dún laoghaire harbour company
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TASK FORCE REPORT ON PORT ESTATES
SUBMISSION TO THE MINISTER OF COMMUNICATIONS, THE MARINE AND NATURAL RESOURCES
Item 1.
An integrated and cohesive approach is required at policy level to ensure that ports are provided with clear policy objectives and that there is absolute clarity in relation to the mandates that are delivered to the ports. The strategic plan of each port must take account of the full economic role of the port and must be framed within a long-term strategic plan for the sector. The forthcoming publication of the National Spatial Strategy should be used to inform the definition of these roles.
Company Response
Agreed.
Item 2.
The ports must expand their strategic focus to embrace forms of revenue generation other than cargo handling. In all cases, greater emphasis on the property management functions of the ports is required. The future of a number of the smaller ports relies more on their performance as property companies than as cargo handling operators. As part of this new focus, the ports need to examine opportunities for the relocation of activities out of the port's vicinity, where the location of these activities in the port is not compatible with the port's optimal mode of operation.
Company Response
Agreed. We have increased its non-shipping revenues from 5% of total revenues in 1997 to an expected 25% of total revenues in 2003
Item 3.
A comprehensive audit of port properties should be undertaken and a programme of property management put in place. This audit should be used to identify authoritatively the estate available for development under current conditions and the scope for additional development if key functions were to be relocated outside the port.
Company response
We have already completed this exercise
Item 4.
Each port should be required to submit a detailed plan for the long-term development of all their assets. The current requirement is to produce a 5-year plan for the development of trading activities only. In order to ensure that dormant port estates are properly managed and developed, each port should be obliged to produce a masterplan every 5 years for submission to the Minister. As a requirement, the masterplan should be submitted to the Local Authority for the relevant area as this would encourage both coherent planning and public consultation. The major trading ports and other ports with sizeable estates should be required to re-value their properties every 5 years.
Company response
We are currently in the process of preparing a development plan for the harbour, which will include asset utilization.
Item 5.
Incentives to develop dormant port estates should be provided in certain cases, designated by the Minister, for example, by the introduction of designated Strategic Development Zones. As they require the development of a masterplan for the relevant area, the creation of such Zones would encourage both coherent planning and public consultation.
Company response
We would support an incentive based approach.
Item 6.
The onus to fulfil a function as a trading port should be removed from certain ports. Allowing dormant ports to exit from the port sector would increase the port estate available for development. Port policy needs to outline a concise and workable exit strategy for ports where this is appropriate.
Company response
Agreed
Item 7.
The constraint in the Harbours Act 1946 that prohibits borrowing in excess of £50,000 by the relevant ports deserves reconsideration.
Company response
Agreed. This provision does not apply to the Dún Laoghaire Harbour Company.
Item 8.
Each port should ensure a close working relationship with public authorities in its area through co-ordinating their development plans. Among these, the planning authorities and transport planners are of the utmost importance.
Company response
Agreed. We try at all times to work closely with the Local Authority in areas of common interest.
Item 9.
The direction and incentives must be in place to bring about the maximisation of the wider economic contribution of the ports, as well as achieving internal objectives. This requires recognition that the potential contribution of ports is greater than traffic throughput. The role of the Minister is important in this regard since he is in a position to represent the national or social interest.
Company response
Agreed.
Item 10.
For those non-trading ports who have as yet been unable to produce a coherent strategic plan for the development of their properties, control of the port estate should be transferred to Local Authorities once they have demonstrated their willingness, capacity and financial ability to develop such estates. To this end, the Local Authorities would be required to submit a developmental plan for port estates, acceptable to the Department of the Marine and Natural Resources, prior to any transfer taking place.
Company response
Agreed. The issue of proper funding is particularly important where the ports concern are of architectural or heritage significance.
Item 11.
The strategic plan of each port must take account of the full economic role of the port in regional development. The strategy must maximise the return from the port's assets under the broad headings of the efficiency of the transport sector, the impact of the port on local industry and its impact on the living environment in its area.
Company response
Agreed.
Item 12.
Environmental compatibility and sustainability are core requirements in determining the direction of development in the ports. Within this it should be emphasised that sustainability is not an automatic constraint on development and that a situation where the assets of the ports are not being used efficiently is inherently unsustainable. Once the trading mandate of the port is met, the concerns of local, environmental and residents' groups should be included in the planning of further development through a masterplan, if appropriate to the circumstances.
Company response
Agree.
Item 13.
The ports' approach to overcoming problems should emphasise commercial possibilities and solutions over legal approaches. The Task Force recognises that legal clarifications and legislative changes may be required in some instances.
Company response
Good commercial solutions must always have a proper legal framework.
Item 14
Both port authorities and leaseholders should be allowed to renounce their Landlord & Tenant Act rights. This option is available in relation to office developments but has not been extended to include other categories of commercial property. This route would introduce flexibility while preserving the existing security that is offered by the Act.
Company response
Agreed.
Item 15.
Ownership of foreshore should be transferred to the ports and a clear timescale set out in relation to planning procedures. This would not remove the necessity for the ports to engage in public consultation prior to any development of the assigned foreshore.
Company response
Agreed. The present arrangement is inefficient and a deterrent to the economic development of the port.
Item 16.
The private sector should be considered for alliances to maximise the return on the ports' assets. This involvement could take the form of PPPs or joint ventures. The optimal approach will depend on individual port circumstances.
Company response
Agreed. Private sector involvement should be encouraged where it can be demonstrated that it will lead to cheaper and more efficient port facilities.
Item 17.
The Task Force explicitly rules out the sale of any portion of the ports' estates to the private sector, except in those cases where the land is clearly surplus to future port-related developmental needs and where the land disposed of will not interfere with the subsequent development of the port estate. Any port that wishes to raise funds from selling its assets must fully explore opportunities for development within its ownership, including obtaining planning permission, before the land is sold.
Company response
Agreed.
Item 18.
Responsibility should be transferred to local authorities in relation to properties that have no prospect of providing a commercial return but which have amenity value to the public. Prior to any transfer taking place, the Local Authorities would be required to submit a plan to the Department of the Marine and Natural Resources for the management of these properties.
Company response
If non-commercial social and leisure facilities are to be transferred to local authorities, it is important that proper provision is made for long term maintenance and preservation of these facilities. Dumping of such facilities on county council's should not be seen as an easy means of improving port profitability.
Item 19.
As shareholder, the Minister has considerable powers that should be used in full to influence port development and ensure that the potential returns from the public property in the ports is maximised. Among the most important aspects of this would be to ensure that social returns are given a higher priority in any plans for development in the ports.
Company response
There is a potential conflict between social and commercial returns. If the Minister does use his powers in the manner suggested, it should not result in individual ports being placed at a competitive disadvantage.
Additional Company Information
"Responding to your request for the views of the commercial port companies in relation to the findings contained in the report of the High Level Review of State Commercial Ports and the report of the Port Estates Task Force", view the whole letter here.
Report of the high level review group - Submission to the Minister of Communications, Marine and Natural Resources, view the whole report.