Belfast Harbour
Belfast Harbour has published its 2008 Annual Accounts detailing a strong financial performance despite the ongoing global recession. Turnover increased to £32.7m (up 5%) while Operating Profit rose to £14.8m (up 10%). The report also noted that the Harbour has completed or commenced capital projects totaling £60m during the past year.
Net Profit Before Tax stood at just over £20m (down 10% from 2007) reflecting a decline in land related transactions of c.£3.5m as the local property market continued to tighten. Overall trade levels fell by 5% during 2008 in line with falls in both consumer demand and manufacturing output which affected imports and exports through the Harbour. Taxation also rose from £1.9m in 2007 to £5.8m in 2008.
Passenger numbers increased to 1,289,000, up 1.2% following the completion of Stena’s new terminal at VT4 and a record 39 cruise ships with 65,000 passengers and crew called at the Port.
Among the investments undertaken during 2008 was a £10m upgrade of Stormont Wharf to create the island’s longest deep water berth and significantly enhance Belfast Harbour’s cruise ship facilities. Work on a 175,000 sq ft transit shed for the agri-food sector and a £6.5m scheme to increase capacity in the paper sector by 70% was also commenced.
Provisional figures for trading performance during the first half of 2009 showed that the ongoing recession, particularly the decline in local manufacturing activity, continued to reduce trade passing through the Port, down 9% on the comparable period last year. In a move to support port users the Harbour has also frozen increases in port charges for 2009.
Len O’Hagan, Belfast Harbour’s Chairman, said:
“In 2008 the UK’s economy moved into recession for the first time in almost two decades, reducing the level of trade passing through Belfast Harbour. It’s a difficult trading environment which requires tight management controls coupled with flexibility, hence the decision to help port users by capping port charges at 2008 levels.
“Despite the economic downturn, there have still been some very positive developments including an increase in passenger numbers to their highest level in four years. Plus, the diversified nature of the Harbour’s business has meant that even though trade levels have fallen – albeit less than the average decline in the Irish port sector – there has been an improvement in Operating Profits, the best indicator of underlying business performance.
“Although the recession will continue to dampen traffic levels during 2009, we expect the economy to grow in the long-term and increase demand on the Port’s capacity. Ongoing profitability will, therefore, continue to fund a significant programme of new maritime facilities and infrastructure.”
Looking beyond the Harbour’s core shipping related business, Mr. O’Hagan added:
“The ongoing regeneration of the Harbour Estate continues to be an important part of our business model and developments at Titanic Quarter, which Belfast Harbour is co-promoting with Titanic Quarter Ltd, are providing a significant boost to the local construction sector. These include the £97m Titanic Signature Project to which the Harbour is contributing over £20m and major new facilities for the Public Record Office and Belfast Metropolitan College.
“Belfast Harbour is also in the early stages of progressing a complementary 20-acre, mixed use scheme centered round Clarendon Dock known as ‘City Quays’.”
The Annual Report also noted the Harbour’s ongoing Community Programme which included the facilitation of over 100 charitable, community and business events at the Harbour Office, and the development of a schools’ environment project to build upon the Port’s accreditation as the world’s first CarbonNeutral® Harbour Authority.
