annual review 2019 - cromarty firth
Post on 26-Oct-2021
4 Views
Preview:
TRANSCRIPT
ANNUAL REVIEW 2019 A STRATEGIC NATIONAL ASSET
SMART, SECURE, SUSTAINABLE OPEN TRUST PORT www.pocf.co.uk
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
2
3
2019 was another exceptional year at the Port of Cromarty Firth.
Thanks to the hard work and support of all the Port’s
stakeholder groups, we sustained the growth of recent
years and achieved significant benefits for the region.
Thank you to our staff, customers, communities, local
businesses, local and national politicians and our
regulators – your contribution is invaluable.
In 2019, oil & gas activity continued throughout the Firth,
with major oil rig Inspection, Repair and Maintenance
(IRM) projects helping to secure and safeguard jobs
locally. The Port recorded its busiest cruise season,
providing a huge boost to local businesses and the
Highland economy. The Cromarty Firth expanded its
experience and track record in the burgeoning offshore
wind sector, supporting the construction of the 950MW
Moray East Offshore Wind Farm. Private facilities in the
Firth also enjoyed success: from TechnipFMC at Highland
Deephaven returning to 24-hour production, to major
offshore energy developments utilising Global Energy
Group’s Nigg Energy Park.
We’ve outlined a selection of the stories that made
2019 such a fantastic year for the Port of Cromarty Firth
in our annual review and invite you to learn more about
our activities.
THANKYOU
DANKESCHÖN SPA
SIB
OJU
SP
AX
AR
MERCI
ME
RC
I
ASANTE
KIITOSDANKESCHÖN
GRACIAS
GRACIAS
GRAZIE
GRAZIEOB
RIG
AR
DO
AR
DO
TAPADH LEIBH
WE
LA
’LIN
WELA’LIN
v
4
KEY FACTS 2019
PRIVATE FACILITIES: NIGG ENERGY PARK, NIGG OIL TERMINAL, HIGHLAND DEEPHAVEN AND ADMIRALTY PIER
1 IN 6 JOBSIN THE INVERGORDON TRAVEL TO WORK AREA (HIE)
973ACTS
OF
PILOTAGE
£275M PER ANNUM VALUE TO THE
HIGHLAND ECONOMY
SURPLUS AFTER TAX
TO BE REINVESTED IN THE PORT’S DEVELOPMENT
£2M
VESSEL TONNAGE (ARRIVALS)
NUMBER OF RIGS
SERVICED AND
REPAIRED IN
THE CROMARTY
FIRTH TO DATE
715
TURNOVER
£10.6M £
INVESTED IN RECENT YEARS TO DEVELOP THE PORT’S INFRASTRUCTURE
OVER
£55M
10.1M GT
v
PORT OF CROMARTY FIRTH – TRUST PORT MODEL
5
The Port of Cromarty Firth was established
through an Act of Parliament in 1973. As the
largest port in the Highlands, our priority has
always been the safe navigation of vessels and
people in and out of the Cromarty Firth.
A Trust Port run by an independent Board of Directors,
our mission is to develop, improve and safeguard the
Cromarty Firth for the benefit of all stakeholders. These
include port users, regional businesses, employees,
regional businesses, employees, local communities
and the government.
We have achieved this by balancing economic, social
and environmental sustainability: economic sustainability
through the doubling of revenue in the past six years,
social sustainability through the provision of high-
quality employment opportunities, and environmental
sustainability by ensuring that every activity takes into
account the Firth’s special environment and wildlife.
The Port is not publicly or privately owned and we
receive no regular external funding, meaning we must
generate our own income. As part of the Trust Port
model, 100% of our profit – known as surplus – is
reinvested into the development and enhancement of
the Port. Port-related activity is estimated to generate
approximately £275m per year in economic activity, in
turn boosting local employment, business opportunities
and tax revenues.
We also hold authority over the entirety of the Port’s
assets, such as our quaysides and laydown areas, which
we are tasked with managing and improving for the
benefit our stakeholders, and to leave them in a better
state than when we arrived.
OUR PEOPLEOnce again the Port of Cromarty Firth team grew this year, with a
total of 35 staff employed in 2019. Since 2014 the Port has nearly
doubled its staff headcount as a result of increased levels of activity
and projects supported at our facilities.
