Chairperson's Statement

Trade and Financial Review

Following a strong year in 2022, Port throughput in 2023 finished at 35.6m tonnes representing a decrease of 1.1m tonnes (3.1%) on the previous year, closely mirroring the performance of the overall economy.

The decline reflected a general slowdown in economic activity both in Ireland and internationally, driven by significant increases in inflation, higher interest rates and political instability due to the ongoing war in Ukraine and the conflict in Israel and Gaza towards the end of the year. GDP declined by 3.2% in 2023 with Irish exports declining by 4.8%, driven largely by the multinational sector. Modified Domestic Demand (MDD), a more reliable barometer of domestic activity, grew by only 0.5% in the year with the final quarter contracting by 0.4%.

Following a significant shift in post Brexit volumes from United Kingdon (UK) to European services, trading patterns seem to have stabilised. From a position of 65% in 2019, UK volumes accounted for 57% in 2023. Of ongoing significance is the fact that there is now an increasing trend to unaccompanied RoRo from the EU. In 2023, unaccompanied RoRo accounted for 74% of total RoRo volumes and this continues to have significant implications for land usage at the Port leading to capacity pinch points. Discussions in relation to the usage of State lands for the purposes of handling increased post Brexit volumes are ongoing.

We expect to see a return to growth in Port volumes over the medium and long term in line with forecasted growth in GDP by both the Central Bank and the Department of Finance.

Financial Analysis

Turnover for the year amounted to €101.4m representing a marginal decrease on the previous year’s record high of €101.5m.
Operating profit amounted to €38.7m which was €5.5m (12.5%) lower than in the previous year.
EBITDA (Earnings before Exceptional Items, net finance cost, taxation, depreciation, amortisation and impairment costs) amounted to €56.7m representing a €2.6m (4.4%) decrease on 2022.
Profit for the Financial Year amounted to €29.5m compared to €41.3m in 2022 representing a decrease of €11.8m (28.6%). 2022 included an exceptional gain of €10m relating to the receipt of a distribution under the Development Agreement with Earlsfort East Point.

A comprehensive overview of the Trading and Financial performance is set out in the Chief Executive’s Review and the Directors Report.

2023 Achievements

As I reflect on 2023 there are a number of specific achievements that I would like to highlight:

The opening of Terminal 4, a newly redeveloped RoRo freight terminal in the Port. This marks a major milestone in the delivery of the Alexandra Basin Redevelopment (ABR) Project and will futureproof Dublin Port’s cargo capacity by handling over one-fifth of RoRo units at the Port.
The continued development of Dublin Inland Port with a second operating licence being granted following an €8 million investment on a second phase of the development. This brings our total investment in Dublin Inland Port to €56m delivering critical storage capacity away from the quayside.
The granting of a shared license in Terminal 5 to Stena Line and Seatruck Ferries following the exit of P&O from the Port. The granting of a shared license further supports our objective of adding capacity and enhancing competition where possible, within the existing constraints on Port lands.
The official opening of our restored redbrick Substation on the corner of East Wall Road and Alexandra Road. The building has been expertly restored and reimagined as a modern interpretive centre and marks another milestone in achieving port-city integration, while affording visibility of the old city wall to visitors.
The commencement of construction on the Tolka-Estuary Greenway, a dedicated 4km cycle and pedestrian route along the northern perimeter of the Port. The works are nearing completion and will open to the public in 2024.

Delivering on our mandate

Dublin Port Company’s mandate under the Harbours Acts and National Port Policy is to provide the Port infrastructure needed to facilitate Ireland’s continued growth in international trade in tandem with other national ports.

A recently commissioned report from INDECON Economic Consultants confirmed the strong corelation between the performance of the national economy and the volumes that pass through Dublin Port. Following on from this, INDECON used forecast data from the Department of Finance and the OECD to predict long-term growth rates. These estimates were in turn matched with the Port’s plans to expand its capacity under its Masterplan 2040 capital programme. The independent report concluded that if Dublin Port could continue to deliver on its capital expansion plans then it could accommodate the projected growth in volumes which in turn would facilitate ongoing national economic growth. The report acknowledges the inevitable uncertainties with any economic and demand forecast. However, it is also cognisant of the potential risk of under-investment or delays. As stated in its conclusion; “From Dublin Port’s perspective, it is important to plan for a high-growth scenario so that capacity is available before demand must be met. This is because of the potentially very significant economic costs that would arise as a result of the inability of the Port to meet customer demand.”

It is also necessary to mention that the capacity expansion envisaged under Masterplan 2040 will take up to 16 years to complete. In the interim, the Port will continue to experience capacity pinch points with an average of 89% capacity reached in both LoLo and RoRo modes in 2023. Dublin Port continues to operate at a very high level of efficiency relative to other European ports and will have to continue to improve if we are to stay ahead of demand. It is also vital and pressing, that a sizeable portion of the 14.6 hectares of lands allocated in 2019 to accommodate Brexit are released back to Dublin Port to relieve immediate pressure on capacity. This has become more critical over time as the post Brexit patterns of trade have evolved and stabilised.

