Review to urge cut in number of State port companies

A study is expected to highlight conflicts in legislation if the EU Services Directive is implemented.

An independent review of State ports and harbours is expected to recommend that the number of port companies be reduced.

The "high level review" of ports, which has been submitted to the Minister for Communications, Marine and Natural Resources, Mr Ahern, is also expected to highlight conflicts in existing legislation if the EU Services Directive is implemented. And it may recommend lifting restrictions on raising finance, given that ports no longer receive Exchequer funding.

The review was commissioned last year by the Minister's Department in association with the Irish Ports Association, and was carried out by a consortium of consultancy companies.

It is the latest in a series of studies on ports and port transport since the "corporatisation" of the main seaports under the 1996 Harbour Act.

Under that Act, the main seaports are now run by private limited companies, which are totally owned by the State but are required to make a profit annually.

There are eight "corporatised" ports - as in main seaports run by port companies - and Rosslare is owned by CIÉ.

There are a further 16 harbour authorities for regional ports and harbours.

The key recommendations of the review - and the importance of implementing same as part of a "dynamic agenda" - were outlined by Capt Enda Connellan, chief executive of Dublin Port, at the Irish Maritime Law Association's conference last week.

Port companies must be allowed to raise finance elsewhere, he said, given that the companies were now subject to taxation on trading profits, and were also subject to rates under the new Planning Act.

Turnover was down and margins were "thinner", he said, citing Dublin Port as an example. Dublin Port's turnover was down from €53.9 million in 2000 to €51.9 million in 2002, due to reductions offered for unitised trade and the exit of some loss-making services. A 1 .5 per cent increase in tonnage overall showed that business was "quite flat", he said.

The review was conducted in the context of the EU's white paper on European transport policy to 2010, which emphasises the role of rail in European freight transport and identifies the need to balance social costs and economic efficiency.

"If we are to take the white paper seriously, this may mean looking at developing longer and faster sea routes with larger ships directly to other European ports, rather than relying on the British landbridge," Capt Connellan said.

Translation of the EU Services Directive into Irish law will require changes to the existing landlord/tenant legislation in relation to ports, Capt Connellan said.

Otherwise, the consequences would be "disastrous", he told members of the Irish Maritime Law Association in Dublin.

Capt Connellan called for a "healthy debate" on the ports review when it is published.

A spokesman for the Department of the Marine said that the review was with the Minister and would be published in several weeks' time.

Last year, an expert group report on transport access at seaports recommended that a new department of transport take full responsibility for development and implementing policy across "all transport modes". However, the Transport Department as established did not take over responsibility for seaports from the Department of Communications, Marine and Natural Resources.

That report, published by the former marine minister, Mr Frank Fahey, last April identified the essential importance of ports to a peripheral and island economy.

However,it also highlighted the lack of priority given to commercial freight traffic generally within policy framework.