Download - Belfast Harbour

Harbour Office 

Corporation Square 

Belfast BT1 3AL 

+44 28 9055 4422 

(text phone) +44 28 9032 2013 

BSI ISO 18001 

Reg. No. OHS 508824

Annual Report & Accounts 2010

Annual Report & Accounts 2010 

Contents 

page 

1 Chairman’s Statement 04 

2 The Organisation 07 

3 Chief Executive’s Review 14 

4 Belfast Harbour and the Community 19 

5 Corporate Matters 23 

6 Annual Accounts 24 

7 Trade and Shipping Statistics 43 

3

1 Chairman’s Statement 

Leonard J. P. O’Hagan DL 

Chairman 

While the UK’s recession officially ended in 

the last quarter of 2009, economic activity 

remained subdued throughout 2010 across 

Belfast Harbour’s three main markets of 

Northern Ireland, Great Britain and the 

Republic of Ireland. 

£17.4m 

Belfast Harbour Profit 

before Taxation 

4


Performance 

Despite the difficult trading circumstances in the 

wider economy, Belfast Harbour returned an excellent 

financial performance with Sales of £34.7m and Profits 

before Taxation of £17.4m. Net Assets increased to £263m. 

Positive progress was also made with regard to trade 

passing through the Port, with tonnages rising for the 

first time in three years, up by 5.4% to 16.4m tonnes. 

Of particular note was the record 2m tonnes of Grain 

& Animal Feeds handled, reflecting the strong 2010 

performance and competitiveness of Northern Ireland’s 

Agri-Food sector. 

The Harbour’s ability to support this growing sector 

is based upon a long-term capital investment strategy 

which has established Belfast as one of the leading bulk 

cargo ports on the island. This strategy has also sought 

to diversify the Harbour’s activities and provide customers 

across all trade sectors with the most advanced and 

efficient marine facilities in Ireland. In the past decade, 

the Harbour has spent £154m on capital projects, including 

almost £6m in 2010 with further commitments of £51m 

initiated. All expenditure has and will continue to be 

funded entirely from the Harbour’s own revenue streams. 

Competition within the Irish Sea port sector remains 

strong and Belfast Harbour continues to liaise with the 

Northern Ireland Assembly to progress legislation – 

agreed in February 2008 - that will enhance its 

competitiveness. Such legislation will also help the Harbour 

maintain and enhance its capital investment plans for the 

benefit of both the Port and local economy. 

It will also support the diversification of its business 

activities, particularly the exploitation of new opportunities 

in the environmental sector. 

During 2010, for example, an initial £500,000 was invested 

in preliminary works in preparation for a £53m investment 

in a new Terminal to serve the offshore wind energy 

industry. Construction of the facility is due to commence 

in summer 2011. This investment is part of a long-term 

strategy of developing a Marine Energy Park to help 

establish Belfast as a hub for the emerging green economy. 

Irish Sea Developments 

2010 also marked the first full year of operation 

for new, larger vessels on the Belfast – Heysham route 

with continued healthy performance on both the Belfast – 

Liverpool and Belfast – Stranraer routes. A total of 313,000 

freight vehicles were carried by the Port’s Ro-Ro ferry 

operators in 2010, representing an increase of 2% 

on the previous year’s total. 

Stena Line’s plans to develop a new ferry terminal in 

Scotland are proceeding well and the new facility is 

due to open at the mouth of Loch Ryan in autumn 2011. 

This will reduce sailing distances between Belfast and 

Scotland, enhancing service provision. 

Urban Regeneration 

While marine operations (including the provision 

of related logistics space) remain at the core of Belfast 

Harbour’s activities, property projects are an integral part 

of the Harbour business. Such projects within the Harbour 

Estate represent the single largest concentration of urban 

regeneration schemes within Northern Ireland, stimulating 

economic activity, improving the City’s built environment 

and creating a focal point for Foreign Direct Investment. 

Titanic Quarter remains one of Europe’s largest urban 

waterfront schemes and notable progress was made 

during 2010, including the completion of the first 

residential phase, completion of a new headquarters 

for the Public Record Office of Northern Ireland and 

the opening of the development’s first hotel. During 

2010, planning approval was granted for a 660,000 sq ft 

Financial Services Centre, and work continued apace on 

the new Belfast Metropolitan College (planned opening 

September 2011) and the £97m Titanic Belfast visitor 

attraction (planned opening April 2012). 

Master-planning for City Quays, a complementary 

regeneration scheme located on the opposite bank 

of the Victoria Channel was completed and an outline 

planning application was submitted in July 2010. 

Other developments within the Harbour Estate included 

the lodging of planning permission for an additional 

230,000 sq ft of space at Sydenham Business Park, the 

completion of Bombardier’s new hi-tech facility for the 

production of wing and engine nacelles, the opening 

of a new state-of-the-art Audi car showroom by the 

Agnew Group and ongoing work with Invest NI to 

promote the area as a hub for inward investment. 

Community Outreach 

Belfast Harbour’s commitment to support local communities 

through the use of educational, environmental and arts 

projects resulted in the delivery of a number of innovative 

projects such as the Green Teacher of the Year competition, 

Webster’s Waterworks (in conjunction with the Ulster 

Orchestra) and bursaries to support young people’s 

participation in the Lyric Theatre’s Summer Outreach 

Programme. In addition the Harbour Office hosted 

a significant number of community, charity, educational 

and business events. 

Finally thanks are due, as always, to the Board 

of Belfast Harbour - Belfast Harbour Commissioners – 

the management team and all our staff who continue 

to ensure that Belfast Harbour remains the cornerstone 

of Northern Ireland’s economic infrastructure and 

a significant driver of the local economy. 

Leonard J. P. O’Hagan DL 

Chairman 

5


2 The Organisation 

The Board 

The Board of the Belfast Harbour Commissioners 

was first constituted by the Belfast Harbour Act 1847 

as a corporate body with the underlying purpose of 

operating, maintaining and improving the Port of 

Belfast. The powers and duties of the Board are limited 

to those conferred by the various Belfast Harbour Acts 

and Orders 1847-2002, and any relevant public general 

Acts such as the Harbours Act (NI) 1970. In common with 

other Northern Ireland and Great Britain ports similarly 

constituted, the Port of Belfast is generally referred 

to as a ‘Trust Port’. 

The Department for Regional Development (DRD) 

appoints Board Members on the basis of open public 

advertisement. The number of Board Members, 

including the Chairman and Chief Executive Officer, 

may be no less than 10 and no more than 15, with up to 

four Board Members being elected representatives from 

Belfast City Council. 

The management of Belfast Harbour is independent 

of Government and is the responsibility of the Board 

and the Executive Team. The duties of the Board 

Members are akin to those of a company director, 

in particular, to be accountable for the proper exercise 

of the statutory and administrative requirements placed 

upon them. In addition, Board Members are required to:- 

1 Ensure high standards of corporate governance; 

2 Establish the overall strategic direction of the 

Port having regard to the best interests of the Port 

and the local economy following consultation with 

key stakeholders; 

3 Ensure that, in reaching decisions, Government 

policy and relevant guidance provided by the 

sponsor Department are taken into account; 

4 Ensure that, in carrying out their functions, 

due regard is paid to the need to promote equality 

of opportunity. 

Board Committees 

The Board operates a Committee system with the 

objective of maintaining high standards of corporate 

governance and streamlining the work of the Board. 

The Chairman of the Board is Chairman of the 

Commercial Projects and Remuneration Committees. 

All Board Members are also members of at least 

two of the Board’s Committees. 

Belfast Harbour Pension Fund Limited 

The sole function of the Belfast Harbour Pension Fund 

Limited is to act as Trustee to The Belfast Harbour 

Commissioners’ Pension Scheme, operated for the benefit 

of the Board’s employees. The Directors of the Belfast 

Harbour Pension Fund Limited comprise four Board 

Members, including the Chief Executive Officer, as well 

as two Directors nominated by the scheme membership. 

Commercial Projects Committee 

The role of the Commercial Projects Committee 

is to consider major commercial projects. 

Corporate Governance & Audit Committee 

The Corporate Governance & Audit Committee 

is responsible, on behalf of the Board, for: - 

1 Monitoring the integrity of the organisation’s 

financial statements; 

2 Reviewing the organisation’s internal financial 

control and risk management systems; 

3 Monitoring and reviewing the effectiveness 

of the organisation’s internal audit function; 

4 Monitoring and reviewing the external auditors’ 

independence, objectivity and effectiveness. 

Neither the Chairman of the Board nor the Chief 

Executive Officer are members of this Committee, 

but they are entitled to attend meetings. 

Remuneration Committee 

The primary duty of the Remuneration Committee 

is to set policy on remuneration and related matters, 

and to ensure that such remuneration policy facilitates 

the employment and retention of senior personnel. 

The Committee is also responsible for senior 

management appointments. 

