Written answers

Tuesday, 3 July 2018

Department of Transport, Tourism and Sport

Ports Policy

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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447. To ask the Minister for Transport, Tourism and Sport the reason the national ports policy states that competition between ports here should be a key policy goal in view of the fact that certain ports have selective access to financing under the TEN-T programme whereas others do not. [28707/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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As an island nation it is imperative that we have strong competitive ports to trade globally. Our commercial ports, however, differ greatly in size, capability and future potential. The long-term international trend in ports and shipping is toward increased consolidation of resources in order to achieve optimum efficiencies of scale. Therefore the core objective of National Ports Policy (NPP) is to facilitate a competitive and effective market for maritime transport services. National Ports Policy introduces a clear categorisation of the ports based on tonnage and the clear potential to provide future port capacity.

It is already evident that larger vessels requiring greater depths are becoming the norm, necessitating greater investment in ports. There is no Exchequer funding available for infrastructural development but the Ports of National Significance (Tier 1) are required to lead the response to future national port capacity requirements, as the development of large scale port infrastructure requires significant organizational, operational and financial resources. There is also a role in this regard for the Ports of National Significance (Tier 2) to develop additional capacity to aid competitive conditions, within the unitised sectors in particular.

National Ports Policy provides that the Ports of Regional Significance retain important roles as facilitators of their regional economies and, in some instances, as centres of marine-related amenity and tourism activities.

Similarly at a European level the planning, development and operation of trans-European transport networks (TEN-T) contribute to the attainment of major EU objectives, including contributing to further economic growth and competitiveness in a global perspective as set out in the Europe 2020 Strategy and the Commission White Paper entitled "Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system" ("the White Paper"). TEN-T aims to develop a Europe-wide network of roads, railway lines, inland waterways, maritime shipping routes, ports, airports and rail-road terminals in a resource-efficient and sustainable way.

The Tier 1 and Tier 2 Ports of National Significance are currently included on the TEN-T network, as they meet the necessary criteria under Regulation (EU) 1315/2013. The criteria to qualify for inclusion as a TEN-T Port are outlined in Article 20(2) of EU Regulation No. 1315/2013. These criteria were set at a European level.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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448. To ask the Minister for Transport, Tourism and Sport the position regarding the process to transfer ownership and management of tier 3 ports to the local authority concerned; and if he will make a statement on the matter. [28708/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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National Ports Policy, published in March 2013, provides that the five designated Ports of Regional Significance, Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow, will be transferred to more appropriate local authority-led governance structures. These five ports retain important roles as facilitators of their regional economies and, in some instances, as centres of marine-related amenity and tourism activities. However, the scale and nature of these activities are not such as to warrant continued central Government involvement.

The Harbours Act 2015 provides the necessary legislative framework to allow for the transfer of the Ports of Regional Significance to local authority control. The local authorities concerned have commenced a due diligence process with the ports due to be transferred.

Two ports have already transferred to local authority control. The first of these was Wicklow Port Company which was transferred directly under the control of Wicklow County Council on 30 August 2016. On that date, the company was dissolved and its assets, liabilities and employees were transferred into the Council. The transfer of Drogheda Port Company to Louth County Council took place on 2 October 2017 and involved a transfer of shareholding retaining the limited company structure.

Work on the transfers of the three remaining ports is progressing well. My Department continues to liaise with the local authorities and ports with regard to the transfer process and the model of transfer.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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449. To ask the Minister for Transport, Tourism and Sport his views on whether it is appropriate and effective for the CIÉ group to manage Rosslare Europort. [28709/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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The Deputy will be aware that Rosslare Europort is unique among the State-owned ports as it is not a stand-alone commercial company operating under the Harbours Acts, but is instead operated as a division of Iarnród Éireann.

The status of the port, and whether its current status potentially inhibits its development, was most recently considered in a strategic review, commissioned by my Department, and carried out by Indecon Economic Consultants.

That report concluded that the creation of an independent port authority would be extremely difficult, given the Port's complex legal structure. Instead, it was recommended that the port remain in public ownership and that the possibilities for increased private sector involvement be investigated.

In order to assist Iarnród Éireann's overall consideration of how best to move forward, the company then engaged consultants to assess market interest. The assessment was largely positive in terms of the potential for increased private sector investment in the port; however, it did identify possible implementation issues due to the complicated legislative basis of the port.

Following that assessment, my Department sought and received detailed advice from the Office of the Attorney General on the matter. That advice identified a number of legal issues with any such proposal and those issues remain under consideration by my Department.

Iarnród Éireann, which operates Rosslare Europort, is itself a subsidiary of CIÉ. Iarnród Éireann manages the port as one of its divisions. Rosslare Europort operates profitably and generated revenue of €10.6 million in 2017.

The Deputy may also be interested to know that Iarnród Éireann has advised that it has completed a commercial review of Rosslare Europort and will now prepare a business plan, to include consideration of the implications of Brexit for the port.

In addition, the Irish Maritime Development Office (IMDO), in conjunction with my Department, has been undertaking a study into the use of the UK landbridge by Irish importers and exporters.

The purpose of this research is to establish the volume of traffic using the UK landbridge at present, the likely consequences that Brexit will have on landbridge usage and the various alternative options that may be viable.

This piece of research is being finalised, is expected to be completed shortly and should inform the potential for the future utilisation of all ports, including Rosslare Europort.

Finally, I would add that I recently visited Rosslare Europort at the invitation of Minister of State Paul Kehoe and was briefed by the Europort’s management on the port’s commercial position.

This was a particularly valuable opportunity for me as Minister to witness the central role that Rosslare Europort plays within the economy of Wexford, and indeed the wider south-east, and to see at first hand its potential in terms of future development as a vital part of our country’s trading infrastructure. I am satisfied that Rosslare Europort, as a division of Iarnród Éireann, is effectively managing operations at the port and looking to the potential of the port to develop further and take advantage of any new opportunities.

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