Written answers

Wednesday, 12 October 2022

Department of Transport, Tourism and Sport

Ports Policy

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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35. To ask the Minister for Transport, Tourism and Sport if the port capacity study is now complete; the date on which it will be published; and if he will make a statement on the matter. [50511/22]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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38. To ask the Minister for Transport, Tourism and Sport when the National Ports Policy review will commence; and if he will make a statement on the matter. [50527/22]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I propose to take Questions Nos. 35 and 38 together.

The port capacity study is currently underway and is due for completion shortly. Upon its finalisation a full review of National Ports Policy will commence later this year which will look at the overall ports policy framework.

National Ports Policy provides the overarching policy framework for the governance and future development of Ireland’s state port network. The responsiveness and competitiveness of Ireland's maritime transport industry are underpinned by National Ports Policy 2013. It has helped foster competition between ports and ensure minimal barriers to entry for shipping companies seeking to enter the Irish market.

The aim of the National Ports Policy is to facilitate a competitive and effective market for maritime transport services and to ensure that the system has adequate and efficient capacity. It included a commitment to undertake regular independent assessments of port capacity starting in 2018. A consultancy team were contracted to assess the capacity of Ireland’s port network. However, COVID-19, Brexit, and more recently the Russian/Ukraine conflict have been a key priority for stakeholders and has delayed this work.

The national and international environment for which the 2013 policy was developed has changed fundamentally. As Minister, I recognise that a new approach is needed to assist our ports with the environmental, technological, demographic, and geopolitical challenges of the next decade and beyond.

In line with National Development Project objectives and National Ports Policy, the State ports are continuing to progress projects under their Masterplans. The Ports of Dublin, Cork, Shannon Foynes and Rosslare will spend €144m in capital expenditure in 2022 and almost €500m over the next five years. These non-exchequer funded investments will enhance Ireland’s capacity and connectivity and will allow the ports to respond to market needs, handle increases in ship sizes and frequency and serve the import and export needs of the economy.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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36. To ask the Minister for Transport, Tourism and Sport if his attention has been drawn to a report (details supplied) regarding the readiness of ports for the construction and installation of offshore wind; if he has considered the report and plans to ensure that Irish ports are ready to construct and install offshore wind farms; and if he will make a statement on the matter. [50512/22]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I welcome the contents of the National Ports Study commissioned by Wind Energy Ireland (WEI) which provides a useful profile of port infrastructure and the proposed development plans of the port companies for both fixed and floating installations.

Ireland has ambitious plans with regard to the development of Offshore Renewable Energy (ORE) in the Seas around Ireland. This report aligns with Government Policy I published last December on the facilitation of ORE by Irish Commercial Ports in identifying that a number of port facilities will be required for deployment activity and a multiple of ports will be needed for O&M operations. Delivery of the necessary infrastructure is ongoing in ports to address the requirements of industry.

Ireland will potentially need to build on a phased basis, around 4 to 5 standard ORE port facilities (each capable of building 500 MW of ORE annually) that will act as construction and deployment ports over the next 25 – 30 years. In addition, a number of smaller ports will be required for ORE Operation and Maintenance activities.

A multiport approach will ultimately allow investments that are commercially viable in the long-term progress without undermining the ability of any port to meet its primary obligations in relation to the facilitation of international trade.

Officials in my Department have engaged with WEI in relation to the Study and the association, along with Marine Renewable Industry Ireland (MRIA), made a presentation last week at the ORE Ports Co-ordination Group chaired by my Department.

In relation to the Study recommendations directed at the Department of Transport, already arrangements are being made to facilitate more regular exchanges of views and updates between the Department and the industry representative associations.

In relation to funding, it is envisaged that like all port infrastructure, the ORE facilities will be funded through a combination of port revenues, EU funding and borrowing from the likes of ISIF, EIB and other financial institutions. My Department is already engaging with the various institutions, including the EU Commission, about the availability of funding for ports in providing the ORE infrastructure to meet EU and Ireland's ambitions.

In relation to the other recommendations, significant work is ongoing at official level across a number of Government Departments to accelerate and drive delivery and capture the wider and longer term economic and business opportunities associated with the development of offshore renewables in Ireland.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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37. To ask the Minister for Transport, Tourism and Sport the way in which he intends to support Rosslare Port to become ready to act as a construction and installation port for offshore wind; and if he will make a statement on the matter. [50513/22]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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Rosslare Europort is unique among the State-owned ports, as it is not a commercial company operating under the Harbours Acts but is instead operated on a commercial basis as a division of Iarnród Éireann. Like all other commercial state ports, its investments must be funded from port revenues.

While the primary function of our commercial State ports is to facilitate maritime transport, it is recognised that there is a pressing need for Ireland to have the port capacity in place to exploit the opportunities presented by ORE.

To provide clarity to stakeholders, including ports, I published a Policy Statement in December 2021 on the facilitation of Offshore Renewable Energy by commercial ports in Ireland, setting out a Government's multiport approach to the provision of the necessary port facilities.

Ireland will potentially need to build on a phased basis, around 4 to 5 standard ORE port facilities (each capable of building 500 MW of ORE annually) that will act as construction and deployment ports over the next 25 – 30 years. In addition, a number of smaller ports will be required for ORE Operation and Maintenance activities. A multiport approach will ultimately allow investments that are commercially viable in the long-term progress without undermining the ability of any port to meet its primary obligations in relation to the facilitation of international trade.

Located on the east coast where the first Offshore Wind Energy (ORE) developments will progress, Rosslare Europort is ideally situated to service a range of windfarms in the Irish Sea.

A number of ports, including Rosslare, and private entities are already progressing plans to provide the facilities and infrastructure required to assist the ORE sector to develop in Ireland. It is intended that the first largescale facilities that will be required at construction and deployment stage will be in situ as early as possible, subject to all consents being obtained in a timely fashion.

In order to capture the wider and longer the economic and business opportunities associated with ORE, significant work is ongoing at official level across a number of Government Departments to accelerate delivery of the various workstreams that are needed for the development of ORE in Ireland, including the delivery of port infrastructure. This includes the establishment of a Ports Co-Ordination Committee in this Department which involves ports and relevant Departments to ensure alignment with Government policy in the delivery of the port projects.

Work is also underway in the Department of Environment, Communications and Climate in preparation for the holding of the Offshore Renewable Energy Support Scheme (ORESS1) auction. The completion of this auction will provide clarity around the projects to be progressed and allow for deeper engagement between developers and ports on requirements and revenue streams for services. In addition, the Government has decided that ORE projects will be prioritised through all planning and consenting stages.

It is envisaged that like all port infrastructure, the ORE facilities will be funded though a combination of port revenues, EU funding and borrowing from the likes of ISIF, EIB and other financial institutions.

In order to maximise EU funding opportunities, the Department engaged extensively with other Member States and the Commission advocating for the inclusion of funding for ORE required port infrastructure under the Connecting Europe Funding facility (CEF). The CEF criteria was extended in 2021 to allow EU funding of port infrastructure for ORE for ports (or terminals within ports) on the Trans European Network for Transport (TEN-T). This is significant as successful applicants can obtain grant funding of up to 50% of eligible costs for studies and up 30% of infrastructure works costs. This is a competitive process and generally oversubscribed. While the outcome of the 2021 CEF call was disappointing, the 2022 CEF call is now underway. It is expected that ports, including Rosslare Europort, will be making new applications for EU funding under that call. The Department assists, as appropriate, eligible applicants with the application process. In addition, my Department and I engaged intensively with the EU Commission, along with separate feedback to ports, to understand the 2021 decisions so that we could work towards a better outcome for the 2022 CEF call.

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