Safety, Environmental & Security Committee 

The Safety, Environmental & Security Committee 

advises the Board on all aspects of safety, environment 

and security throughout the Port and Harbour Estate, 

including ongoing obligations under the Port Marine 

Safety Code and the operation of Belfast Harbour Police. 

Property Committee 

The Property Committee considers major land issues not 

related to pure Port operations within the Commissioners’ 

land stewardship role. It is particularly concerned with 

all matters relating to the Titanic Quarter regeneration 

project on land formerly used for shipbuilding and 

occupied by Harland & Wolff. 

7

Board Member Profiles 

Back (left to right) – Noel Brady, Councillor Cathal Mullaghan, Steve Pollard, Councillor David Rodway, 

Middle (left to right) – Peter Curistan, Councillor Danny Lavery, Dr Trefor Campbell CBE, Ross Reed OBE, Peter Dixon, David Russell, 

Front (left to right) – Roy Adair, Ronnie Foreman, Leonard J. P. O’Hagan DL, Mary McMahon. 

Not pictured – Councillor David Browne & Lord Mayor Patrick Convery 

8


Leonard J. P. O’Hagan DL Chairman 

Len O’Hagan was appointed Chairman of Belfast 

Harbour Commissioners in December 2006 and 

has been reappointed for a further term of four years. 

Len has held senior positions in a number of 

international public companies including CEO 

of Fitzwilton Plc, Managing Director of the Jefferson 

Smurfit Group and Chairman of Safeway Ireland. 

Len is currently the Chairman of OHC Corporate 

Advisers Ltd, a business consultancy company, 

Chairman of Rockingham Motor Circuit, Chairman 

of The MAC - The Metropolitan Arts Centre, and a 

Champion for Arts and Business Northern Ireland. 

He is also Vice President of the Ireland-US Council. 

Roy Adair Chief Executive Officer 

Roy Adair was appointed Chief Executive of Belfast 

Harbour Commissioners in 2005. Roy’s career began 

in a number of engineering and manufacturing roles. He 

became the first Chief Executive of the Northern Ireland 

Quality Centre in 1990 before joining electronics group 

DDL Inc in 1994 to run Irlandus Circuits, a company 

which he subsequently bought from the Group in 1999. 

Roy has been involved as a non-executive in a range 

of organisations including the Prince’s Trust, Business 

in the Community, UK Major Ports Group and Invest 

Northern Ireland. He was appointed HRH Prince of 

Wales Ambassador for Corporate Social Responsibility 

in Northern Ireland in May 2007, is President Emeritus of 

the General Stevedoring Council, chairs the Diaspora 

initiative, NI Connections, and is a member of The US 

Economic Envoy’s Working Group. 

Councillor David Browne 

During 2010, Councillor David Browne was an elected 

member of Belfast City Council. He was appointed 

to the Board in July 2005. In addition to being the former 

High Sheriff of Belfast, Councillor Browne is a member 

of several Belfast City Council Committees and Chairman 

of Grove Housing Association and was elected as Deputy 

Lord Mayor of Belfast in 2008. In 2010, David was a 

member of the Corporate Governance & Audit Committee 

and the Safety, Environmental & Security Committee. 

Ronnie Foreman 

Ronnie Foreman was appointed to the Board in January 

2005. Ronnie is Chairman of several organisations, 

including Eaga (Heat) Ireland Plc and SIAC (NI) Ltd. 

He is NI Ambassador for the Haven Charity and also 

self-employed as a Business Development Consultant. 

Ronnie was formerly Chairman of the Statistics Advisory 

Committee, Board Member of ENCOUNTER and owner 

of Alpha Controls Ltd. During 2010, Ronnie was Chair 

of the Safety, Environmental & Security Committee, 

a member of the Commercial Projects Committee 

and a Director of the Belfast Harbour Pension Fund Ltd. 

Mary McMahon 

Mary McMahon is a self-employed social policy 

researcher. She was appointed to the Board in 

November 2002. She is a member of a number of 

voluntary community organisations concerned with 

social justice, poverty, marginalisation and exclusion. 

Mary was appointed as Chair of the Public Health 

Agency in 2009. During 2010, Mary was a member of 

the Safety, Environmental & Security Committee and the 

Corporate Governance & Audit Committee. 

Steve Pollard 

Steve was appointed to the Board in November 

2002. Steve is Managing Director of Janus Training & 

Development Ltd and a Director of Creative Exchange 

Ltd. He is currently employed within the Ulster Business 

School, University of Ulster, where he lectures in 

Management Development. Steve is actively involved 

in a number of community economic development 

initiatives and research in the area of entrepreneurship 

and enterprise development. During 2010, Steve was 

a member of the Commercial Projects Committee and 

the Safety, Environmental and Security Committee. 

Ross Reed OBE 

Ross was appointed to the Board in January 2002. 

Ross is a Chartered Accountant by profession with 

a background in freight transport, warehousing and 

distribution. He is Chairman and Managing Director 

of Interfrigo Ltd and Managing Director of Antrim 

Warehousing & Distribution Services Ltd. Ross is also 

a Director of the Leuven Institute for Ireland and 

Europe. Ross is Chair of the Corporate Governance & 

Audit Committee and a member of the Remuneration 

Committee and the Safety, Environmental 

& Security Committee. 

Councillor David Rodway 

During 2010, Councillor David Rodway was an elected 

member of Belfast City Council. Councillor Rodway, 

an Aquaculture Consultant by profession, was appointed 

to the Board of Belfast Harbour Commissioners in 2007. 

In addition to being a member of a number of Belfast City 

Council Committees, Councillor Rodway is also on the 

Board of Governors of the Belfast Metropolitan College 

and sits on the finance and resources committees. 

He is also part of the Nomadic Trust. In 2010, Councillor 

Rodway was a member of the Safety, Environmental 

& Security Committee and the Property Committee. 

9

Peter Dixon 

Peter Dixon was appointed to the Board in 2008. 

With a career spent within the gas industry, Peter 

is currently Group Chief Executive of Phoenix Energy 

Holdings Limited. He is a past Chairman of the Irish 

Section of IGEM. Peter holds a number of Board positions 

within the Holding Group. He is also Chairman of the 

Energy for Children Charitable Trust, a Board Member 

of Business in the Community, Chairman of Arena 

Network and a Board member of The Prince’s Trust. 

He is also a Lord Taverner and Board member of Men 

against Cancer. During 2010, Peter was a member of 

the Corporate Governance & Audit Committee and the 

Commercial Projects Committee. 

Noel Brady 

Noel Brady was appointed to the Board in 2008. 

Noel is Managing Director of Consult Nb1 Limited, 

a business development consultancy which he founded 

in 2004 that provides executive support services to 

international and national clients. Following an early 

career in the Northern Ireland Civil Service, Noel held 

key senior management positions with CFM Group 

Ltd, ICL and Sx3, providing over 36 years experience 

of working in both the public and private sectors. He is 

an Honorary Fellow and Chairman of the Sales Institute 

of Ireland. Noel was recently appointed as Chairman 

of the Corporate Fund Raising Committee of the Simon 

Community in Northern Ireland. During 2010, Noel was 

a member of the Corporate Governance & Audit 

Committee and the Commercial Projects Committee. 

Councillor Danny Lavery 

During 2010, Councillor Danny Lavery was an elected 

member of Belfast City Council. He was appointed to 

the Board of Belfast Harbour Commissioners in July 2008. 

Councillor Lavery is a member of numerous Council 

Committees including the Development Committee 

and the Strategic Policy & Resources Committee. He is 

Chairman of the Town Planning Committee, a member 

of the Titanic Quarter Working Group, the North Belfast 

Partnership Board and a Board member of the Belfast 

Education & Library Board (BELB). In 2010, Councillor 

Lavery was a member of the Safety, Environmental 

and Security Committee and the Corporate Governance 

and Audit Committee. 

Councillor Cathal Mullaghan 

During 2010, Councillor Mullaghan was an elected 

member of Belfast City Council. He was appointed 

to the Board of Belfast Harbour Commissioners in August 

2010. Councillor Mullaghan is a member of several 

Belfast City Council committees and was the former chair 

of the Health and Environment committee. Councillor 

Mullaghan is also a Non-Executive Director on the Board 

of the Public Health Agency and on the Board of Libraries 

Northern Ireland. He also sits on the Board of Governors 

of Hazelwood Integrated College. In 2010, Councillor 

Mullaghan was a member of the Property Committee 

and Belfast Harbour Pension Board Fund Ltd. 

Dr Trefor Campbell CBE 

Dr Trefor Campbell was appointed to the Board in 2008. 

Trefor was formerly Non Executive Chairman of Moy 

Park Ltd. Trefor is Patron and NI Council Member of the 

Prince’s Trust, Companion of the Chartered Management 

Institute, a Fellow of the Royal Society of Agriculture, 

a Fellow of the Royal Society for Arts & Commerce and 

a Liveryman of the Worshipful Company of Poulters. 

During 2010, Trefor was Chairman of the Belfast 

Harbour Pension Fund Ltd, a member of the Corporate 

Governance & Audit Committee and a member of the 

Property Committee. 

