Written answers

Friday, 6 September 2019

Department of Transport, Tourism and Sport

Brexit Preparations

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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1650. To ask the Minister for Transport, Tourism and Sport if his Department has carried out an audit to date of the shipping capacity of Ireland in the event that the south England landbridge becomes unusable in a no-deal Brexit scenario; and if additional ferries have been secured to allow for direct transport to European ports of Irish-produced goods by firms based here. [36863/19]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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The 2018 Irish Maritime Development Office (IMDO) report on the Implications of Brexit on the use of the Landbridge acknowledges that “for Ireland, maritime links represent a key means of ensuring its direct connectivity with mainland Europe, particularly in view of the uncertain evolution of trade flows passing over the United Kingdom 'land bridge'. The viability of the ongoing use of the landbridge route to access the single market in a no deal Brexit scenario is a serious concern for Irish importers and exporters and the impact of any disruption to the landbridge cannot be predicted with any degree of certainty, particularly in a no-deal scenario.

My Department in conjunction with the IMDO, has consulted extensively with stakeholders regarding maritime capacity for direct sailings between Ireland and continental EU ports as a potential alternative route for trade currently using the Landbridge. Just this week (on 4 September 2019) a Workshop, organised by my Department and the IMDO, with some 90 participants drawn from importers, exporters, shipping companies, ports, shipping agents, and other key stakeholders, and focussed on this specific issue, was held in Dublin.

In the context of Brexit, there have already been significant market responses from the shipping companies adding additional freight capacity on direct ferry sailings to continental Europe including:-

- In 2018, CLdN launched MV Celine, the World’s largest RoRo vessel, and in 2019 launched the MV Laureline RoRo vessel, significantly increasing capacity on the Dublin–Rotterdam and Dublin -Zeebrugge routes.

- Irish Ferries' investment of €150 million in its newest passenger and freight vessel, MV W.B. Yeats, provides year-round freight capacity between Ireland and France of 165 HGVs per sailing or 60,600 HGVs per annum, and a vessel of similar size to the W.B. Yeats is due to be delivered on the Irish Sea routes in 2020.

- In May 2018, Brittany Ferries launched a direct route from Cork to Santander in northern Spain.

- In July 2019, BG Freight Line announced the commencement of a direct Waterford-Rotterdam weekly LoLo freight service, which will act as a deep-sea feeder through Rotterdam port and onwards to worldwide destinations.

These increases in capacity show the readiness of market participants to respond to shifts in trade patterns resulting from Brexit.

In a ‘No-Deal’ Brexit scenario, it will take some time for stakeholders, including importers and exporters, to fully adapt their supply chains, which are currently optimally arranged including through use of the UK landbridge in many cases, to the new situation. However, the assessment of my Department and the IMDO, based on extensive and ongoing consultations, including with the shipping sector, is that sufficient capacity should be available on direct routes to continental ports following a ‘No Deal’ Brexit and should demand for further capacity arise, the shipping sector can and will respond quickly to meet such demands.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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1651. To ask the Minister for Transport, Tourism and Sport the contingencies in place for trading enterprises in the transport and haulage sector in the event of a no-deal Brexit; and the discussions he has had with the EU Commission regarding flexibility in respect of state aid thresholds for trading enterprises using port facilities to transport goods to continental Europe or transporting goods via the current UK landbridge in such an event. [36865/19]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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My Department's website, , provides full information on the implications of Brexit for the transport sector and also contains links to supports that are available generally to businesses impacted by Brexit, including the haulage sector, through the Department of Business, Enterprise and Innovation. These extensive supports, schemes and advice are intended to ensure that businesses are prepared for Brexit, and are assisting businesses to meet their challenges by identifying key risk areas and the practical preparatory actions to be taken over the coming weeks. Details can be found on their website .

In addition, the Communication published by the European Commission on 4September contains a new and additional legislative proposals relating to contingency measures. Importantly for the haulage sector, the Commission has proposed to extend the regulation ensuring basic road freight and road passenger connectivity(Regulation (EU) 2019/501) which was due to expire on the 31 December 2019. The Commission proposal provides for an extension until 31 July 2020, reflecting the logic and the duration of the original Regulation which had been adopted prior to the extension of the Article 50 period to 31 October 2019. The extension of this Regulation will provide certainty to transport operators about continuity of services cross-border bus and international road haulage.

The new Commission detailed checklist will help those businesses that trade with the UK to identify what final preparations may be required. In order to minimise disruption to trade, all parties involved in supply chains with the UK – regardless of where they are based – should be aware of their responsibilities and the necessary formalities in cross-border trade. This builds on previous Commission communications and 100 stakeholder notices, which cover a broad range of sectors.

The continued use of the landbridge as a key route connecting Ireland with the continent is a crucial concern given the level of imports and exports that are transported via this route, it is estimated that 16% of the Roll-on/Roll-off traffic between Ireland and GB is traffic using the landbridge to transport goods to and from European ports. The total value of our trade using the landbridge has been estimated to be approximately €21 billion. Goods using the landbridge include many time-sensitive or perishable goods, with almost all of this traffic being handled by Dublin and Rosslare ports.

Some trade currently using the landbridge route may, depending on the nature of the product, switch to the direct routes to the continent. For others, some delays at UK and other EU ports may not be such as to constitute a significant deterrent to the continued use of the landbridge. However, the use of the landbridge for some other products that are perishable or very time sensitive may become unviable and may also not be viable on the longer direct maritime links.

Officials from my Department have assessed the maritime capacity for direct sailings between Ireland and continental EU ports as a potential alternative for trade that currently takes place using the Landbridge. Based on consultations with the shipping sector and wider stakeholders, the preliminary assessment is that sufficient capacity will be available on direct routes to continental ports from end October 2019, and should demand for further capacity arise, the shipping sector can respond to meet such demands.

Furthermore, on 4 September 2019, my Department in conjunction with the IMDO, hosted a workshop in relation to Maritime connectivity. A range of stakeholders attended, such as importers, exporters, ferry companies, haulage companies and business sectors. The aim of this workshop was to provide a forum to consider the risk posed by the UK Landbridge and the options for future direct connectivity to continental ports.

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