Dáil debates

Thursday, 19 December 2013

10:30 am

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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11. To ask the Minister for Transport, Tourism and Sport if he will provide an update in respect of proposed works at Foynes Port, County Limerick including the possible re-opening of the Limerick-Foynes railway line to convey freight and other cargo to and from Foynes Port, and the construction of new jetty facilities at Foynes; if EU funding has been applied for in respect of these works; if he or his Department has been in a position to support any such applications for funds; and if he will make a statement on the matter. [54250/13]

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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The question relates to the recent designation by the Government of the Shannon Foynes Port Company as the only tier 1 port in the west and specifically connectivity from the port by road and rail.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Shannon Foynes Port Company, SFPC, with the ports of Dublin and Cork, was designated as a tier 1 port of national significance in the national ports policy published earlier this year. The tier 1 ports are also designated as core ports in the trans European network - transport, TEN-T, thus making them eligible to apply for EU funding under TEN-T and the connecting Europe facility, CEF. There is no State funding for port infrastructural development as it could be illegal under state aid rules, nor is there any capital funding available within the port or Iarnród Éireann for reopening the Limerick to Foynes railway line owing to budgetary constraints.

A number of studies have been carried out by Shannon Foynes Port Company of necessary jetty improvement works and future development. These proposals are outlined in the port's 30 year master plan, Vision 2041, which I launched last February.

The railway line between Limerick and Shannon-Foynes port is being maintained on a care and retention basis. Iarnród Éireann states it needs investment in the order of €10 million to reopen it for traffic. That can only happen if it is clear that sufficient volumes of freight will be transported on it and on foot of private sector investment. Meetings took place in 2012 between the SFPC, Iarnród Éireann and a number of potential line users.

The TEN-T executive agency provides funding towards the cost of studies and projects under the TEN-T programme. In November 2012 it launched a call for funding proposals which closed in February 2013. The European Commission makes the final decision on applications.

The SFPC submitted an application in February 2013 relating to preliminary works for the rail line reinstatement and certain jetty improvements.

My Department endorsed the application and a ministerial letter of support was included with the application. The project is costed at almost €13 million and the funding sought amounted to nearly €1.3 million. However, the application was not successful.

Shannon Foynes Port Company has since met with the Trans-European Transport Network executive agency, TENT-T, and the Commission to clarify any shortcomings in the project application. I understand the company intends to reapply for funding under the next round expected later in 2014. It is my intention to again issue a letter of support.

I also met with Siim Kallas, European Commissioner for Transport and the TEN-T agency on 5 December 2013 where I reiterated the Government’s support for several of Ireland's TEN-T CEF, Connecting Europe Facility, projects.

10:40 am

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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I thank the Minister for his reply. Given there are three ports of tier 1 status, Dublin, Cork and Shannon Foynes, will he accept the latter is the one with the greatest disadvantages in connectivity? Given its strategic importance on the west coast, along with its proximity to Moneypoint, Tarbert and Aughinish Island, there is a need for an overall plan for infrastructural connectivity to be developed. I know the Minister travelled the N69 recently from Limerick to Foynes and will be aware of the poor road quality and the number of towns it passes through. It takes a long time for hauliers and other port users to travel on the road and the traffic levels do have an impact on local communities.

What avenues are the Department, the National Roads Authority, NRA, and the Rail Procurement Agency, RPA, looking at with private equity to deliver improved road and rail infrastructure for the port? It is probably the best positioned port in the country with its shelter, depth and location. No other port can accommodate the size of vessels it can. However, it seems to be hamstrung by its road and rail connectivity.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Five ports are designated as being of national importance, Dublin, Cork, Shannon Foynes, Rosslare and Waterford. Within that, there are three tier 1 ports, Dublin, Cork and Shannon Foynes. All of them have their challenges. Dublin Port is a great port but it is in the middle of a city and its main channel needs to be deepened. Cork needs improved road access to Ringaskiddy. Shannon Foynes has challenges as the N69 provides substandard access to a port of its kind.

I see the potential for enormous growth in Shannon Foynes in the coming years. It is a deep-water and bulk port, meaning it can carry much cargo. However, it will need the existing road upgraded or a new road connection. The railway to the port can be reopened if there is sufficient business to justify doing so. The key step on that point is to secure the European funding. I am working with the port company in achieving that.

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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If there is to be a follow-up stimulus package of capital investment by the Department through the NRA into the road network, will he prioritise the N69 connection to Shannon Foynes as it is of strategic importance to the deepest port in the country? There has never been an opportunity before to see a port of this importance connected by rail into the national rail infrastructure. Will the Minister support efforts looking for investment in the port’s connectivity through public private partnerships and European institutions?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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A proper study needs to be undertaken of routes and constraints for a road upgrade. Limerick County Council has gone out to tender for reports on upgrades to the N69 and Adare bypass. These will help us make a decision in this regard. Connecting the port to the national network is not just a political priority but also a European regulatory priority because of the TEN-T CEF project.

I am enthusiastic about the reopening of the rail connection at the port and am open to considering any potential investors. The key point, however, that creates market concern is that it is not yet clear what cargo would run on the railway if it were reopened. No one wants to spend €10 million reopening a railway for it not to be used. There would need to be more certainty about what bulk would be going into and out of the port on the railway.

Written Answers follow Adjournment.