Peter Curistan 

Peter Curistan was appointed to the Board in 2008. 

A chartered accountant by profession, Peter is Chairman 

of Sheridan Group, which he founded in 1989. The Group, 

which specialises in mixed-use development with a 

particular emphasis on leisure and entertainment, has 

property interests in Belfast, Dublin and Bournemouth. 

A former IoD ‘Entrepreneur of the Year’, Peter is a visiting 

Professor at the NI Centre for Entrepreneurship (NICENT) 

in the University of Ulster and holds an honorary 

Doctorate from Queen’s University, Belfast, conferred for 

his contribution to the economic life of Northern Ireland. 

During 2010, Peter was a member of the Commercial 

Projects Committee and the Safety, Environmental and 

Security Committee. 

David Russell 

David was appointed to the Board in January 2002. 

David Russell is a Non-Executive Director of Phoenix 

Natural Gas Limited and Portaferry Regeneration Limited, 

and is an Independent Board Member of the Department 

of Agriculture and Rural Development (DARD). In 2010, 

David was Chair of the Property Committee, a member 

of the Remuneration Committee and the Commercial 

Projects Committee. 

Councillor Patrick Convery 

In 2010, Patrick Convery was is an elected member 

of Belfast City Council. He was appointed to the Board 

of Belfast Harbour Commissioners in July 2008. Councillor 

Convery is a member of numerous Council Committees 

including the Strategic Policy & Resources and 

Development Committees. He is a member of the Belfast 

District Policing Partnership, the North Belfast Partnership 

Board and a Board member of the Belfast Education 

& Library Board (BELB). During 2010, Councillor Convery 

was a member of the Property Committee and a Director 

of the Belfast Harbour Pension Fund Ltd. Councillor 

Convery left the Board in June 2010 to take up the Office 

of Lord Mayor of Belfast. 

10


Commissioners’ Overall Attendance 

Board Meetings Committee Meetings Total Meetings 

Attended 

Percentage of 

Total Meetings 

Attended 

Name Possible Actual Possible Actual Possible Actual % 

Adair, Roy 8 8 18 18 26 26 100 

Brady, Noel 8 8 5 4 13 12 92 

Browne, David 8 7 6 5 14 12 86 

Campbell, Trefor 8 8 11 11 19 19 100 

Convery, Patrick* 4 4 4 4 8 8 100 

Curistan, Peter 8 8 7 4 15 12 80 

Dixon, Peter 8 7 5 4 13 11 85 

Foreman, Ronnie 8 7 14 10 22 17 77 

Lavery, Danny 8 6 6 3 14 9 64 

McMahon, Mary 8 7 6 6 14 13 93 

O’Hagan, Len 8 8 8 8 16 16 100 

Pollard, Steve 8 7 7 5 15 12 80 

Reed, Ross 8 8 7 6 15 14 93 

Rodway, David 8 8 6 5 14 13 93 

Russell, David 8 7 6 5 14 12 86 

Mullaghan, Cathal** 4 4 5 4 9 8 89 

* Councillor Convery’s term ended in July when he took up Office as Lord Mayor of Belfast 

** Councillor Mullaghan replaced Councillor Convery from July 2010 

11

Executive Team 

Roy Adair Chief Executive Officer 

Roy Adair was appointed Chief Executive of Belfast 

Harbour Commissioners in 2005. Roy’s career began 

in a number of engineering and manufacturing roles. 

He became the first Chief Executive of the Northern 

Ireland Quality Centre in 1990 before joining electronics 

group DDL Inc in 1994 to run Irlandus Circuits, 

a company which he subsequently bought from 

the Group in 1999. 

Roy has been involved as a non-executive in a range 

of organisations includes the Prince’s Trust, Business 

in the Community, UK Major Ports Group and Invest 

Northern Ireland. He was appointed HRH Prince of 

Wales Ambassador for Corporate Social Responsibility 

in Northern Ireland in May 2007, is President Emeritus of 

the General Stevedoring Council, chairs the Diaspora 

initiative, NI Connections, and is a member of The US 

Economic Envoy’s Working Group. 

2. Maurice Bullick Finance Director 

A Chartered Accountant by profession, Maurice joined 

the organisation in 2000. Previously Maurice was 

Financial Controller of Cawoods Fuels and had worked 

within Price Waterhouse’s Accountancy Division. 

3. Graeme Johnston Property Director 

Graeme trained both as a Chartered Surveyor and 

Chartered Project Management Surveyor. He joined the 

organisation in 2007 having held a number of senior 

positions in the banking and retail sectors. Previously 

Graeme was Property Director for the Henderson Group 

and was all-Ireland Property Manager for the Ulster Bank. 

4. Patricia Toolan Human Resources Manager 

Patricia joined Belfast Harbour Commissioners in 2002 as 

Human Resources Manager. Prior to her appointment, 

Patricia was Human Resources Manager in Nortel 

Networks NI & Europe and occupied Human Resources 

and Business Planning Roles within the BBC over a 

10-year period. Patricia is a member of the Chartered 

Institute of Personnel Development. 

5. Trevor Anderson Operations Director 

Trevor is an engineer by profession and joined the 

organisation in 2006 from Bombardier Aerospace. Trevor 

had spent a total of 22 years with Bombardier in a 

number of roles including Head of Enterprise Systems for 

Bombardier Aerospace Worldwide based in Montreal, 

Canada. 

6. Joe O’Neill Commercial Director 

Joe joined the organisation in 1997, holding a number 

of roles within the Port of Belfast including Commercial 

Manager and Port Manager before being appointed 

Commercial Director in 2005. Prior to joining the Port, 

Joe was Trading Manager for Undus Ltd and Quality 

Manager for Cantrell and Cochrane Ltd. 

12


13

3 Chief Executive’s Review 

Roy Adair 

Chief Executive 

14


Financial Performance 

The trading financial 

performance for Belfast Harbour 

was very satisfactory with Profit 

before Taxation at £17.4m. 

Trading 

Trading improved during the year with Turnover 

increasing by 5% to £34.7m. Operating Profit was 

£15.0m and Profit before Taxation was £17.4m. 

All Trust Ports have an obligation to earn a commercially 

acceptable rate of return on their assets, which is mainly 

achieved by charges on port and other facilities. 

Capital Expenditure 

All profits net of taxation are reinvested in the 

development of port and estate facilities, for the 

benefit of businesses within the Harbour, and 

the NI economy in general. 

Capital expenditure for 2010 was £5.7m. A further 

£62.8m was committed to capital projects and the 

Titanic Project, but not spent at the 2010 year end. 

Funding of these development projects is derived 

from cash flow. Liquids funds at the end of 2010 

were £60.7m, all of which is committed to future projects. 

Belfast Harbour is a major infrastructure investor; 

and the economic benefits of this investment to NI are 

considerably in excess of the direct economic benefit 

to Belfast Harbour itself. 

Business Environment 

Belfast Harbour has a strong and diversified business 

model including long-term contracts with key customers. 

As such, Belfast Harbour is well placed to manage 

business risks successfully in the current uncertain 

economic outlook. 

Port Business 

Trade 

Buoyed by a record 2m tonnes of Grain and Animal 

Feeds, total tonnes handled at Belfast Harbour in 2010 

reversed the decline of the previous three years. Total 

tonnes handled at the Port in 2010 were 16.4mT, 

an increase of 5.4% on the 2009 figure of 15.7mT. 

Investments in facilities in the Dry Bulk sector by Belfast 

Harbour in recent years consolidated its position as one 

of the island’s leading Dry Bulk ports. Fertiliser imports 

also increased by 32% on the previous year providing 

further evidence of the Port’s strong links to the region’s 

Agri-Food sector. Tonnages in the Aggregates sector 

increased by almost 50% on the previous year with 

record tonnage levels of 891kT. 

Freight Ferries (Ro-Ro) 

Increased activity was recorded in the Freight Ferry 

sector during 2010 pointing to a tentative recovery 

in the local manufacturing sector. Strong performance 

was recorded on the first full year of operation of 

new larger vessels on the Belfast–Heysham route with 

continued healthy performance also witnessed on both 

the Belfast–Liverpool and Belfast–Stranraer routes. A total 

of 313,000 freight vehicles were carried by the Port’s Ro-Ro 

ferry operators in 2010, representing an increase of 2% on 

the previous year’s carryings of 307,000 freight vehicles. 

Containers 

The Container sector also realised marginal growth 

on the previous year with 127,000 containers handled 

at the Port in 2010. This 2% increase on the 125,000 

containers handled in 2009 was driven by a recovery in 

both imports and exports for the manufacturing sector 

which helped offset continued weaknesses in household 

consumption, retail activity and the construction sector. 

2010 saw a new service commence at the Port with 

the introduction of the weekly Samskip / DFDS service 

in December between Belfast and Rotterdam. 

