The west Limerick-based Shannon Foynes Port Company is to receive a €4.3 million cash injection from the Government to help it overcome restructuring costs.
The State-owned company, an amalgamation of the former Limerick-based Shannon Estuary Ports Company and Foynes Port Co, was formed at the end of 2000 because of "inefficiencies arising from overlap and duplication of activities" of the two previous companies, as KPMG said in a consultancy report. The new company, which made a €1.2 million loss in 2000, inherited borrowings and loans of €13.8 million, according to the 2000 accounts.
It has not yet filed an annual return for 2001. On Tuesday, a new 12-member board, which replaced an interim implementation board, will complete a review of the 2001 accounts and will be told of the cash injection sanctioned by the Department of Finance and paid by the Department of the Marine.
Shannon Foynes experienced exceptional costs arising from the merger because of staffing, litigation, a contribution to a bypass at Foynes town and restructuring charges.
Mr Kieran MacSweeney, the company chairman, said an "action and merger" plan had been completed for the Minister of the Marine in recent weeks, which included a recommendation for financial support for exceptional merger costs.
"It is directly in line with the merger announcement made 18 months ago that merger costs would be supported." Because of the 1996 Harbours Act, which effectively guarantees tenure of employment for certain positions, a voluntary redundancy programme had to be negotiated. "Basically it is going to cost to change that."
Uniquely among port companies in the State, the new entity has responsibility for two major ports at Limerick and Foynes, along with jetties in the estuary serving Aughinish Alumina, Tarbert and Moneypoint electricity generating stations, and Shannon where jet fuel is imported. "One of the things the implementation board has not had an opportunity to look at is the potential of the entire estuary," Mr MacSweeney said.
But the provision of new crane and hopper facilities and the completion of the west jetty had "secured Foynes as the prime deep-water port in the country" with the potential to be in the top three ports along with Dublin and Cork.
The Minister for the Marine, Mr Fahey, said in March, 2000, the new company would act as a catalyst for the integrated development of the estuary for industry, tourism and aquaculture. This follows a 25-year period on the estuary when, according to KPMG, "very little has occurred or progressed". Mr MacSweeney said the company now had a commercial mandate to leverage its combined resources to generate a return "in line with typical business expectations".
Since November, the new company has been without a chief executive following the resignation of Mr Colin Hetherington. Mr MacSweeney said: "We are on a fast track at the moment and a person will be appointed by the end of June." The new 12-member board includes three county councillors from Limerick and Kerry, Mr Morgan Leahy of Interlink Express couriers and Mr John Dundon of Mullock & Sons, shipping agents.