The Board will remain focussed on ensuring the timely delivery of critical Port capacity to meet projected demand via the continued delivery of the Masterplan 2040 capital programme and the optimisation of land and marine assets.

Strategic Infrastructure Development (SID) Projects envisaged under the Masterplan

In order to deliver the full vision of the Masterplan, we will need to implement three large scale Strategic Infrastructure Development Projects. Our focus to date has been on the first two of these projects – the Alexandra Basin Redevelopment Project (ABR) and the MP2 Project.

Alexandra Basin Redevelopment Project (ABR)

This project includes the deepening and extension of existing quay walls in Alexandra Basin, the provision of a new 270m long RoRo jetty together with two new RoRo berths within the inner basin, infill of existing Berths 52/53, and the dredging of the Liffey fairway channel to a depth of 10m below Chart Datum. The final main civil engineering elements of the project, the new quay walls at Alexandra Quay West, are currently under construction. The opening of the first phase of Terminal 4 marks a major milestone in the project, as the fully completed terminal will have a capacity of 462,000 RoRo units, serving the RoRo berths created as part of the ABR Project.

MP2 Project

In July 2020, An Bord Pleanála granted a 15-year planning permission for the MP2 Project, the second of the three SIDs required in order to deliver Masterplan 2040. The associated Foreshore and Dumping at Sea consents for the project were secured in 2022. These permissions will allow the construction of two berths with an overall length of 545 metres for LoLo container ships and two berths with a combined length of 572 metres for RoRo ferries. The project will include the redevelopment of one of the existing oil jetties to provide an additional berth for container ships as and when the demand for fossil fuels reduces in response to national climate change policies.

The first main phase of the MP2 Project will commence in 2024, the construction of new Berth 53 and the eastern half of new Berth 52 at the eastern end of the North Port. This project will be followed by the completion of the western half of new Berth 52, so allowing the infill of a substantial basin area of c. 5.7 hectares to create additional cargo handling area. The new Berths 52 and 53 will be able to handle the largest in class RoRo vessels of up to 240m length, and will have double tier linkspans, so increasing the Port’s operational resiliency. Various enabling works, both land side and marine side, have been undertaken in 2022 and 2023 to allow commencement of this first main project phase in 2024.

Between the ABR Project, which is under construction, and the MP2 Project, Dublin Port Company has now secured all of the planning permissions required for the major development works planned on the northern side of the Port under Masterplan 2040, and our focus has shifted to plan for implementation of the third SID envisaged under the Masterplan – the 3FM project.

3FM Project

In November 2021 the Company launched the 3FM Project, the third and final Masterplan project needed to complete the development of Dublin Port and bring it to its ultimate and final capacity by 2040.

The 3FM Project will deliver c. 20% of the capacity required by 2040 by way of a new LoLo terminal with deep water berthage capable of handling vessels of up to 240m in length, and a new RoRo terminal capable of handling the largest in class RoRo vessels. These vessels will primarily be from Continental Europe where larger vessels deliver greater economy and carbon efficiency. The Project will be delivered on the one-fifth of Dublin Port’s lands that are located on the Poolbeg Peninsula. Aside from existing Port activities, the peninsula already houses the most important concentration of utility and energy facilities in the country, including two power stations, one of the largest sewage works in Europe, the largest incinerator in Ireland, and storage for the National Oil Reserves Agency.

The 3FM Project is at the pre-planning stage and the Company intends to lodge a planning application with An Bord Pleanála in mid-2024. Further to the initial public consultation process in 2021, the Company facilitated a second extensive consultation process in 2023, the feedback from which has led to further adjustments to the project. The Company continues to engage with stakeholders on various aspects of the project prior to finalising and submitting the planning application.

The project has seven main elements:

A new 2.2km road called the Southern Port Access Route (SPAR) to link the north and south port areas, taking Heavy Goods Vehicles (HGVs) from the Poolbeg Peninsula off the existing public road network. It will be located immediately east of Tom Clarke Bridge and north of the R131 and will include a new 190m bridge on the River Liffey, with a 45m lifting section, and also a viaduct along the south bank of the Liffey. The route will accommodate HGVs, active travel users, blue light services, and public transport uses moving to and from the South Port and Poolbeg Peninsula. It will allow the 3FM Project to be rail enabled through rapid road shunting of freight from the South Port, across the Liffey, to rail intermodal facilities in the North Port vicinity. The SPAR will have a direct connection to the Dublin Tunnel via the North Port road system.
Construction of a new container terminal in front of ESB’s Poolbeg Power Station, replacing the existing MTL Terminal near the Sean Moore Road roundabout. This terminal will also be serviced by a new LoLo container yard elsewhere on the Poolbeg Peninsula.
Redevelopment of the existing MTL container terminal to create a new RoRo freight terminal, which will also be serviced by a RoRo freight import yard elsewhere on the Poolbeg Peninsula.
Creation of a 325-metre diameter ship turning circle in front of Pigeon House Harbour.
A Sailing and Rowing campus of 1.9 hectares, known as the ‘Maritime Village’, which will provide for a range of users, including sailing and rowing clubs, Sea Scouts, the Nautical Trust, and local boat owners. It will also include a public plaza, providing much better waterside access than is currently available.
Other Community Facilities including:
- Port Park and Wildflower Meadow of 2.5 hectares
- upgraded existing Coastal Park of 1.6 hectares
- extension to Irishtown Nature Park of 1.1 hectares
- 4.6km of active travel path / greenway for pedestrians and cyclists
- 2.6km of new or upgraded footways on the Poolbeg Peninsula
- contribution to the upgrade of the existing coastal path on the south of the Poolbeg Peninsula.
The proposed active travel/ greenway routing will take pedestrians from North Wall Quay (beside the Point Roundabout) through to Pigeon House Harbour at the heart of the Poolbeg Peninsula. At North Wall Quay, this in turn will link with the 1.4km Liffey Tolka active travel route which the Company plans to commence construction of in 2025. This 1.4km route will link to the 4km Tolka Estuary Greenway that the Company is currently constructing.
Provision of a 0.5-hectare site to accommodate the City’s district heating scheme powered by the Covanta waste to energy plant.