As a Trust Port, almost every decision we take is about generating jobs and
opportunities for the communities and businesses based around the Cromarty
Firth and in the wider Highlands. We’re immensely proud that an estimated one
in six local people is employed in activities related to the Port, and our relatively
small team is one of the most productive of any port in the UK.
The driving force behind the Port’s success has been its people. Our motivated
team are extremely passionate about the local area and work tirelessly to see the
region benefit from our value-generating activities. The Port makes significant
investments in staff training and development. This ensures we have the best
team possible to improve, safeguard and develop the Cromarty Firth as a Port,
for the benefit of all stakeholders. As well as investing in our people, the Port has
developed a strong culture in health, safety and security to ensure we create a
safe working environment for our staff to grow and succeed.
MY PORT STORY: HAMISH HARDIE
Born and raised on a working farm just outside of Auldearn, Hamish never had
an interest in pursuing a career in farming. He was instead drawn to the sea and
at 17 years old he started his working career by joining the Merchant Navy. After
eight happy years of navigating the seas and travelling around the world, Hamish
returned to the family home and joined the Cromarty Firth Port Authority as a
Marine Assistant in November 1981, beginning his 39-year tenure.
Tasked with operating the Control Room and manning the Udale pilot boat,
Hamish enjoyed the fast-paced working life at the Port where the duties
involved maintaining navigation buoys and survey equipment, patrolling the
Firth and completing all the essential marine preparations for rig arrivals. Having
successfully held a range of roles during his time at the Port, his duties have
continued to be focused on the shore-based operations at the Invergordon
Service Base. Hamish now holds the position of Facilities Supervisor, where his
skills and expertise earned through years of working in the marine environment
can be maximised. His work ethic and attitude have made him an integral part
of the Port’s Operations team, who have benefitted greatly from his wealth of
experience and knowledge.
Hamish comments: “The variation of my role is what I love the most, every day
at the Port is different and after almost 40 years here, I’m still learning new skills
and challenging myself. I have very fond memories from my time here, chief
amongst them being the commissioning and naming ceremony of the Ocean
Alliance rig and witnessing the first tanker at Nigg Oil Terminal.”
While Hamish is looking forward to travelling to faraway places and seeing old
friends upon his retirement in 2020, he admits that he will miss his colleagues at
the Port and spending his days on the Cromarty Firth.
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
6
7
8
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
PORT MARINE SAFETY CODE
The Port Marine Safety Code (the Code) applies to
all harbour authorities in the UK that have statutory
powers and duties. The Guide to Good Practice on
Port Marine Operations was refreshed in February
2018 in conjunction with the current version of the
Code which was published in 2016.
Port of Cromarty Firth recognises that a robust
Marine Safety Management System (Marine SMS)
requires external and internal checks to ensure that
performance against its policies and procedures is
reviewed. An independent external audit is carried
out annually by the designated person, with the
results provided to the Duty Holder (Board of
Directors). The last external audit confirmed the Port
was deemed compliant across all areas of the Port
Marine Safety Code. Internal audits are also carried
out by the marine management, or the Port’s health
and safety team, where this is deemed necessary
by changes in procedures or when advised by the
designated person.
Channel navigation buoys are maintained by
the Northern Lighthouse Board under contract.
Navigation aid statistics of reliability from 1 Jan 2019
to 31 Dec 2019
Category 1: Target 99.80%, actual 100%
Category 2: Target 99%, actual 99.69%
Category 3: Target 97%, actual 100%
9
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
Oil & Gas Oil & Gas (45% of revenue. Down 9% as a percentage of turnover compared to 2018)
Port of Cromarty Firth continues to be recognised as
a leading European facility for the support of North
Sea oil & gas operations and activity levels remained
stable throughout 2019. Significant oil rig Inspection,
Repair and Maintenance (IRM) projects were completed,
utilising the Firth’s first-class facilities and the expertise
of local supply chain companies. Offshore project and
engineering contractor, Semco Maritime, extended its
contract for the Queens Dock facility at the Invergordon
Service Base, having recorded its most successful year of
rig projects in 2018. TechnipFMC at Highland Deephaven
went back to 24-hour production and recruited over
100 new staff, while Global Energy Group at Nigg
Energy Park won a multi-million-pound contract for
the refurbishment of the Well-Safe Guardian plug and
abandonment unit.