Passengers and Cruise Ships 

Passenger numbers at the Port remained static in 2010 

with 1.3 million passengers using Belfast Harbour-based 

ferry services during the year. 

Stena Line has advised that works to develop a new 

ferry terminal in Scotland are proceeding well with the 

expected opening of the new facility at Old House Point, 

at the mouth of Loch Ryan, in autumn 2011. This will 

result in Stena relocating operations from Stranraer 

and, together with the proposed introduction of new 

modern Ro-Ro vessels, will complement Belfast 

Harbour’s 2008 investment of £37m at VT4, further 

enhancing Stena Line’s product offering on the Belfast 

to Scotland route. 

In 2010, 35 cruise ships visited Belfast Harbour bringing 

a total of 55,000 visitors and crew to the region, further 

evidence of the Port’s role as a tourist gateway to Belfast 

and Northern Ireland. The Port’s recent £10m, 250-metre 

extension to Stormont Wharf has resulted in new cruise 

ships visiting Belfast for the first time in 2010. Notable 

new visitors in 2010 included the TUI vessel, Mein Schiff, 

and the Cunard vessel, Queen Victoria. 

127,000 

Containers handled 

at the Port in 2010 

15

Bulk 

Bulk tonnages handled during 2010 totalled 6.7 million 

tonnes, a year-on-year increase of 12%. In the Dry Bulk 

sector a record tonnage in Grain and Animal Feeds of 

two million tonnes was recorded, up 15% on the previous 

year, with Fertiliser imports also up by 32% to 265kT. 

These increases reaffirm Belfast Harbour’s position as 

the leading Port on the island in the Agri-Business sector. 

Similarly, record tonnage levels were recorded in the 

Aggregates sector with 891kT handled at the Port, 

an increase of 47% on 2009 and reflective of the road 

repair programmes in GB and the development, 

by Port customers, of new markets in Continental Europe. 

Liquid Bulk tonnages remained static in 2010 

at 2.5 million tonnes. 

Finally, the Break Bulk sector, with its strong links to the 

construction sector, experienced a further decline during 

2010 to 271,000 tonnes, 11% lower than 2009. The Timber 

trade continues to be the worst affected area of the Break 

Bulk sector with a 32% decline in tonnage levels in 2010. 

However, growth was recorded in Steel Coil imports of 

41% and Paper imports grew by 13%. 

Port Development 

£5.7m Capital Expenditure was undertaken in 2010 

across a range of Port Development and Expansion 

projects. These included: 

• Completion of a £1m office extension (10,000ft 2 ) for 

Musgrave Retail Partners at the 210,000ft 2 Distribution 

Centre at Dargan Drive which it holds under lease; 

• Purchase of a Liebherr 250 Harbour Mobile Crane to 

further augment the Port’s bulk handling capabilities 

and; 

• Preliminary design and site works in preparation 

for a £53m investment in a new quay and hinterland, 

located at D1 off Airport Road West, to serve the offshore 

wind energy industry. 

Real Estate 

Titanic Quarter 

Over 2,000 people already work in Titanic Quarter 

across 80 different companies and it is anticipated that 

the £7bn-plus investment will create up to 25,000 jobs by 

the end of its 20-year development programme. 

Significant progress was made with construction work 

proceeding well on a number of projects during 2010, 

including: 

• Building work on the three-acre, £97m Titanic Belfast 

visitor facility (funded by Belfast Harbour, Titanic 

Quarter Ltd, Belfast City Council and the Northern 

Ireland Executive) continued apace and is on course 

for opening in April 2012. Planning approval was also 

obtained for enabling roads infrastructure; 

• Phase 1 of the ARC residential development was 

completed and handed over for occupation in 

December 2010; the retail element is also completed 

and interest from prospective tenants is being sought; 

• The Public Record Office of Northern Ireland’s (PRONI) 

headquarters was completed in July 2010; 

• The £44m Belfast Metropolitan College construction 

progressed towards its September 2011 opening and; 

• Titanic Quarter’s first hotel, the 122-bed Premier 

Travel Inn, opened in November 2010. 

A number of planning approvals were secured 

throughout the year for uses such as hotel, residential, 

restaurant, bar, café and office space. These included 

full planning approval for a Financial Services Campus 

(660,000 square feet of office and restaurant space) and 

for a five-star boutique hotel (90-bed with spa facilities) 

for part of the ex-Harland & Wolff Headquarters Building. 

Titanic Quarter’s Paint Hall Film Studio (one of Europe’s 

largest) continued to act as a media hub for TV and film 

production, with HBO’s TV series, Game of Thrones, filmed 

in the Studio throughout 2010. 

City Quays at Belfast Harbour 

City Quays will be a 20-acre waterfront, city centre, 

mixed-use regeneration project occupying the area 

immediately surrounding the Harbour Office. 

The scheme’s masterplanning process was carried 

out in conjunction with world renowned architects, 

Grimshaw, with an extensive stakeholder consultation 

process carried out in 2010. Pre-application discussions 

with Planning Service resulted in an Outline Planning 

Application being lodged in July 2010 for 2.4 million 

square feet of space. 

City Quays will be a commercial office-led project, 

primarily aimed at facilitating foreign direct investors 

(FDI). Taking design cues from Northern Europe and 

encompassing high sustainability standards, associated 

buildings will be constructed to provide support for local 

retail, leisure and residential space. The scheme will be 

a natural extension of Belfast’s city centre, linking it to the 

Harbour’s maritime heritage and Titanic Quarter. 

Work has been ongoing with Government agencies 

to ensure that City Quays complements other proposed 

developments nearby, including Sailortown, Belfast’s 

new Rapid Transit System, Cathedral Quarter, the 

University of Ulster and the proposed new Lagan 

pedestrian/cycle bridge. 

16


International Marketing 

Work continued with Invest NI, Cushman & Wakefield, 

Applied Marketing and Haran & Co. regarding 

awareness and direct marketing aimed at securing 

potential FDI. 

Belfast Harbour’s new interactive website 

www.belfast-harbour.co.uk proved hugely successful 

as a conduit for potential property occupiers and 

overseas investor opportunities. Belfast Harbour’s 

property-related marketing materials were used 

extensively throughout the year and were consistently 

well received by potential FDI targets. 

Abercorn Basin Marina 

Phase 1 of the project is now operational as an all-year 

round facility, with plans progressing for a 250-berth, 

full-service leisure marina to be built in tandem 

with the progression of the landside developments 

in Titanic Quarter. 

Odyssey Trust Company 

A Planning Application is progressing for a mixed 

use development totalling some 1.75 million square feet 

of space including residential, hotels, office, retail, café, 

bars, restaurants, public open space and supporting 

multi-storey car park. 

Estate General 

The Bombardier hi-tech C-Series factory opened during 

2010, producing wing and engine nacelles made from 

lightweight composites. Lease arrangements were also 

put in place for a new R&D facility specialising in the 

lightweight composites sector. Construction commenced 

with a view to opening in late 2011. 

The Agnew Group opened a new Audi car showroom 

on Sydenham Road as the first phase of a potential 

three-phase car sales/service centre. 

Work has been ongoing in relation to IT and 

telecommunications which is viewed by FDI clients 

as being as important, if not more so, than physical 

infrastructure (road, rail, air, etc). The objective is to 

ensure that Belfast Harbour Estate provides open access 

for any IT / telecommunications provider and links to the 

US and Europe via Project Kelvin. 

Sustainability 

Property-related sustainability policies are being 

developed in conjunction with the Carbon Trust. 

Efforts will be aimed at reducing FDI occupational 

costs and achieving high environmental standards. 

Sydenham Business Park 

This is a premier business park location with 1,050,000 

square feet developed. A full Planning Application 

was lodged for a further 230,000 square feet of 

business unit space aimed primarily, but not 

exclusively, at securing FDI. 

6.7m 

Bulk tonnages 

handled during 2010 

17


4 Belfast Harbour and the Community 

Belfast Harbour’s 2010 

Corporate Responsibility 

programme had four main 

dimensions: Environment, 

Community, Education 

and the Arts. 

As part of the programme, 

Belfast Harbour hosted 117 

events, including 51 business 

events, facilitated 67 tours and 

welcomed over 8,300 visitors to 

the Harbour Office. 

Environment & Education 

A core element of Belfast Harbour’s Corporate 

Responsibility strategy is engagement with schools 

throughout Northern Ireland to promote the benefits of 

environmental responsibility and provide information 

on Belfast’s maritime heritage. The primary vehicle 

for engagement with pupils at Key stage 1 and 2 is 

‘Webster the Port Monster’ - Belfast Harbour’s very own 

Environmental Guardian. Webster hosted two projects 

for schools in 2010, his Green Teacher of the Year Awards 

in association with Action Renewables and Webster’s 

WaterWorks in association with the Ulster Orchestra. 

Belfast Harbour also organised a number of biodiversity 

workshops and a resource efficiency workshop for Port 

users and tenants as part of the Harbour’s ongoing 

Environmental Forum Initiative. 

