Trade and Financial Review
I am pleased to report that 2018 was another very successful year for Dublin Port Company. Trade levels grew by 4.3% over the previous year and a record throughput of 38.0m gross tonnes was achieved. Following a sustained period of growth over the last six years we have seen volumes through the Port grow by 35.7% and as a result throughput is now 7.1m tonnes (22.8%) higher than the peak in 2007 prior to the economic downturn.
The growth achieved in 2018 was shared across both imports and exports. Imports grew by 5.5% from 21.5m tonnes to 22.7m tonnes while exports increased by 2.5% from 14.9m tonnes to 15.3m tonnes. The increase in trade was underpinned by strong growth in all main sectors of the business. Unitised volumes grew by 3.0% to 31.0m tonnes and now account for almost 82% of Port volumes. Bulk volumes grew by 10.7% to 7.0m tonnes following strong growth in oil imports and cereals / animal feed products.
The growth in throughput volumes has contributed to another strong financial performance in 2018 and in this regard:
- Turnover increased by 5.7% from €85.5m to €90.4m
- Operating Profit increased by 1.9% from €46.5m to €47.4m
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 4.1% from €53.6m to €55.8m
- Profit for the Financial Year increased by 2.3% from €40.6m to €41.5m
In previous reports I have set out the work we have undertaken to develop a well-structured planning regime to ensure that Dublin Port Company continues to deliver on its core mandate to facilitate trade. This planning regime is founded on the Company’s Masterplan.
Dublin Port Masterplan 2040 – Reviewed 2018
During 2018 we published Masterplan 2040 – Reviewed 2018, updating the long-term development plan for the Port first published in 2012.
The first review of the Masterplan commenced in 2017 with the purpose of ensuring that the Masterplan remains relevant and achieves its central objective of providing a clear vision for the sustainable development of Dublin Port into the future.
The context for the review has been economic resurgence (with six years of consistent growth in cargo volumes and each of the last four years a record year) and the evolution of national policy with the publication of Project Ireland 2040 National Planning Framework.
Masterplan development works at Dublin Port are already advanced, with construction of the Alexandra Basin Redevelopment Project well under way and capital investment of €1 billion planned over the next decade. Elsewhere, works have commenced on the development of the 44 hectare Dublin Inland Port adjacent to Dublin Airport. Between now and 2040, other major development projects are envisaged on both the north side of the Port and on the Poolbeg Peninsula to complete the development vision of Masterplan 2040.
Masterplan 2040 - Reviewed 2018 sets out four key changes to the Port’s development plans:
- The Port will now be developed based on an average annual growth rate of 3.3% from 2010 to 2040 rather than the 2.5% originally proposed in 2012
- The capacity of the Port will be increased to cater for a growth to an ultimate capacity of 77m gross tonnes by 2040 rather than the 60m gross tonnes as originally proposed in 2012.
- This will be accomplished with no further infill into Dublin Bay. The option of increasing Port capacity by an eastwards expansion into Dublin Bay has been definitively ruled out.
- Where Masterplan 2012-2040 had envisaged deepening the Port ultimately to 12.0m, this will not now happen and the current works to deepen the Port to 10.0m will be the final deepening of Dublin Port, the end of a process which commenced in the 18th Century with the completion of the Great South Wall.
The increase in capacity envisaged within the Masterplan will be facilitated firstly, by the development of the 44-hectare Dublin Inland Port located 14km from Dublin Port just off the N2 and secondly, by the specification of projects to maximise the use of Port lands on the Poolbeg Peninsula based on enhanced access via a new Southern Port Access Route (SPAR).
Masterplan 2040 - Reviewed 2018 is the culmination of an 18-month review period, supported by extensive public consultation and the completion of major environmental studies, including a Strategic Transportation Study and a Strategic Environmental Assessment, which identifies reduced environmental impact from the developments now proposed compared to what was originally proposed in 2012.
From the plans highlighted in Masterplan 2040 - Reviewed 2018, Dublin Port is bringing the second major Masterplan project (the MP2 Project) forward for planning. The MP2 Project will provide much needed additional capacity on the north side of the Port for Ro-Ro and Lo-Lo services to both the UK and Continental European markets.
Beyond this, the Masterplan describes developments for Port lands on the Poolbeg Peninsula, including the building of a new Southern Port Access Route (SPAR) to provide access between the Dublin Port Tunnel and the south port lands. These developments will constitute the third and final major Masterplan project and we envisage completing them by 2035.
The Masterplan also identifies the need for a review of Port infrastructure charges to ensure that Dublin Port can be developed in line with Government policy (zero exchequer funding) and in compliance with the EU Port Regulation 2017/352 which comes into effect in March 2019.
The Masterplan presents a vision for future operations at the Port and critically examines how the existing land use at Dublin Port can be optimised for trade purposes, both in terms of goods and passengers.
Infrastructure Development
One of the key outputs from the Masterplan review is the identification by Dublin Port Company of the options available to increase efficiencies at the Port and to provide additional throughput capacity to cater for the projected growth in Port tonnage over the period up to 2040, while at the same time reintegrating the Port with the City.