A relatively low average oil price was recorded
throughout the year, which traded at an average
of $64/barrel. Within the mature North Sea basin,
a number of oil majors such as Chevron and
ConocoPhillips, are selling their offshore assets to
smaller operators, who have entered the market to
exploit the remaining available reserves. This trend is
in line with the North Sea’s managed decline and the
UK’s energy transition, however, the industry remains
an important employer to Scotland and within the
Cromarty Firth area.
OUR SECTORS
Cruise Cruise (26% of revenue. Up 5% as a percentage of turnover compared to 2018)
The Port of Cromarty Firth welcomed 104 ships and
over 167,000 passengers in 2019, representing the
busiest season recorded since we first welcomed cruise
ships into the Cromarty Firth over 40 years ago. The
season brought with it some of the world’s largest
cruise ships, taking advantage of the Firth’s deep water
and the incredible attractions our region has to offer.
This activity has boosted the Highland economy by
a massive £18m with many businesses in the region
reaping the benefits from cruise passenger visits. These
included popular tourist attractions such as Cawdor
Castle, Jacobite Cruises and Glenmorangie Distillery,
as well as local visitor attractions such as Invergordon
Museum and EcoVentures in Cromarty.
10
The global cruise industry continued to expand in
2019, with a record 24 new cruise ships undertaking
their maiden voyage – ranging from small luxury
vessels to megaships. The Highlands have become
a popular destination in Northern Europe and the
industry plays a crucial role in supporting local
employment, particularly in the hospitality and
tourism sectors.
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
11
Renewables Renewables (10% of revenue. Up 3% as a percentage of turnover compared to 2018)
Scotland continues to be at the forefront of renewable
energy developments. Significant increases have been
made in electricity generation over recent years from
these sustainable sources, which have increased more
than three-fold from 8,003GWh in 2007 to 30,521GWh
in 2019. This equates to approximately 90% of Scotland’s
electricity consumption – a fantastic achievement.
Offshore wind is now the cheapest form of large-scale
electricity generation and both the Scottish and UK
Governments have committed to investing further into
this growing industry.
In 2019, installation of the 588MW Beatrice Offshore
Wind Farm was completed and work began on the
construction of the 950MW Moray East Offshore Wind
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
Farm. The Port of Cromarty Firth and local supply chain
businesses have developed a valuable track record in the
industry and will play a vital role in supporting the Moray
East project, which shall utilise our new Phase 4 expansion.
Crown Estate Scotland has plans in place to launch
the next leasing round for Scottish offshore wind
developments, with up to 10GW of capacity up for grabs.
The Port is in a strong position to capitalise on the future
pipeline of opportunities and is working proactively to
ensure utilisation of the Cromarty Firth is maximised.
HMS PRINCE OF WALES
Given the Port of Cromarty Firth’s rich
historic naval connection, we were delighted
to welcome the latest addition to the Royal
Navy’s fleet, HMS Prince of Wales and its
crew. Cromarty Firth was the £3bn aircraft
carrier’s first port of call after leaving Rosyth
Dockyard, where the 65,000-tonne vessel
was built, prior to undergoing sea trials in the
North Sea and outer Moray Firth.
Upon its arrival in the Cromarty Firth, local residents
flocked to the Port to enjoy a full view of the vessel
and the 600-strong Royal Navy crew on board.
The visit to Invergordon also provided some of the
sailors the opportunity to venture inland and even
bag a Munro by ascending Ben Wyvis during some
well-earned down time.
The Port is one of only a handful of harbours in the whole
of the UK able to accommodate a vessel of such size and
stature. In total, HMS Prince of Wales called into the Firth
on three occasions to refuel and resupply.
Praising their experience at the Port, Martyn Mayger,
Lieutenant Commander of HMS Prince of Wales, said:
“Sincerest thanks for your support to HMS Prince of Wales
as we progressed through inaugural trials. Since the first
day we touched base with you, the Port of Cromarty Firth
has been pragmatic, attentive and totally supportive in
helping us achieve our objectives.”
The Port would like to extend warm thanks to everyone
locally for accommodating the ship and its crew, and for
making them feel welcome.
