Corporate Plan 2017 2021 - Port of Waterford
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Corporate Plan 2017 - 2021
Contents
1 Introduction
2 Structure
3 Vision, Mission and Values
4 Profile
5 Operating Environment
6 Objectives
6.1 Commercial Development
a. Lo-Lo
b. Bulk
c. Other Activity
d. Parking and Rental Income
e. Cruise
6.2 Infrastructure
a. Port Masterplan
b. Port Zone Development
c. North Quays
d. Belview Quays
e. Environmental
6.3 People
a. Health & Safety
b. Employees
c. Community
d. Pension (Defined Benefit)
6.4 Systems
a. IT development
b. Security
c. Environmental/Health & safety
d. Governance and Control
7 Forecasts
Introduction
1
We are delighted to present this update of the Waterford for the next five years
to 2021. We see activity and
Port of Waterford corporate plan covering the profitability growing significantly
5 years to 2021. over this period, delivering
a solid dividend stream. The
ground work and resources
Over the past 12 months we We continue to engage with
will also be put in place for the
have seen a significant step up the industry and represent the
longer term requirements of the
in bulk tonnages through the views of the Regions exporters
Port’s development.
Port together with increased and importers in our efforts to
activity on the break bulk and promote this area and remain
This strategic planning process
project cargo front. Profitability confident that the opportunities
is the fundamental tool used to
in the first 6 months of 2017 here will attract good solutions.
guide our actions and forms the
is very satisfactory and we basis for our weekly, monthly
are engaged in a number Our Board and Management
and annual management and
of strategically important remain deeply conscious
reporting structures. It helps to
projects and processes. Our of our mission - to provide
communicate the potential and
people are enthusiastic and infrastructure and services to
value of the Port, enhancing
committed to the business and enable trade and economic
understanding and brings us
bring a partnership approach development in the Region.
closer to our stakeholders and
to our relationships with our We are a highly efficient port
business partners.
Stakeholders across all aspects perfectly positioned to provide
of our activity. a fast, flexible, personal service
Des Whelan, Chairman.
to the South East Region and
Frank Ronan, Chief Executive.
There is disappointment that further afield through excellent
August 2017.
more progress has not been sea, rail and road connectivity.
made in expanding the Lo-Lo Our plan sets out the objectives
service offering in the Port. and ambitions of the Port of
2 Structure Port of Waterford is the Commercial State Company charged with the management of Waterford Harbour. The State is the sole shareholder in the Company. The Board is comprised of the Chairman and four non- executive Directors (all appointed by the Minister for Transport, Tourism and Sport), one employee elected Director and the Chief Executive. Port of Waterford is a Port of National Significance (Tier 2) within the terms of National Port’s Policy and is a Comprehensive Port on the Ten-T Network. The Directors are: Des Whelan Chairman Frank Ronan Chief Executive Joe Dreelan Louise Grubb John Kehoe Mary Mosse Jack Walsh
3
VISION
Our VISION is to be the preferred cargo gateway
for the South East Region.
MISSION
Our MISSION is to provide infrastructure
and services to enable trade and economic
development in the Region.
OUR VALUES We recognise the impact OUR VALUES have on our behaviours and decision making processes. A common value system, consistently applied, can and will positively contribute to the successful delivery of this plan. HONOURABLE We act with integrity and sincerity. We are honest and fair in all our dealings. BOLD We are driven, agile and fresh in our approach. We are brave and do the right thing for the right reasons. CAN DO We are optimistic, friendly, approachable, open and engaging. OURS This word places us within our community. We are local with pride in our community and our Port. We are supportive and go the extra mile. We are genuine with real regard for our stakeholders, partners, neighbours and our shared environment.
4
The Port handles substantial
vessels with ships drafts of up to
9.0 metres and lengths of up to 200
metres. Belview has excellent inland
connectivity with direct access to
the M9 and active rail connections
into the port.
Belview Port currently handles over
The main centre of operations is at Belview
Port on the River Suir. Belview is 5km
downstream from Waterford City and
upstream from where the Rivers Barrow
and Nore meet the River Suir at Great
Island /Cheekpoint.
(mainly agri-related) together with
another 100k+ tonnes of break bulk
(mainly timber, steel and project
cargoes).
The Port also operates in the
Container/Lo-Lo sector handling 40k
TEU annually.
from car parking and office rental.
These lines of income are a very
important contributor and help
to offset high levels of fixed
cost, particularly around channel
maintenance/dredging.