We are investing significantly in improving the road network within the Port to facilitate the efficient movement of goods to and from the various terminals and facilities in the Port. These improvements are being delivered to ensure that the investment in the Dublin Port Tunnel and the expansion of the capacity of the M50 can be adequately utilised by freight traffic to and from the Port.
The infrastructure options originally identified in the Masterplan included a possible new north-south port interconnector bridge. Since then, the National Transport Authority has included proposals in its Transport Strategy for the Greater Dublin Area 2016- 2035 to improve connectivity between Dublin Port Tunnel and the South Port area by the building of the SPAR. This opens up the possibility of significant additional Port capacity on the Poolbeg Peninsula.
The development options presented in the Masterplan Review are not a prescriptive menu of developments that will be carried out in Dublin Port, however, but a set of possible options for development, depending on demand and capacity, and subject to securing the planning and other necessary consents.
In the event that future growth rates turn out to be lower than projected, individual projects can be deferred or even cancelled. However, it is essential that the Company bring projects through requisite consent processes to ensure that projects can proceed in time to meet future growth in demand.
Expansion and the Environment
One of the biggest changes to the revised Masterplan is the decision that there is to be no further infill into Dublin Bay. The SEA Environmental Report identifies that the potential impacts of the revised development options are an improvement on the baseline established when the Masterplan was originally published in February 2012.
We will continue to work closely with DCC, the National Parks & Wildlife Service, the Environmental Protection Agency and other stakeholders in the implementation of the proposals outlined in the Masterplan. In particular, DPC will address specific requirements arising under the Birds and Habitats Directives in the context of any developments which have a potential impact on Natura 2000 sites.
We have agreed to implement a specific set of measures identified in the SEA to mitigate the environmental impacts of future developments. These measures will be developed in detail at the study stage and at the detailed design stage of future projects. We will also carry out a programme of environmental monitoring, as identified in the SEA.
Finally, we have committed to developing a Natural Capital Policy for Dublin Port to provide a guiding framework for sustainability in both the development and the operation of Dublin Port.
Port Traffic Volumes
The Masterplan also looks at the likely expansion in Port traffic volumes in the coming years. On the basis of current trends, Ro-Ro (Roll-on, Roll-off) freight will remain the largest component of the Port’s traffic to 2040. Providing and efficiently utilising lands for Ro-Ro freight is the single biggest challenge addressed by this Masterplan.
We are satisfied that through a combination of utilising existing facilities and the possibility of building new facilities, there will be adequate capacity to allow the Port to handle future volumes of Lo-Lo (Load-on, Load-off) container trade over the period to 2040.
We have also recognised that the consumption of petroleum products will diminish as national and EU energy and climate change policies take effect, and so will seek to redevelop existing petroleum facilities in Dublin Port for alternative port uses as this occurs.
To accommodate the existing and anticipated level of Bulk Solid trade and to facilitate other types of freight activity over the period of the Masterplan, some improvements and consolidation of existing areas for handling these materials will be required.
Reintegrating the Port and City
In addition to the focus on Port capacity, the Masterplan will also guide the development of Dublin Port to achieve a second and equally important objective of reintegrating Dublin Port with Dublin City and with Dublin Bay. This will involve a range of projects and initiatives based on the Port’s heritage and on the natural environment. During 2019, we plan to commence construction of a 4km greenway for pedestrians and cyclists on the northern fringe of the Port overlooking the Tolka Estuary.
Future reviews
The revised Masterplan is founded on our commitment to the proper planning and sustainable development of Dublin Port. We have identified a series of projects which will bring the port to its ultimate capacity by 2040 and, in doing this, support the objectives of Project Ireland 2040.
Achieving sustainability is a considerable challenge and we are committed in Dublin Port to doing that in the case of port operations. Critically, the Masterplan provides certainty on the ultimate extent and environmental impact of the Port.
This was the first review of Masterplan 2012-2040. On-going monitoring of the performance of the Port and the achievement of the proposals outlined in the Masterplan will be a key element in effective implementation. Therefore, we have agreed that there will be periodic fundamental reviews no later than every 10 years to ensure that the course being followed by the Port does not deviate from what is actually required.
In carrying out each such reviews, we will consult with external stakeholders to ensure that the plan continues to represent the best solution for future development of the Port, the city and the preservation and protection of Dublin Bay. The next review of the Masterplan is due to take place between 2023 and 2028.
Conclusion
I would like to thank the management team and all the staff of Dublin Port Company for their continued commitment to the success of the Port. In particular I acknowledge the excellent stewardship of the CEO, Eamonn O’Reilly and the professional manner in which he has steered the Company through the initial stages of implementation of the Masterplan.
In addition to thanking our customers for their continued business I would like to thank all our stakeholders for their help and support over the course of the year.
I wish to thank the Minister and the dedicated staff at the Department of Transport, Tourism and Sport for their support and active engagement with us over the course of 2018.
Finally, I wish to thank my colleagues on the Board for their work over the past year.
Lucy McCaffrey
Chairperson
29th March 2019