12
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
13
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
CHAIR’S STATEMENTTO ACCOUNTS 2019
It is with great satisfaction that I
can report on behalf of the Board
that 2019 was another outstanding
year for the Port of Cromarty
Firth, in which the extraordinary
growth of recent years was
sustained. Turnover of £10.6m was
recorded, with a surplus (profit
after tax) figure of £2m achieved.
This excellent performance will
allow further reinvestment and
development of the Port for the
benefit of all our stakeholders.
The Port’s success in 2019 is
principally due to the hard work,
determination and commitment of
its staff and the Board would like to
highlight their thanks and gratitude
for the staff’s continuing support.
The Port continues to invest heavily
in skills and training, demonstrating
a strong dedication to employee
development and growth. This
proactive commitment to staff
means we have a highly efficient
and productive team, contributing
significantly to the business’s
excellent performance.
I would also personally like to
give thanks to Richard Ballantyne,
previous Chair of the Board, who
stepped down in December 2019
after a successful year at the helm.
Richard has been a highly valued
Board member since January
2014. His significant knowledge
and experience within the oil
& gas sector helped secure a
number of opportunities for our
Trust Port, resulting in increased
regional benefits and development.
Additionally, thanks must be given
to Alan Cook, who also stepped
down from the Board in December
2019, having provided the Port
with exceptional marine expertise
since his appointment in 2014. We
wish them both well in their future
ventures.
The Port’s growth and role as
a national strategic asset has
resulted in an increasing regional
development responsibility and we
are very proud of the employment
and economic benefits which
are supported by our business.
The diversification strategy
The Port’s success in 2019 is principally due to
the hard work, determination and commitment
of its staff and the Board would like to highlight
their thanks and gratitude for the staff’s
continuing support.
14
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
implemented by the Port’s senior
management over recent years is
delivering substantial growth in
the Port’s business and benefitting
the economic wellbeing of the
region. This was recognised at the
prestigious Institute of Directors
2019 Awards, where the Port’s
Chief Executive, Bob Buskie, was
named the Highlands & Islands
Regional Director of the Year – a
great accolade reflecting his strong
leadership.
The Cromarty Firth has been
engaged in North Sea oil & gas
projects for over 40 years and
the sector continues to be a core
aspect of the Port’s activity. A
series of infrastructure investments
and major developments at the
Invergordon Service Base has
attracted offshore wind projects
and additional cruise liners to the
Port. The diversification into these
burgeoning sectors complements
the expertise of local supply
chain companies and will serve to
ensure the long-term economic
sustainability of the Port.
As a Trust Port, we are focused on
sustainably developing, improving
and safeguarding the Cromarty
Firth for the benefit of all its diverse
stakeholder groups. These groups
include our staff and customers,
businesses throughout the region,
local communities and local and
national government. In 2019,
significant stakeholder engagement
was completed with these groups
to ensure the Port understands
their individual requirements and
help us align our activities to ensure
an appropriate balance of benefits.
Our annual public meeting was
well attended by local stakeholders
and hosted at Invergordon Golf
Club. Quarterly meetings with local
Community Councils, port users
and staff continued throughout the
year, as well as the publication of
the Port newsletters. We continued
to work closely with Highlands
and Islands Enterprise (HIE), The
Highland Council and VisitScotland,
to ensure the benefits we generate
for our local communities and
businesses throughout the
Highlands are maximised.
The Cromarty Firth is a very
special marine environment
and, as guardians of the Firth,
we must ensure the area – and
its inhabitants – are protected
for future generations. We are
fortunate that the Port’s facilities
host a wide range of birds and
marine mammals, such as terns,
eiders, seals and dolphins, whose
protection we take very seriously.
Once again, we organised the Great
Big Firth Beach Clean, as part of
the Great British Beach Clean, with
over 200 local school pupils, and
helped inform them on the dangers
of litter in the marine environment.
Sustainability is at the heart of
all the Port’s activities: balancing
economic drivers, the needs
of people and respecting the
sensitivities of the environment to
create a Port that everyone can feel
a part of and be proud of.
