued support of Rosslare Europort over the last two years. We look forward to that support continuing as we embark on ambitious investment plans for Rosslare Europort to ensure it remains a gateway to Europe and the offshore renewable energy hub of Ireland.