Corporate Plan 2008 - 2012 - Belfast Harbour

Section 7
Key Business Issues
Economic Context
Performance of the Port and its Property interests is
inextricably linked to the performance of the Northern
Ireland (NI), Republic of Ireland (RoI), United Kingdom
and global economies.
The principal drivers for the business remain the
economies of NI and RoI with GDP growth over the
Plan period projected at 3% and 4% respectively.
General economic growth is reflected in anticipated
increases in port traffic particularly in the container and
Roll-on / Roll-off sectors (unit load) where volumes are
expected to continue to grow at twice the rate of the
general economy.
The Port of Belfast has a dedicated ‘Capital Spend
Programme’ to cope with the anticipated growth and such
sums are included within the overall projected spend of
approximately £160 million during the period of the Plan.
Mindful of the lead times associated with the creation
of marine facilities, the Port commissioned cebr
(Centre for Economics and Business Research) to
provide a report on the impact of the Port on the
Northern Ireland economy and to determine future
capacity requirements.
The study’s main findings included:
• The Port of Belfast and the other NI ports are
required to deliver by 2025 an increase in capacity
of between 65% and 109%
• The value of goods transacted through the Port of
Belfast in 2006 was £19.5 billion
• The Belfast Harbour Estate is home to organisations
employing 17,000 people
• 27% of Northern Ireland jobs are at enterprises that
depend on the Port
• 31% of Northern Ireland GVA is generated by
enterprises that depend on the Port
Delivery of the Port’s portion of the increase in
capacity required by 2025 will necessitate further
land reclamation and an estimated investment of
£630 million.
As failure to provide adequate port capacity will
constrain the growth of the economy, it is essential that
those factors which impact upon the NI Trust Ports’
ability to finance such expansion are addressed.
For the Port of Belfast one key factor is the need
to optimise the level of revenue returns from its
Property Portfolio. The Property Division contribution
is a key means of funding the necessary base
infrastructure spend.
Governance Context
Public Corporation status
The most significant regulatory matter confronting
the Port of Belfast (and other Trust Ports) remains the
issue of Public Corporation status. It is widely held that
Public Corporation status, and the consequence that
Trust Ports be treated as part of the Public Expenditure
Regime, is a completely inappropriate construct for
Trust Ports in Northern Ireland.
From the Ports’ position the impact on decision making,
commercial relationships and funding will, in all
probability, result in an undersupply of capacity to the
market with very detrimental effects on the regional
and all-island economies. At the same time the
funding of port projects would become part of overall
governmental spending and consequently reduce the
scope the Northern Ireland Executive has to progress
other vital elements of its Programme for Government.
The Port of Belfast’s position is that removal from
Public Corporation classification is an imperative and
much consideration has been given by the Department
for Regional Development and the Port to identify a
practical solution to the issue.
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