Roger Eddie
Chair of the Board of Directors
15
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
CHIEF EXECUTIVE’S STATEMENTTO ACCOUNTS 2019
The Port of Cromarty Firth
has developed a strong health
& safety culture and remains
committed to not only safeguarding
the individuals who work at the
Port, but also protecting the
sensitive environment of the
Cromarty Firth. In 2019, there were
no major first aid or environmental
incidents across 75,519 labour
hours. This fantastic achievement is
testament to our ongoing journey
of continuous improvement in
Health, Safety, Environment and
Quality (HSEQ). Once again, the
Port passed its health & safety
audit with flying colours and
received recertification for the
ISO awards 14001 – Environmental
Management, 9001 – Quality
Management System and 45001
– Occupational Health and Safety.
The Port’s performance and
success was also recognised by
Maritime UK, after being presented
with the UK National Sustainability
Award for our work in balancing
economic, social and environmental
sustainability for all of the Port’s
stakeholders.
In the face of sectoral uncertainty
across several of the Port’s core
markets, I am pleased to report
that our business performed well
throughout 2019 and once again
surpassed our forecasted targets.
The relatively low North Sea oil
price brought significant challenges
to the industry and consequently
impacted on the level of activity
taking place in the Firth. We saw
an increase in the average number
of rigs which were anchored
in our sheltered deepwater,
and TechnipFMC at Highland
Deephaven went on a recruitment
drive as 24-hour production
resumed at the spoolbase.
Unfortunately, a reduction in oil rig
Inspection, Repair and Maintenance
(IRM) work impacted other
companies based in the Firth.
2019 was a record-breaking cruise
season at the Port, in which we
welcomed 104 ships and over
167,000 passengers, contributing
an estimated £18m to the regional
economy. With the Port’s help, a
number of local visitor attractions
are now reaping the benefits from
cruise passenger visits, such as
Tarbat Discovery Centre and the
Invergordon Museum. The cruise
sector has been a tremendous
success story for the region, and
the record season represented
26% of the Port’s income in 2019.
The Port has been working with
The Highland Council, Invergordon
Community Council and the
Invergordon Development Trust
alongside local tour operators and
Police Scotland to identify solutions
to the traffic management issues
faced in the town. These have
been very positive and proactive
workshops, and a range of potential
solutions have been identified.
With the installation of the Beatrice
Offshore Wind Farm complete,
construction of the £31m new
berth and laydown area (Phase 4)
commenced at the beginning of
the year. This is in preparation to
host the turbine components for
EDP Renewables’ (EDPR) 950MW
Moray East Offshore Wind Farm,
which is a substantial project for
the entire Cromarty Firth and, when
complete, will be one of the largest
constructed offshore wind farms
in the world. The Port organised a
‘Meet the Buyer’ event with EDPR
and partners from the Moray East
project to enable local companies
to meet key purchasing decision
makers and maximise opportunities
for local businesses from this
£2.6bn project.
The completion of the latest
expansion will bring the total
investment in the Port’s facilities to
over £55m in recent years, targeted
towards securing further Scottish
offshore wind projects and creating
a pipeline of opportunities and
jobs for local people well into the
future. Whilst supported by funding
from both HIE and the European
Regional Development Fund
(ERDF), the majority of this £55m
investment has been financed
from the Port’s own funds through
reinvestment of our operating
surplus.
16
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
Recognising the importance of
the renewable energy sector and
expertise of local organisations
situated in the Firth, the Port has
taken a leading role with Highlands
& Island Enterprise (HIE) and Global
Energy Group to develop a cluster
of excellence in deepwater offshore
wind energy. The cluster, named
DeepWind, now features over 400
members drawn from industry,
academia and the public sector. The
ambition of DeepWind is to attract
more offshore wind projects to the
region, bringing investment and
long-term sustainable employment
with them.
Given the Port’s historic naval
connection, we were delighted to
welcome the latest addition to the
Royal Navy’s fleet – HMS Prince
of Wales. The Port is one of only a
handful of harbours in the whole
of the UK able to accommodate
the 65,000-tonne aircraft carrier.
HMS Prince of Wales called into
the Firth three times in 2019 in
order to refuel and resupply,
while completing sea trials in the
formidable North Sea under the
ownership of the Aircraft Carrier
Alliance (ACA).
In 2019 the Port awarded £36,000
to projects throughout the Firth as
part of our Community Sponsorship
Programme – a 24% increase on
2018’s total. Recipients of funding
included Ross Sutherland RFC,
Cromarty Community Care and
Community Spirit Invergordon.