Port Capacity post 2040 and National Ports Policy Review

In 2020 the Company initiated a discussion on how to secure sufficient Port capacity for Ireland’s needs post 2040, with particular reference to the east coast. To facilitate the debate at the time, the Company published a series of seven papers in 2020 as part of the Dublin Port Post 2040 Dialogue to ensure we have early and comprehensive consultation on this nationally important issue. Long-term planning of large infrastructure is very challenging. While forecasting long-term demand for maritime trade is inexact, it is necessary that adequate plans are developed to avoid the risk that economic requirements cannot be met in good time. The challenge is heightened further by the need to cater for large-scale development of our offshore energy sector to meet our climate targets.

Additional port capacity can be achieved either by expansion of existing ports or a new greenfield development or combination of both. Either way, such development must navigate a complex and challenging planning environment that takes considerable time and investment – particularly if Natura 2000 sites are impacted by proposed Port developments. In addition, port development is expensive, requiring large-scale capital both for the Port structures and the necessary transport and other enabling infrastructure.

For this reason, we welcome the review of national port policy currently underway, and the opportunity presented by this review to provide strategic direction post Masterplan 2040 and other current port initiatives. We were pleased to make a submission to the Issues Paper on the Review of the National Ports Policy 2013.

This will be an important policy document shaping Ireland’s approach to port infrastructure development over the coming years, as we face into the challenging task of addressing how we cope with delivering the required capacity to facilitate international trade, whilst delivering on our commitments under the Climate Action and Low Carbon Development (Amendment) Act 2021.

We highlighted a number of key issues facing all Irish ports and particularly Dublin Port. One of these was the importance of getting a timely decision on our 3FM planning application to allow the necessary time to build the required capacity to allow us to deliver on the Irish economy’s long-term Port capacity requirements.

State Lands Post Brexit

Border controls by State Services continue to operate efficiently to the extent that the Company is seeking the return of at least half of the 14.6 hectares of Port lands given over to facilitate the border inspection operations of Customs and the Department of Agriculture. This is a critical challenge if we are to mitigate the already emerging capacity pinch points.

To put this challenge in context, the 14.6 hectares of land allocated to State Services in the run up to Brexit is equivalent to approximately 300,000 RoRo units or 7m gross tonnes per annum in Port capacity terms. This is equivalent to 19% of our current throughput. It is our view that it is now time to reassess land usage and processes to balance the requirement of state services with the pressing needs of Dublin Port for capacity and terminal operators and hauliers for efficiency.

In the long-term, we need to see all of the border control infrastructure consolidated in one area – most likely at the northwest corner of the Port and we will continue to engage with the Office of Public Works and State Services with this objective in mind.

Conclusion

I would like to thank our Chief Executive Officer (CEO), Barry O Connell, his management team and all the staff of Dublin Port Company for their ongoing commitment. The team has continued to deliver on the core objectives of Masterplan 2040 whilst managing the impacts of inflation, particularly construction inflation, managing our revenue line, accelerating technological development of Port operations and ensuring effective integration of climate policy into our forward planning. The leadership team continues to strengthen with several key appointments made during the year. I am also encouraged by the level of constructive engagement that the team have led with all of our stakeholders, both nationally and locally.

I wish to thank my colleagues on the Board for their work over the past year. 2023 has highlighted the importance of having an effective and experienced Board, ensuring strong corporate governance across the organisation. I look forward to continuing to work with them in the coming year as we continue to fulfil our exciting role of stewardship over one of the State’s most important infrastructural assets.

I would also like to thank all our customers and stakeholders for their continued support as we work to deliver on our long-term investment programme whilst continuing day-to-day operations within the Port.

I wish to thank the Minister and the dedicated staff at the Department of Transport for their active engagement with us over the course of 2023.

As we look forward to 2024, the Board is confident that the executive team will build on the Company’s strong financial position and operational performance to continue to deliver on all our strategic objectives.

Jerry Grant, Chairperson

28 March 2024