8,300 

Visitors welcomed 

to the Harbour Office 

19

Community 

and the Arts 

Belfast Harbour supported a range of projects and events 

to benefit communities in Belfast and across Northern 

Ireland. These included: 

• Bursaries for young people from disadvantaged 

areas of Belfast to facilitate for their participation in 

the Lyric Theatre’s Summer Outreach Programme. 

The programme ran for five weeks and involved 

schoolchildren aged from 7 - 17 from across Belfast; 

• The USPCA’s ARCC environmental outreach project 

based in Bessbrook, Co Armagh, for adults with 

physical disabilities and learning needs. The 

participants on the project were afforded the 

opportunity to develop their social and interpersonal 

skills through caring for animals and in growing their 

own produce in a vegetable garden and; 

• Support for The Friends of the Grove Association 

celebratory event staged in Grove Park, Belfast, in 

remembrance of the 70th Anniversary of Dunkirk 

and the 65th Anniversary of VE Day. The ‘War Years 

Remembered’ event featured many exhibitions centred 

on memorabilia from WW2 as well as activities and 

attractions for families. 

Other projects and events supported included 

Sailortown’s Annual Community Festival, the Mela 

Festival, Musical Theatre for Youth’s [MT4Uth] Aim 

High Programme bursary scheme, Féile an Phobail, 

Castleward Opera’s Reflections event, and the Belfast 

Musical Society’s Annual Recital and prize-giving. 

Belfast Sea Cadets and the Ocean Youth Trust also 

benefited from Belfast Harbour’s community support, as 

did the Irish Dragon Boat Championships, hosted by The 

Royal North of Ireland Yacht Club, which took place in 

Belfast Lough in July 2010. 

Access to 

Belfast Harbour’s Heritage 

Year on year, Belfast Harbour Office hosts a significant 

number of business, community, charity and educational 

events as part of Belfast Harbour’s commitment to its 

corporate citizenship role. The Harbour Office supported 

and played host to fundraising evenings staged by 

Lagan Legacy and Belfast’s Linen Hall Library. Gala 

Dinners were hosted for NI Hospice, The Royal Benevolent 

Fund, the 40th General Stevedoring Council Annual 

Conference, the Irish Branch of the Institute of Chartered 

Shipbrokers and The Belfast Musical Society. 

A new guide to Belfast Harbour Office was produced in 

response to the interest in the building and its artefacts 

generated by the growing number of visitors attending 

events in the Harbour Office or visiting during the 

European Heritage Weekend in September. During the 

open days, Blue Badge Tour Guides were available to 

provide commentary on the building, its works of art and 

the characters associated with Belfast’s maritime and 

industrial past. 

Webster 

Belfast Harbour’s very own 

Environmental Guardian 

20


21


5 Corporate Matters 

Health & Safety 

Belfast Harbour is committed to the Port Marine Safety 

Code, the provision of a safe working environment and 

the elimination of accidents. During 2010, a successful 

triennial review was conducted on Belfast Harbour’s 

Occupational Health and Safety Systems, which is 

certified to the internationally recognised OHSAS 

18001:2007 standard. It is pleasing to note that Belfast 

Harbour’s reportable accident statistics continue to 

compare very favourably with industry benchmarks. 

Environment 

Belfast Harbour is committed to the prevention 

of pollution and to responsible and sustainable 

environmental management. There were no significant 

environmental incidents during 2010. 

Belfast Harbour is an active participant in a number 

of key strategic environmental forums which include: 

• the Eco-Ports Project which seeks to identify and share 

environmental best practice within the port industry; 

• the Waterframework group which addresses River 

Basin Management; 

• the Coastal and Marine Forum addressing Integrated 

Coastal Zone Management; 

• the Northern Ireland Bio-diversity Group and; 

• the Belfast Strategic Flood Forum. 

Other achievements during 2010: 

• Belfast Harbour attained the Carbon Trust Standard 

and remained the only Port Authority in the world to be 

certified as CarbonNeutral®. 

• Belfast Harbour was the principal supporting partner 

for Business in the Community’s annual ARENA Network 

Environmental benchmarking survey – for the third 

consecutive year Belfast Harbour achieved the top 

status of Platinum. 

• In partnership with the Ulster Wildlife Trust, 

Belfast Harbour completed a biodiversity audit 

of the Harbour Estate. 

People & Equality 

Belfast Harbour strives to achieve a modern peoplecentric 

culture with a strong focus on our employees’ 

engagement, development and wellbeing; seeking 

to attract and retain high performing employees 

and creating an environment where these expectations 

coexist in an enabling culture of appropriately 

skilled and motivated employees. Belfast Harbour 

continues to invest in developing the skills and expertise 

of our people. 

Belfast Harbour is committed to meeting its statutory 

duties and continues to promote good relations 

and equality of opportunity through its Corporate 

Responsibility projects and activities in the workplace. 

In 2010, Belfast Harbour submitted a number of 

completed EQIAs of HR Policies and Procedures 

to the Equality Commission. 

Corporate 

Governance Statement 

Belfast Harbour is committed to high standards of 

Corporate Governance which is under the oversight 

of the Corporate Governance and Audit Committee. 

This oversight covers all Financial Reporting issues, 

the control environment and any governance matters. 

Key responsibilities include: 

• Monitoring the integrity of financial statements; 

• Reviewing internal financial controls and risk 

management systems; 

• Monitoring and reviewing both external and internal 

audit functions and; 

• Reporting to the Board of Belfast Harbour Commissioners. 

CarbonNeutral® 

Belfast Harbour retained its 

Carbon Neutral Status in 2010 

23

6 Annual Accounts 

Statement of Commissioners’ Responsibilities 

The Commissioners are 

responsible for preparing the 

annual report and the financial 

statements in accordance with 

applicable law and regulations. 

Under that law the Commissioners have elected to 

prepare the financial statements in accordance with 

United Kingdom Generally Accepted Accounting Practice 

(United Kingdom Accounting Standards and applicable 

law). The Commissioners must not approve the financial 

statements unless they are satisfied that they give a true 

and fair view of the state of affairs of the Belfast Harbour 

Commissioners and of the profit or loss of the Belfast 

Harbour Commissioners for that period. In preparing 

these financial statements, the Commissioners are 

required to: 

• select suitable accounting policies and then 

apply them consistently; 

• make judgments and accounting estimates 

that are reasonable and prudent; 

• state whether applicable UK Accounting Standards 

have been followed, subject to any material 

departures disclosed and explained in the financial 

statements and; 

• prepare the financial statements on the going 

concern basis unless it is inappropriate to presume 

that the Belfast Harbour Commissioners will continue 

in business. 

The Commissioners are responsible for keeping 

adequate accounting records that are sufficient to 

show and explain the Belfast Harbour Commissioners’ 

transactions and disclose with reasonable accuracy 

at any time the financial position of the Belfast Harbour 

Commissioners and enable them to ensure that the 

financial statements comply with the Harbours Act 

(Northern Ireland) 1970. They are also responsible 

for safeguarding the assets of the Belfast Harbour 

Commissioners and hence for taking reasonable 

steps for the prevention and detection of fraud 

and other irregularities. 

The Commissioners are responsible for the maintenance 

and integrity of the corporate and financial information 

included on the Belfast Harbour Commissioners’ website. 

Legislation in the United Kingdom governing the 

preparation and dissemination of financial statements 

may differ from legislation in other jurisdictions. 

24


Independent Auditors’ Report 

to the Belfast Harbour Commissioners 

We have audited the financial statements of the Belfast 

Harbour Commissioners for the year ended 31 December 

2010 which comprise the Profit and Loss Account, the 

Statement of Total Recognised Gains and Losses, the 

Balance Sheet, the Cash Flow Statement, and the related 

notes 1 to 19. The financial reporting framework that has 

been applied in their preparation is applicable law and 

United Kingdom Accounting Standards (United Kingdom 

Generally Accepted Accounting Practice). 

This report is made solely to the Commissioners, as a 

body, in accordance with the Harbours Act (Northern 

Ireland) 1970. Our audit work has been undertaken so 

that we might state to the Commissioners those matters 

we are required to state to them in an auditors’ report 

and for no other purpose. To the fullest extent permitted 

by law, we do not accept or assume responsibility to 

anyone other than the Commissioners, for our audit work, 

for this report, or for the opinions we have formed. 

Respective responsibilities of commissioners 

and auditors 

As explained more fully in the Commissioners’ 

Responsibilities Statement, the Commissioners are 

responsible for the preparation of the financial 

statements and for being satisfied that they give a true 

and fair view. Our responsibility is to audit and express 

an opinion on the financial statements in accordance 

with applicable law and International Standards on 

Auditing (UK and Ireland). Those standards require us 

to comply with the Auditing Practices Board’s Ethical 

Standards for Auditors. 