Towards the end of the year we
were also excited to launch our new
£600,000 custom-built pilot boat,
Dalmore, which will safely navigate
vessels and their crews entering
and exiting the Firth.
In December, Roger Eddie took
over as Chair of the Board,
replacing Richard Ballantyne.
Roger previously served as Vice
Chair and has an extensive 35
years’ experience as a specialist
business banker, mainly spent in
the Highlands & Islands. He has
been an integral part of our Board
since 2013 and his knowledge and
experience will stand us in good
stead as we look to build on the
Port’s recent successes. I would like
to thank Richard Ballantyne and
Alan Cook who stepped down from
the Board this year, and welcome
Zeina Melville and Graham Peach
who have joined as directors.
The accomplishments enjoyed in
2019 could not have been achieved
without the professional and
dedicated team who work at the
Port. We are extremely fortunate
to have such passionate and driven
staff, who work tirelessly to bring
prosperity to the Port and make
significant contributions to the local
and regional economy.
Bob Buskie
Chief Executive
The Port’s performance and success was also
recognised by Maritime UK, after being presented
with the UK National Sustainability Award for our
work in balancing economic, social and environmental
sustainability for all of the Port’s stakeholders.
17
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
18
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Other income from investments
Interest receivable and similar income
Interest payable and similar expenses
Other finance costs
Gain on disposal of fixed asset investment
Profit before taxation
Tax on surplus
Surplus for the financial year
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
Tax relating to other comprehensive income
Total comprehensive income for the year
The surplus and loss account has been prepared on the basis that all operations are continuing operations.
2019
£
10,604,417
(5,723,236)
4,881,181
(2,323,847)
2,557,334
250,000
13,327
(219,380)
(74,000)
-
2,527,281
(530,690)
1,996,591
(12,000)
2,040
1,986,631
2018
£
11,378,815
(5,373,290)
6,005,525
(2,530,027)
3,475,498
150,000
22,156
(140,658)
(72,000)
709,538
4,144,534
(748,859)
3,395,675
591,000
(100,470)
3,886,205
19
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
2020
BALANCE SHEET AS AT 31 DECEMBER 2019
Fixed assets Tangible assets
Investments
Current assets Stocks
Debtors
Cash at bank and in hand
Creditors: amounts falling
due within one year
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
Provisions for liabilities
Net assets
Capital and reserves Profit and loss reserves
£
10,036
4,245,726
3,206,677
7,462,439
(14,292,565)
2019 £
54,394,210
50
54,394,260
(6,830,126)
47,564,134
(15,262,197)
(2,713,245)
29,588,692
29,588,692
£
10,160
1,654,245
12,642,070
14,306,475
(4,011,364)
2018 £
32,672,634
50
32,672,684
10,295,111
42,967,795
(13,109,254)
(2,256,480)
27,602,061
27,602,061
The financial statements were approved by the Board
and authorised for issue on 25th September 2020
and are signed on its behalf by:
Roger Eddie Chair of the Board of Directors
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
2121
FOR THE YEAR ENDED 31 DECEMBER 2019
Cash flows from operating activities
Cash generated from operations
Interest paid
Income taxes paid
Net cash inflow from operating activities
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Proceeds on disposal of fixed asset investments
Repayment of loan notes
Interest received
Dividends received
Net cash used in investing activities
Financing activities Proceeds from government grants Proceeds of new bank loans Repayment of bank loans
Net cash generated from/(used in) financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
STATEMENT OF CASH FLOWS
For a full version of the accounts, please email port@pocf.co.uk or visit www.pocf.co.uk
£
(22,344,996)
–
–
–
(60,673)
250,000
2,846,480
8,081,691
(527,828)
2019 £
3,239,412
(219,380)
(700,099)
2,319,933
(22,155,669)
10,400,343
(9,435,393)
12,642,070
3,206,677
£
(2,772,173)
101,000
710,000
500,000
(49,844)
150,000
75,266
–
(86,830)
2018 £
5,667,323
(140,658)
(794,490)
4,732,175
(1,361,017)
(11,564)
3,359,594
9,282,476
12,642,070
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
BOARD ATTENDANCE REPORT
The members who served in the year were:
Richard Ballantyne, Chair (appointed 1 Jan 2014, Vice Chair from 1 Jan 2016, Chair from 1 Jan 2019 – resigned 31 Dec 2019)
Roger Eddie (appointed 1 Jan 2013, Vice Chair from 1 Jan 2019, Chair from 1 Jan 2020)
Robert Buskie (appointed 28 Jun 2013)
Angus McMaster (appointed 1 Jan 2014)
Alan Cook (appointed 1 Feb 2014 – resigned 31 Dec 2019)
Hugh Mitchell (appointed 1 Jan 2018, Vice Chair from 1 Jan 2020)
Stewart Ralston (appointed 1 Jan 2018)
Rhona Harper (appointed 1 Jan 2019)
Secretary: David Bell
Attendance at Board meetings in 2019:
R Ballantyne, Chair 4/6
R Eddie 6/6
R Buskie 6/6
A McMaster 6/6
A Cook 6/6
H Mitchell 6/6
S Ralston 6/6
R Harper 5/6
Auditors: Johnston Carmichael LLP, Inverness
Bankers: The Royal Bank of Scotland, Dingwall
Solicitors: Burness Paull LLP, Aberdeen
Audit, Risk & Performance Management Committee Members:A McMaster (Chair), A Cook and S Ralston
Remuneration Committee Members:H Mitchell (Chair), R Harper and S Ralston
22
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
23
24
25
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
SUSTAINABILITY REPORTThe Port of Cromarty Firth is driven to
develop, improve and safeguard the Cromarty
Firth for the benefit of all of its stakeholders.
We achieve this by balancing economic, social
and environmental sustainability – contributing
in a positive way to the economy, local people
and the Firth’s special marine environment.
Such a focus on these thee pillars of
sustainability saw the Port achieve success at
the inaugural Maritime UK awards, scooping
the Sustainability Award.
The Port has successfully put in place a robust
diversification strategy, opening up revenue channels
from key growth sectors such as renewables and
cruise. As a result, our turnover and surplus have
doubled over the past six years and allowed us
to open up new facilities and provide greater
opportunities for local companies. Our improved
financial performance has also allowed us to make
further investments in the Port’s infrastructure to
expand our capacity and capabilities.
Large engineering companies, such as Global
Energy Group and Semco Maritime, capitalise on
the Port’s world-class facilities and attract major
projects and employment to the region. We operate
an ‘Open Port’ philosophy, which allows businesses
the opportunity to utilise the Cromarty Firth’s deep
sheltered waters and safely work alongside the
Port’s other tenants.
Recognising the importance of the renewable energy
sector and expertise of organisations situated in the
Firth, the Port has worked collaboratively with Global
Energy Group and Highlands & Islands Enterprise
(HIE) to develop a cluster of excellence in deepwater
offshore wind energy. The cluster – named
DeepWind – will look to secure more projects to the
region, bringing further investment and long-term
sustainable employment.
The number of staff directly employed by the Port
increased again in 2019, with significant investments
made in staff training and development. Through our
work with local schools and Jobcentre Plus, we are
helping to educate and support the future workforce.
Thanks to the £31m quayside expansion and multi-
million-pound contract award from Moray East
Offshore Wind Farm, the Port continues to provide a
sustainable future for local supply chain companies
and employees.
The Port continued to support community groups,
clubs and other local good causes through the
Community Sponsorship Programme, with almost
£36,000 awarded in 2019. Work has also continued
with local businesses to help them understand,
access and promote themselves to the burgeoning
cruise and renewable sectors.
The Port ensures that all its activities undertaken in
the Firth take into consideration the sensitive and
protected surrounding environment. We work in
harmony with the wildlife that lives or visits the Firth
and strict measures have been implemented to ensure
they are safeguarded. For the fourth year running, we
organised the Great Big Firth Beach Clean, as part of
the Marine Conservation Society’s Great British Beach
Clean. The popular event, which helps to keep our
coastline pristine, involved over 200 pupils from five
local schools, as well help from teachers, Port staff and
other volunteers.
The Port are actively investigating measures to record
and reduce the carbon footprint from our operations.
This will ensure we are contributing to a sustainable
future and the net zero emissions targets set by the
Scottish Government.