1 million tonnes of bulk products Non-Port revenues are generated
5
Operating Environment
Brexit represents a challenge to the overall Irish
economy. Port of Waterford does not facilitate any
direct services between the UK and Ireland and will
This plan has been formulated in
the context of the national economy
continuing to recover with growth being
experienced across all sectors.
Recovery in the South East Region has still not fully
reflected the national trend, hence the Region requires
every advantage possible. Port of Waterford will play its
therefore not suffer any operational issues. The potential role in promoting and facilitating economic activity and
impact on the agri/food sector is a concern as this development in the Region.
sector is particularly relevant to the Port of Waterford’s
activities. However the sector’s long-term positive Our Shareholder requires development, profitability and
outlook continues to provide a solid basis for the Port’s a strong dividend stream. The business is fit for purpose
expectations in terms of activity and opportunity. with reasonable profitability, positive cash flows and our
balance sheet in very good shape.
Brexit may also provide a level of opportunity on the Lo-
Lo side of the business with direct services to Europe
providing a viable option against using the UK Land-
bridge route for exports to and imports from mainland
Europe.Objectives
6
Our objectives (and their
associated action plans)
have been identified
and grouped under four
primary headings:
6.1 Commercial development
6.2 Infrastructure
6.3 People
6.4 Systems6.1
Commercial Development
a) Container Traffic (lo-lo)
There is significant demand in the
of adequate berths and depths as
needed by the business into the
future.
‘cruise’ into Waterford Harbour and
we are particularly conscious of
the wider benefits to the Region,
regional economy for additional Lo- in particular to the tourism and
Lo services to and from Waterford c) New Activity hospitality sector in the South East.
for exporters/importers who can
take advantage of the rail services The Port continues to actively We are currently engaged in a
and reduced road transport costs. pursue a range of other study in partnership with Rosslare
This opportunity is becoming opportunities with the intention of Europort and the local authorities
more relevant in the face of Brexit landing a significant ‘other’ activity for Kilkenny, Waterford and
together with an increasing need or activities into the Port. The Wexford to ascertain the potential
to deal with carbon and other drivers in this area include: for cruise development in the
environmental elements in the — Rail opportunity Region. The intention is to clarify
supply chain. — Availability of land bank the economic benefits and make
— Location – out of town, recommendations for sustainable
The Port continues to seek new uncongested and well connected development around investment and
partners to satisfy this regional — Responsive local authorities and funding.
demand and we expect to more national development bodies
than double our container handling
activity levels over the period of this d) Parking and Rental Income
plan, with real progress to be made
in the early years. We continue to develop returns
from car parking on Waterford
b) Bulk quays. This income helps to defray
a significant portion of dredging and
The Port’s Stevedores have pension costs. In addition we will
achieved impressive throughputs concentrate on maximising returns
over recent years and have from the investment in the Marine
ambitious plans to continue this Point office building at Belview Port.
trend. We will continue to work
closely with our partners to enable e) Cruise
and facilitate this development. The
Port Masterplan will be particularly We take a leading role in the
relevant to ensure the availability promotion and management of6.2
Infrastructure
a) Masterplan
The Commercial expansion
previously outlined can and will
be accommodated within the
current port facilities. However
it is likely that growth beyond
in partnership with Kilkenny
County Council on the
development of the Belview
Port Zone. The new Local Area
Plan for the Ferrybank/Belview
area will set out the high level
spatial planning for the zone.
development of Waterford City.
We have appointed agents in
this matter and discussions are
ongoing.
The Trustees of the legacy
defined benefit pension scheme
2021 will place demands on the Work continues in respect of hold a lien over this property.
infrastructure beyond capacity. the structured provision of
services to current and future d) Belview Quays
We are currently engaged in an stakeholders and there is
extensive hydrodynamic study of ongoing interaction with the The Port will continue with the
the Port and Estuary with a view relevant State Agencies. ongoing work of maximising
to understanding the impact of a value created from the existing
range of potential developments. A Port Development Forum facilities. In addition we have
The objective is to explore has been formed comprising instituted a formal program of
and identify possible ways to members from the Local review to identify and action
better manage our dredging/ Authorities for Waterford, any areas where investment is
depth maintenance needs and Kilkenny and Wexford together required in order to maximise the
clarify the impact of a range of with some Commercial useful life of the facilities.
expansion possibilities. Stakeholders to promote the
activities of the Port, particularly e) Environmental
Once this work is completed it with respect to attracting and
will form the basis for a demand supporting industry in the The Port has embarked on
driven Masterplan setting out Region. the process to secure the
the main infrastructural works appropriate environmental
envisaged to facilitate trade in c) North Quays certification by 2019.