Scope of the audit of the financial statements 

An audit involves obtaining evidence about the amounts 

and disclosures in the financial statements sufficient to 

give reasonable assurance that the financial statements 

are free from material misstatement, whether caused by 

fraud or error. This includes an assessment of: whether 

the accounting policies are appropriate to the Belfast 

Harbour Commissioners’ circumstances and have been 

consistently applied and adequately disclosed; the 

reasonableness of significant accounting estimates made 

by the Commissioners; and the overall presentation of 

the financial statements. In addition, we read all the 

financial and non-financial information in the annual 

report to identify material inconsistencies with the 

audited financial statements. If we become aware of any 

apparent material misstatements or inconsistencies we 

consider the implications for our report. 

Opinion on financial statements 

In our opinion the financial statements: 

• give a true and fair view of the state 

of the Belfast Harbour Commissioners’ affairs 

as at 31 December 2010 and of its profit for 

the year then ended; 

• have been properly prepared in accordance with 

United Kingdom Generally Accepted Accounting 

Practice and; 

• have been prepared in accordance 

with the requirements of the Harbours Act 

(Northern Ireland) 1970. 

Opinion on other matters 

In our opinion the information given in the Annual Report 

for the financial year for which the financial statements 

are prepared is consistent with the financial statements. 

Matters on which we are required to report by exception 

We have nothing to report in respect of the following 

matters where we are required to report to you if, 

in our opinion: 

• adequate accounting records have not been kept, 

or returns adequate for our audit have not been 

received from branches not visited by us or; 

• the financial statements are not in agreement 

with the accounting records and returns or; 

• we have not received all the information 

and explanations we require for our audit. 

Deloitte LLP 

Chartered Accountants and Statutory Auditors 

Belfast, United Kingdom 

8th June 2011 

25

Profit and Loss Account 

for the year ended 31 December 2010 

Note 

2010 

£’000 

2009 

£’000 

Turnover 34,663 33,056 

Net operating expenses (19,670) (31,873) 

Operating profit 2 14,993 1,183 

Surplus on land transactions 1,583 2,463 

Profit on ordinary activities before interest 16,576 3,646 

Investment income 4 866 1,467 

Profit on ordinary activities before taxation 17,442 5,113 

Taxation 11 (5,475) 572 

Profit on ordinary activities after taxation and retained profit 

for the year 

14 11,967 5,685 

All activities derive from continuing operations. There is no material difference between the results as reported 

in the Profit and Loss Account and the results on an unmodified historical cost basis. Accordingly, a note of the 

historical cost profits and losses for the period is not given. 

Statement of Total Recognised Gains and Losses (“STRGL”) 


Note 

2010 

£'000 

2009 

£'000 

Profit for the year 11,967 5,685 

Surplus on revaluation of estate property 6 1,959 345 

Actuarial loss on defined benefit pensions 13 (1,066) (1,381) 

Deferred tax credit associated with defined benefit pensions 11 288 387 

Total recognised gains relating to the year 13,148 5,036 

26


Balance Sheet 

at 31 December 2010 

Note 

2010 

£'000 

2009 

£'000 

Fixed assets 

Tangible fixed assets 6 221,883 220,230 

Current assets 

Stocks 415 355 

Debtors: due within one year 8 10,164 9,132 

Investments 9 58,455 52,250 

Cash at bank and in hand 2,243 489 

71,277 62,226 

Current liabilities 

Creditors: due within one year 10 25,833 28,407 

Net current assets 45,444 33,819 

Total assets less current liabilities 267,327 254,049 

Provisions for liabilities and charges 

Deferred taxation 11 342 - 

Other provisions 12 2,065 1,729 

2,407 1,729 

Net assets excluding pension liability 264,920 252,320 

Pension liability 13 (1,728) (2,276) 

Net assets including pension liability 263,192 250,044 

Reserves 14 

Profit & Loss Account 221,811 210,622 

Revaluation Reserve 41,381 39,422 

263,192 250,044 

The financial statements were approved by the Commissioners on 24 May 2011 and signed on their behalf by:- 

L. O’HAGAN - Chairman R. ADAIR - Chief Executive S.R. REED - Commissioner J.M. BULLICK - Finance Director 

27

Cash Flow Statement 


Note 

2010 

£'000 

2009 

£'000 

Net cash inflow from operating activities 16,100 20,198 

Returns on investments and servicing of finance 893 1,805 

Taxation 

Corporation tax paid (5,123) (1,736) 

Capital expenditure and financial investment 15 (3,911) (9,582) 

Net cash flow before management of liquid resources 7,959 10,685 

Management of liquid resources 

Cash placed on short-term deposit (6,205) (10,250) 

Increase in cash 16 1,754 435 

Reconciliation of operating profit to operating cash flows 

Operating profit 14,993 1,183 

Depreciation (net of grant release) 5,881 5,630 

Profit on disposal of fixed assets (48) (9) 

Increase in maintenance dredging provision 602 650 

FRS17 Pension charge 220 181 

Pension contributions in cash (179) (190) 

(Increase)/decrease in stocks (60) 33 

Increase in debtors (1,141) (45) 

(Decrease)/Increase in creditors due within 1 year (4,168) 12,765 

16,100 20,198 

28


Notes to the Financial Statements 


1. Statement of Accounting Policies 

The financial statements have been prepared in 

accordance with applicable United Kingdom Accounting 

Standards. The following material accounting policies 

have been adopted by the Commissioners to determine 

the amounts to be included in respect of items in the 

Balance Sheet and to determine the profit or loss for the 

year. They have all been applied consistently throughout 

the year and the preceding year. 

Basis of preparation 

The financial statements are prepared under the 

historical cost convention as modified by the revaluation 

of estate property. 

The organisation has considerable financial resources, 

together with long-term contracts with a number of 

customers and a presence across different business 

sectors. As a consequence, the Commissioners believe 

that the organisation is well placed to manage its 

business risks successfully despite the current uncertain 

economic outlook. 

After making enquiries, the Commissioners have a 

reasonable expectation that adequate resources are 

available to continue in operational existence for the 

foreseeable future. Accordingly, they continue to adopt 

the going concern basis in preparing the annual report 

and accounts. 

Pension costs 

The Commissioners operate a defined benefit pension 

scheme in the UK, the assets of which are held in a 

separate trustee-administered fund. 

In accordance with FRS17 the operating and financing 

costs of pensions are charged to the profit and loss 

account in the period in which they arise and are 

recognised separately. The cost of benefits accruing 

during the year in respect of current and past service 

is charged against operating profit. The costs of 

past service benefit enhancements, settlements and 

curtailments are also recognised in the period in which 

they arise. The expected return on the scheme assets 

and the interest cost, being the increase in the present 

value of the scheme liabilities arising from the passage 

of time are included in other finance income/(costs) 

within investment income. Changes in the actuarial 

assumptions used to value the Scheme’s past service 

benefit obligations, and the difference between actual 

and expected returns on assets during the year, are both 

recognised in the statement of total recognised gains and 

losses. Pension costs are assessed in accordance with the 

advice of qualified actuaries. 

Pension scheme assets are measured at fair value and 

liabilities are measured on an actuarial basis using 

the projected unit method and discounted at a rate 

equivalent to the current rate of return on a high quality 

corporate bond of equivalent currency and term to the 

scheme liabilities. The actuarial valuations are obtained 

at least triennially and are updated at each balance 

sheet date. The resulting defined benefit asset or liability, 

net of the related deferred tax, is presented separately 

after other net assets on the face of the balance sheet. 

29




(continued) 

Turnover 

This comprises revenue from charges to port users and 

from rents of both operational and estate property. 

Turnover is recognised in the period in which it is earned. 

Shipping income is earned in the period in which it 

falls due i.e. in accordance with the date on which a 

particular ship docks in the Port of Belfast. Rental and 

storage income is recognised for the period January 2010 

to December 2010. To the extent that rental and storage 

income is received in 2010 but relates to 2011 it is treated 

as deferred income. Rental and storage income relating 

to 2010 but not received until 2011 is accrued for in the 

financial statements. 

Stocks 

Stocks are valued at cost with provision for any obsolete 

or defective content. 

Tangible fixed assets - estate property 

Estate property primarily represents land let to tenants 

who are not associated with port operations. This 

property falls within the SSAP 19 definition of investment 

property and so is not depreciated but is revalued 

annually and included in the balance sheet at open 

market value. 

Tangible fixed assets - operational assets 

The cost of operational fixed assets, which excludes 

estate property, comprises the purchase price of assets 

acquired, net of grants and contributions received. 

No provision is made for depreciation of land. Other 

operational fixed assets are depreciated by the straightline 

method according to their effective economic lives 

as follows: 

Years 

Capital dredging 35 to 50 

Dock structures 12 to 50 

Buildings 10 to 40 

Roads 5 to 50 

Plant & machinery 3 to 25 

Current taxation 

Current tax, including UK corporation tax and foreign 

tax, is provided at amounts expected to be paid 

(or recovered) using the tax rates and laws that have 

been enacted or substantively enacted by the balance 

sheet date. 

