John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 203: To ask the Minister for Communications, Marine and Natural Resources if he will quantify the significant capacity shortfall that he has identified previously in ports capacity; the capacity shortfall in reference to each of the commercial ports operating in the State; his measures for dealing with this shortfall over the medium term; and if he will make a statement on the matter. [6598/05]

John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 204: To ask the Minister for Communications, Marine and Natural Resources his views on whether the ports are an aspect of critical infrastructure in the context of the country's infrastructure development; his further views on whether improvements in port capacity can be achieved as elements of critical infrastructure; and if he will make a statement on the matter. [6599/05]

Pat Gallagher (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 203 and 204 together.

In terms of the country's infrastructure development, our ports are vital gateways for commercial freight and sea passengers. This is highlighted by the fact that nine of the ten commercial State port companies are located in areas identified as gateways in the national spatial strategy. Almost all Ireland's overseas trade goes by sea, underlining the commercial significance of ports and their strategic importance. Measured by volume, 99% of the island's foreign trade uses the maritime supply chain. It is estimated that the value of these imports and exports through seaports in the Republic was €130 billion for 2003, compared with a figure of €7 billion to €10 billion through airports.

Most of the ports are State-owned companies with statutory commercial mandates and operational criteria. The port companies are required to take all proper measures for the management, control, operation and development of their harbours and are required to conduct their business at all times in a cost effective and efficient manner. This has led to strong independence of action and a focused commercial mindset. The Government expects that the port companies, as commercial entities, should be capable of funding their operations and infrastructure requirements without relying on Exchequer support. The port companies are, therefore, encouraged to seek financial assistance from other avenues such as private sector investment within ports.

The Government's ports policy statement was launched on 6 January 2005. It is available to view on the Department's website. One of the key areas addressed in the policy statement is the timely provision of "in-time" port capacity. In the context of the ports policy statement, I have recommended to the Government that a policy framework be put in place to ensure that capacity needs are identified, planned and furthered in a co-ordinated manner.

The Department commissioned independent consultants, Baxter Eadie Limited, to prepare a series of reports on seaport capacity and future projected capacity needs. Last year, Baxter Eadie Limited prepared a desk study update to identify the effect Ireland's changing economic circumstances has had on projected capacity needs at the seaports. The study takes into account current economic growth projections and looks at capacity up to 2014. Looking to 2014, the study has found that traffic is expected to grow by 16.2 million tonnes, some 35% over tonnage handled in 2003, while growth in capacity over the same period is projected at a very low level, about 1% over the period. These projections are based on known changes which have full approval for implementation and do not include any other plans for infrastructure improvements. A capacity requirement of 12.2 million tonnes is projected by 2014. The consultants state that the situation warrants decisions and further action to avoid increasing delays and congestion in some ports, particularly for unit load cargos. The Department recognises that the study by Baxter Eadie Limited is necessarily an inexact exercise, the implications of which will need to be checked against actual experience in each of the ports.

The Deputy has asked for details of the projected capacity requirement by reference to each of the commercial ports. However, I do not intend to release details relating to individual ports as the work by Baxter Eadie Limited is based, in part, on commercially sensitive information provided in confidence by the ports.

The Department is initially consulting the commercial ports concerned to determine their view of port capacity and how they intend to deal with the projected capacity requirement. The Department is interested in key projects identified by the commercial ports as essential to deal with anticipated capacity deficiencies to 2014 and beyond, and whether the ports see these being funded from their own resources or in partnership with the private sector. The policy framework encourages all port sector stakeholders to address capacity provision. The State will support capacity provision, as residual financier, but only if proven essential to further identified high quality self-sustaining projects.