the Region for the next 25 years. Opportunities for alternative
We will then embark on the The site has been designated power generation are also being
process of seeking the various as a Strategic Development evaluated and investment in
consents and approvals that will Zone (SDZ) and Waterford energy reduction technologies
be required. City & County Council is the and practices are being
Development Agency. The implemented.
b) Port Zone Development Council has indicated a potential
requirement to buy the site in
Port of Waterford is working order to facilitate the orderly6.3
People
a) Health & Safety
Port of Waterford facilitates
the Port Safety Forum which
As employer the Port:
— Maintains open, regular
communication
and schools around our harbour
every year.
d) Pension (defined benefit)
brings all operators within the — Has detailed succession
Port together to focus on Health planning where required We have the responsibility for
& Safety issues. This forum — Promotes a strong culture dealing with the legacy Defined
employs a structured approach of training and personal Benefit obligations of our
and aims to bring the Group to development predecessor Waterford Harbour
ISO Certification by 2019, if not — Provides clarity around Commissioners. This scheme
earlier. objectives and performance has been closed to new entrants
expectations for many years. A funding plan
We are seeing positive progress agreed with the Pensions Board
with the safety culture and c) Community is being followed and is due to
awareness on the quays. reach conclusion over the next
Our operating environment We operate within the Waterford three to four years.
is complex and potentially Harbour/Estuary Community.
hazardous, hence this progress We engage with all members
is both welcome and essential. of this community and behave
in a way that is consistent with
Within its own direct operation, our values. We recognise the
Port of Waterford will continue special relationship and shared
to develop best-in-class history that the Port has with
practices for our employees and the City of Waterford. The Port
contractors. also recognises its relationship
with, and obligations to the
b) Employees South East Region - taking in
Waterford, Wexford, Kilkenny,
The Port is well served by an Carlow and Tipperary.
experienced and able team of We operate a Corporate Social
committed employees. Responsibility program where
we seek to support activities6.4
Systems
a) IT Development
We are investing in systems
upgrades and new technology
c) Environmental/Health & Safety
As previously noted, we are in the
process of achieving certifications
to ensure we have best in under these headings and we are
class platforms to support our again committed to a continuous
commercial and marine operations. improvement regime and the
This process as it relates to the implementation of systems
container terminal will complement and processes that make a real
the work of the shipping lines and difference on the ground.
ultimately benefit the Region’s
exporters and importers.
d) Governance & Control
b) Security
We are committed to meeting our
We are committed to a continuous governance obligations under the
improvement regime with respect Harbours Acts and within the terms
to security and our obligations of the Code of Practice for the
under International Ships and Port Governance of State Bodies.
Security (ISPS).7
Forecasts
A summary of the plan forecast is set out
below.
The planned increases in activity will drive revenue to almost
€10 million with EBITDA growing to €3.5 million from a current
level of c €1.7 million.
We will spend up to €5 million on capital projects over the
period and deal with our dividend and pension obligations
while building profitability and available resources as will be
required to fund the next stage of the Port’s development.
Solid progress is demonstrated in moving our return on
capital towards a more commercial position while we build
overall shareholder’s funds. No provision is made for the sale
of the North Quays property as the outcome is viewed as too
uncertain at this stage.
Throughput 2017 2018 2019 2020 2021
Containers TEU ‘000 44 61 65 82 88
Bulk Tonnage Tonnes ‘000 1,138 1,215 1,257 1,333 1,361
Financial € € € € €
Revenue €’Million 6.9 7.7 8.1 9.3 9.8
Operating Profit €’Million 1.0 1.4 1.6 2.3 2.7
EBITDA €’Million 1.7 2.2 2.4 3.2 3.5
ROCE €’Million 2.4% 3.4% 3.7% 5.4% 6.0%
Shareholders’ €’Million 31.8 33.1 34.5 36.4 38.3
Funds
Dividend €’Million 0.0 0.1 0.1 0.4 0.7
DB Pension €’Million 1.3 0.3 (0.8) (1.8) (2.0)
Deficit / (Surplus)
Capex €’Million 0.9 0.7 1.5 1.1 0.6
Closing Cash €’Million 3.3 3.6 3.3 3.9 6.03rd Floor, Marine Point, Belview Port,
Waterford X91 W0XW,
Ireland.
Tel: +353 51 874907
Fax: +353 51 874908
Email: info@portofwaterford.com
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