30





(continued) 

Deferred taxation 

Deferred tax is recognised in respect of all timing 

differences between accounting and taxation profits 

which have originated but not reversed at the balance 

sheet date. Deferred tax is measured at the average tax 

rate expected to apply in the periods in which the timing 

differences are expected to reverse. Capital gains tax is 

not provided for on the surplus arising on the revaluation 

of estate property except where such property is subject 

to a binding agreement for sale that will give rise to 

taxation. Deferred tax is measured on a non-discounted 

basis. 

Deferred tax is recognised in respect of all timing 

differences that have originated but not reversed at the 

balance sheet date where transactions or events that 

result in an obligation to pay more tax in the future or 

a right to pay less tax in the future have occurred at the 

balance sheet date. Timing differences are differences 

between the taxable profits and the results as stated in 

the financial statements that arise from the inclusion of 

gains and losses in tax assessments in periods different 

from those in which they are recognised in the financial 

statements. 

Provisions 

Provisions are recognised when a past event gives rise 

to a present obligation and when a settlement amount 

can be reliably estimated. 

Government grants 

Government grants relating to tangible fixed assets 

are credited against the fixed assets to which they relate 

and are amortised over the expected useful economic 

lives of the assets concerned. 

Investments 

Current asset investments are stated at lower of cost 

and net realisable value. Investments comprise monies 

on short term deposits. 

31


for the year ended 31 December 2010 (continued) 

2. Operating profit 

2010 

£'000 

2009 

£'000 

Operating profit is stated after charging/(crediting) the following: 

Depreciation of tangible fixed assets - owned 7,576 7,343 

Amortisation of government grants on tangible fixed assets (1,695) (1,713) 

5,881 5,630 

Profit on disposal of fixed assets (48) (9) 

Auditors’ remuneration (including expenses) 

Annual audit 

30 29 

Rents from estate property (5,042) (4,956) 

During 2009 Belfast Harbour Commissioners signed a Project Funding and Gift Aid Master Agreement under 

which it is committed to make a donation of £13.8m towards the construction of the Titanic Signature Project. 

The agreement is unconditional and provides an enforceable contractual obligation for Belfast Harbour 

Commissioners. The full liability of £13.8m was recognised in the accounts as at 31 December 2009. 

As at 31 December 2010 the liability is £11.6m. 

3. Employee numbers 

The average number of employees during the year was 125 (2009:130). 

4. Investment income 

Interest receivable 966 1,642 

Other costs (100) (175) 

866 1,467 

32




5. Pilotage 

2010 

£'000 

2009 

£'000 

Income from pilotage (included in turnover) 

Pilotage services 1,178 1,256 

Ships navigating under pilotage exemption certificates 144 128 

1,322 1,384 

Expenditure on provision of pilotage (included in net operating expenses) 

Providing the services of pilots 968 1,056 

Providing, maintaining and operating pilot boats 535 493 

1,503 1,549 

Charge against port operational costs (net operating expenses) (181) (165) 

1,322 1,384 

33



6. Tangible fixed assets 

Cost or 

valuation 

Capital 

Dredging 

£’000 

Dock 

Structures 

£’000 

Land & 

Buildings 

£’000 

Roads 

£’000 

Plant & 

Machinery 

£’000 

Assets in the 

Course of 

Construction 

£’000 

Operational 

Assets 

£’000 

Estate 

Property 

£’000 

Total 

2010 

£’000 

Total 

2009 

£’000 

At 1 January 8,802 115,038 65,688 18,410 32,525 362 240,825 50,178 291,003 281,114 

Reclassified - 138 - - 467 (605) - (157) (157) - 

Revaluation 

adjustment 

- - - - - - - 1,959 1,959 345 

Additions 59 77 405 193 2,185 2,737 5,656 76 5,732 9,646 

Disposals - - - - (800) - (800) - (800) (102) 

At 31 

December 

8,861 115,253 66,093 18,603 34,377 2,494 245,681 52,056 297,737 291,003 

Depreciation 

At 1 January (3,807) (28,243) (10,440) (7,451) (20,832) - (70,773) - (70,773) (65,245) 

Depreciation 

charge 

(134) (2,234) (1,502) (624) (1,388) - (5,882) - (5,882) (5,630) 

Disposals - - - - 801 - 801 - 801 102 

At 31 

December 

(3,941) (30,477) (11,942) (8,075) (21,419) - (75,854) - (75,854) (70,773) 

Balance sheet value 

31 December 

2009 

31 December 

2010 

4,995 86,795 55,248 10,959 11,693 362 170,052 50,178 220,230 

4,920 84,776 54,151 10,528 12,958 2,494 169,827 52,056 221,883 

The amounts above are stated net of grants and contributions. Included in the balance sheet value 

at 31 December 2010 are grants and contributions amounting to £42,220,529 (2009: £43,915,034). 

Part of the Harbour Estate has been classified as estate property on the basis that it is currently substantially let to 

tenants who are not associated with port operations. Estate property, including certain land reclassified as estate 

property in 2001, was valued by the Commissioners at 31 December 2010 at open market value. The surplus arising 

on revaluation has been taken to the property revaluation reserve. Land and buildings includes £10,228,819 

(2009: £9,928,143) for land which is not depreciated. 

34




2010 

£'000 

2009 

£'000 

7. Capital commitments 

Capital expenditure which has been contracted 

for but has not been provided for in the accounts 

Capital expenditure which has been authorised 

by the Commissioners but has not yet been contracted for 

2,078 610 

49,317 12,485 

The above amounts do not take account of any future grants or contributions which may be receivable. 

8. Debtors 

Due within one year: 

Trade debtors 7,852 6,041 

Other debtors 1,851 2,678 

Prepayments and accrued income 461 231 

Deferred tax asset - 182 

10,164 9,132 

Other debtors include an amount owed by the Belfast Harbour Commissioners’ Pension Scheme of £924k 

at 31 December 2010 (2009: £1,178k). 

9. Investments 

Short-term deposits 58,455 52,250 

10. Creditors: due within one year 

Trade creditors 204 469 

Corporation tax 2,509 3,555 

Other taxation and social security 191 192 

Other creditors 21,276 22,634 

Accruals 1,653 1,557 

25,833 28,407 

Other creditors include an amount of £11.6m due to the Titanic Signature Project at 31 December 2010 (2009: £13.8m). 

35



2010 

£'000 

2009 

£'000 

11. Taxation 

(i) Tax on ordinary activities based on profit for the year comprises: 

Current tax 

UK Corporation tax on profit of the period 4,617 4,992 

Adjustment in respect of previous periods (200) (541) 

Total current tax 4,417 4,451 

Deferred tax 

Timing differences, origination and reversal 573 (4,544) 

Adjustment in respect of previous periods (49) (433) 

524 (4,977) 

Other timing differences arising from FRS17 Pension Adjustments 534 (46) 

Total deferred tax charge/(credit) 1,058 (5,023) 

Tax charge/(credit) on profit on ordinary activities 5,475 (572) 

(ii) Reconciliation of current year tax charge/(credit) 

The current tax charge/(credit) for the year is greater/(lower) than the standard rate 

of corporation tax of 28% (2009: 28%) for the reasons set out in the following reconciliation: 

Profit on ordinary activities before tax 17,442 5,113 

Tax on profit on ordinary activities at the standard rate of tax 4,883 1,432 

Factors affecting charge: 

Items not deductible for tax purposes 359 376 

Non-qualifying depreciation net of entitlement to IBAs 560 194 

Chargeable gains (79) (199) 

Capital allowances in excess of depreciation (556) (515) 

FRS17 pension timing difference (521) 46 

Timing difference on charges on income (616) 3,808 

Other short-term timing differences 587 (150) 

Adjustments in respect of previous periods (200) (541) 

Current tax charge for the period 4,417 4,451 

36




11. Taxation (continued) 

(iii) Analysis of deferred tax balance (excluding FRS17 Retirement Benefits) 

2010 

£'000 

2009 

£'000 

Accelerated capital allowances 4,782 4,328 

Other timing differences (4,440) (4,510) 

Total provision/(asset) 342 (182) 

Analysis of movement in provision 

2010 

£'000 

Asset at start of period (182) 

Deferred tax (credit)/charge in profit and loss account for period (excluding FRS17 adjustment) 

Current year – impact of Titanic Signature Project donation 616 

– other timing differences (30) 

– impact of rate change (13) 

573 

Prior year credit (49) 

Provision at end of period 342 

(iv) FRS17 Retirement Benefits 

The Commissioners have adopted FRS17 “Retirement Benefits”. As a result the pension related deferred tax asset 

is now included within the balance sheet classification “Pension liability”. The total movement for the year amounted 

to £246k (2009 – £433k) with a debit to the profit and loss account of £534k (2009 – credit of £46k) and a credit to the 

statement of total recognised gains and losses of £288k (2009 – credit of £387k). 

(v) Deferred tax not provided 

The Commissioners do not have an active capital asset realisation policy and do not provide for deferred tax on 

revalued estate property in the absence of a binding agreement for disposal. In addition, it is considered that no tax 

would be payable in respect of the revaluation reserve in the circumstances that rollover relief were to be available 

in respect of all assets used by the Commissioners in the discharge of their functions as a public authority. 

