An investment of £140 million in the development of the Port of Belfast was announced today.
Belfast Harbour Commissioners’ five-year corporate plan includes:
· a new terminal – nearer the open sea – for Stena,
· enhanced container capacity,
· a new 200,000 sq ft animal feeds store,
· security updated to modern international standards,
· and progress on development of the 40 acre Titanic Quarter logistics park.
However the commissioners warned the government that uncertainty over its regulatory status could undermine the port’s ability to develop to full potential.
Frank Cushnahan, chairman of the Commissioners, said their plans involved “the most significant investment ever to be undertaken by the Port of Belfast over a five year period.”
He added: “This is a huge commitment which will be financed by a combination of the Port’s own revenue streams and external funding.”
The development would significantly benefit port users and the Northern Ireland economy as a whole, he said.
The Port of Belfast is Northern Ireland’s key hub, handling 66% of its seaborne trade and 25% of that for the entire island of Ireland.
However the port expects unprecedented levels of competition, driven by a dramatic growth in global freight traffic and the possibility of a new port development across the border near Drogheda.
“The Irish Sea sector has always been competitive, but we anticipate that there will be a step change over the medium term,” said Mr Cushnahan.
Competition was good for port users and the economy and was welcomed, he said, but warned the Government it was vital the implementation of the port’s revised constitutional status was completed by 2007.
“As agreed with Government, making the Port of Belfast a trust Port with Extended Powers will provide it with the commercial, financial and managerial freedoms necessary to compete in the modern economy, while enhancing the post’s public interest ethos.”
However he warned that a recent government decision to designate certain ports – including Belfast – as public corporations could hamper its development.
The Commissioners needed to work closely with the Government to address the recent classification, he said.
“This significantly undermines the flexibility envisaged by ‘Extended Powers’ status and means that projected port borrowings of £60m will have to be sourced from the public purse.”
Importantly, public corporate status means borrowing will have to come from the Government and would be classified as public debt.
References: EGi News 18/11/05