(vi) Factors that may affect future tax charges 

A 2011 Budget announcement, enacted post year end, has provided for the reduction in the main rate of corporation 

tax from 28% to 26% which will affect the future taxable profits of BHC. The government has also indicated that it 

intends to enact future reductions in the main rate of 1% each year down to 23% by 1 April 2014. 

The Finance Act 2008 provided for the phased withdrawal of industrial building allowances over the period 

to 2011 with no tax relief being available beyond that date. The loss of this tax relief at a time of significant investment 

in the Port of Belfast infrastructure will result in an increase in the tax payable by BHC. 

Future current year corporation tax charges will be lower as a result of BHC making the donation payments 

to Titanic Foundation Limited. Provision for these payments was originally made in the 31 December 2009 results, 

with the anticipated tax relief for payments not yet made reflected as a deferred tax asset. 

37



12. Other provisions 

2010 

£'000 

Maintenance dredging: 

At 1 January 1,729 

Charged to Profit and Loss Account 602 

Amounts applied (266) 

At 31 December 2,065 

The provision for maintenance dredging reflects the Commissioners’ obligation 

to maintain channels and berths within the Port at a minimum depth. 

13. Pension Commitments 

The Commissioners operate a defined benefit pension scheme. 

A full actuarial valuation was carried out at 31 December 2008 by a qualified independent actuary. 

At year end 31/12/2010 

£’000 

At year end 31/12/2009 

£’000 

Change in benefit obligation 

Benefit obligation at beginning of year 32,323 28,684 

Current service cost 220 181 

Interest cost 1,810 1,667 

Plan participants contributions 80 83 

Actuarial (gains)/losses 2,634 3,765 

Benefits paid (2,040) (2,057) 

Benefit obligation at end of year 35,027 32,323 

Analysis of defined benefit obligation 

Plans that are wholly or partly funded 35,027 32,323 

Change in plan assets 

Fair value of plan assets at beginning of year 29,162 27,070 

Expected return on plan assets 1,710 1,492 

Actuarial gains/(losses) 1,568 2,384 

Employer contributions 2,179 190 

Member contributions 80 83 

Benefits paid (2,040) (2,057) 

Fair value of plan assets at end of year 32,659 29,162 

38




13. Pension Commitments (continued) 

At year end 31/12/2010 

£’000 

At year end 31/12/2009 

£’000 

Net deficit in pension scheme (2,368) (3,161) 

Related deferred tax asset 640 885 

Net pension liability (1,728) (2,276) 

Components of pension cost 

Current service cost 220 181 

Interest cost 1,810 1,667 

Expected return on plan assets (1,710) (1,492) 

Total pension cost recognised in net operating expenses 320 356 

Actuarial losses immediately recognised 1,066 1,381 

Total pension cost recognised in the STRGL 1,066 1,381 

Cumulative amount of actuarial losses immediately recognised 2,984 1,918 

Plan Assets 

The weighted-average asset allocations at the year end were as follows: 

Asset Category 

Plan Assets 

At 31/12/2010 

Plan Assets 

At 31/12/2009 

Equities 31% 30% 

Gilts 0% 0% 

Corporate Bonds 41% 54% 

Index-Linked Bonds 18% 11% 

Property 10% 5% 

100% 100% 

To develop the expected long-term rate of return on assets assumption, the Commissioners considered the current 

level of expected returns on risk free investments (primarily government bonds), the historical level of the risk 

premium associated with the other asset classes in which the portfolio is invested and the expectations for future 

returns of each asset class. The expected return for each asset class was then weighted based on the actual asset 

allocation to develop the expected long-term rate of return on assets assumption for the portfolio. This resulted in 

the selection of the 5.9% expected long-term rate of return assumption. 

39




Year to 31/12/2010 

£’000 

Year to 31/12/2009 

£’000 

Actual return on plan assets 3,278 3,876 

Weighted average assumptions used to determine benefit obligations at: 

31/12/2010 31/12/2009 

Discount rate 5.30% 5.75% 

Rate of compensation increase 4.70% 4.60% 

Rate of increase of pensions in payment 3.20% 3.10% 

Rate of increase of pensions in deferment 3.20% 3.10% 

Inflation 3.20% 3.10% 

Weighted average assumptions used to determine net pension cost for year ended: 

Discount rate 5.75% 6.00% 

Expected long-term return on plan assets 5.90% 5.70% 

Rate of compensation increase 4.60% 4.20% 

Rate of increase of pensions in payment 3.10% 2.70% 

Inflation 3.10% 2.70% 

Weighted average life expectancy for mortality tables used to determine benefit obligations at year end 

Male 

Years 

Female 

Years 

Member age 65 (current life expectancy) 17.6 24.0 

Member age 45 (life expectancy at age 65) 19.2 25.9 

40





Five year history 

2010 

£’000 

2009 

£’000 

2008 

£’000 

2007 

£’000 

2006 

£’000 

Benefit obligation at end of year 35,027 32,323 28,684 32,907 32,736 

Fair value of plan assets at end of year 32,659 29,162 27,070 32,573 31,906 

Deficit (2,368) (3,161) (1,614) (334) (830) 

Difference between the actual and expected return on 

scheme assets 

1,568 2,384 (5,866) 550 (735) 

Percentage of scheme assets 5% 8% (22)% 2% (2)% 

Experience gains and (losses) on scheme liabilities 382 (1,256) 81 (676) 361 

Percentage of scheme liabilities 1% (4)% 0% (2)% 1% 

The expected amounts of contributions due to be paid to the Scheme in the year ended 31 December 2011 is £238k 

(consisting of £160k from the Commissioners and £78k from the members). 

14. Reserves 

Property Revaluation 

Reserve 

£’000 

Profit & Loss 

Account 

£’000 

Total 2010 

£’000 

Total 2009 

£’000 

Balance at 1 January 39,422 210,622 250,044 245,008 

Retained profit for the year - 11,967 11,967 5,685 

Surplus on revaluation of estate property 1,959 - 1,959 345 

Actuarial loss (net of deferred tax) - (778) (778) (994) 

At 31 December 41,381 221,811 263,192 250,044 

The profit and loss reserve excluding pension liability is £222,083k (2009: £212,898k). 

41



15. Analysis of cash flows for headings netted in Cash Flow Statement 

2010 

£’000 

2009 

£’000 

Capital expenditure and financial investment: 

Purchase of tangible fixed assets (5,542) (12,053) 

Net realisation from land transactions 1,583 2,463 

Net realisation from other tangible fixed assets 48 8 

(3,911) (9,582) 

16. Reconciliation of net cash flow to movement in net funds 

2010 

£’000 

2009 

£’000 

Increase in cash 1,754 435 

Cash flow from movement in liquid resources 6,205 10,250 

Movement in net funds 7,959 10,685 

Net funds at 1 January 52,739 42,054 

Net funds at 31 December 60,698 52,739 

17. Analysis of changes in net funds 

1 January 2010 

£’000 

Cash Flow 

£’000 

31 December 2010 

£’000 

Cash at bank and in hand 489 1,754 2,243 

Current asset investments 52,250 6,205 58,455 

52,739 7,959 60,698 

18. Related Party Transactions 

The Belfast Harbour Commissioners pay, on behalf of the Belfast Harbour Commissioners’ Pension Scheme, pensions 

payable to pensioner members and benefits payable to members, both of which are reimbursed by the scheme. In 

addition, administrative expenses of £272k (2009: £309k) were borne by the Belfast Harbour Commissioners on behalf of 

the scheme. Amounts owed by the Belfast Harbour Commissioners’ Pension Scheme are disclosed in note 8. 

19. Contingent Liability 

The Commissioners are aware of the pending legal case regarding attribution of the liability for past service deficit in 

the Pilots’ National Pension Fund. The Commissioners await the outcome of the case, which is uncertain, but have formed 

a view that no further liability is required to be reflected in the accounts. 

42


7 Trade and Shipping Statistics (Unaudited) 

Passengers 

2010 Figures 

(000s) 

2009 Annual Report 

(000s) 

Passengers 1,318 1,329 

Passenger Cars 289 284 

Unit Load (000s) (000s) 

Freight Vehicles 313 307 

Containers 127 125 

Bulk Cargo (000s Tonnes) (000s Tonnes) 

Liquid Bulk 2,500 2,521 

Dry Bulk 3,915 3,154 

Break Bulk 271 304 

Import Bulk Commodities (000s Tonnes) (000s Tonnes) 

Petroleum Products 2,180 2,190 

Grain and Feeds 1,994 1,733 

Coal 270 249 

Fertilisers 265 201 

Stones 891 605 

Scrap 278 255 

Timber 82 120 

Shipping 

Gross Tonnage (000s Tonnes) 73,907 72,429 

Number of Arrivals 5,664 5,532 

43

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