Once again, the Port passed its health & safety audit
with flying colours and received certification in ISO
14001 (Environmental Management), ISO 9001 (Quality
Management System) and ISO 45001 (Occupational
Health and Safety).
Economic Sustainability
Social Sustainability
Environmental Sustainability
We outline here some of the activities undertaken
that helped us achieve this accolade.
v
COMMUNITY SPONSORSHIP PROGRAMME
Port of Cromarty Firth’s Community
Sponsorship Programme continues to provide
valuable support to community projects, clubs
and other local causes. The programme aspires
to improve, safeguard and develop the Port,
the Firth and its surrounding communities for
the benefit of all stakeholders.
Applicants must be based in one of the nine
communities that border the Cromarty Firth
and meet one of four qualifying criteria:
1. Skills development, employability, or job creation
2. Vessel crew or passenger support
3. Environmental protection and/or enhancement
4. Inter-community events or projects which enhance
and/or benefit more than one of the nine Cromarty
Firth communities and encourage inter-community
collaboration. This can include historical projects
related to the Port and the Firth; providing they are
accessible to all Firth residents.
In 2019, the Port supported projects from right around
the Firth, as follows:
2626
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
Community Projects Sponsored in 2019
Ross Sutherland Rugby Football Club (RSRFC) £10,000
Heartstone, Dingwall £2,500
Invergordon Primary Schools: Park, Milton, Newmore and South Lodge £750
Nigg & Shandwick Community Council £5,600
Highland Girls Football Tournament £950
Saltburn & Westwood Community Council £1,300
Invergordon Golf Club £4,000
SR Film Photography £2,000
Cromarty Care Project £1,000
Rosemarkie Caves Project £2,000
Community Spirit Invergordon £1,200
Archaeology Dalmore WWI & WWII £1,500
Various smaller donations £3,123
Grand total £35,923
2727
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
STAKEHOLDER ENGAGEMENT ACTIVITIESAs a Trust Port, our policy is one of
engagement and dialogue. The Port follows
the Government’s guidance for good
governance of Modern Trust Ports, which
outlines the seven primary stakeholder groups
with whom we should engage:
1. Staff
2. Port users (customers)
3. Local community (the nine communities
that border the Cromarty Firth)
4. Local and regional businesses
5. Local government and authorities
6. National government
7. Other interested bodies, such as regulators
To keep all of these different groups informed,
the Port undertakes a range of engagement
activities, including:
Regular health and safety forums
with port users
Quarterly staff meeting
Quarterly update meeting with port users
Quarterly joint community council meetings
Staff and community newsletters
Port website (www.pocf.co.uk)
Cruise stakeholder group meetings and
Facebook page
Regular press releases in the local media
Annual public meeting
Annual review
For further information regarding any of the
above, please email port@pocf.co.uk
2828
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
v
v
2929
The Port has been working with the Highland
Council, Invergordon Community Council,
Invergordon Development Trust, Stagecoach
and local tour operators to identify solutions to
the cruise traffic management challenges faced
in Invergordon as a result of the continued
growth in cruise ships visiting the Cromarty
Firth. This follows feedback received from local
stakeholders regarding issues such as parking,
road safety and cruise passenger movements.
A series of workshops were held to articulate the
key issues, identify the relevant parties involved and
responsibilities, and collectively agree appropriate
solutions. The workshops have been very positive
and proactive, resulting in a number of agreed
actions to implement, such as: designated coach and
taxi parking, passenger pick-up and drop-off zones
and zebra-crossings.
The participants involved in the workshops will
continue to work together to ensure these solutions
are put in place and help improve cruise traffic
management within Invergordon.
INVERGORDON CRUISE INFRASTRUCTURE WORKSHOPS
3030
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
The Port invested more than £600,000 in a
new custom-built pilot boat, Dalmore, which will
enable the safe navigation of vessels entering and
exiting the Firth’s waters. This was the first of two
boats planned to be purchased by the Port to
upgrade the existing vessels and to help improve
the pilot service.
The purchase of the second boat is expected in 2020. The
pilot service is a critical part of the Port’s duty and helps
to protect marine users and the surrounding environment
while they are operating in the Cromarty Firth.
The launch of the pilot boat, Dalmore, was celebrated
with an official dedication ceremony attended by staff,
their families and local stakeholders. The event included
a blessing from local clergy, with the Dalmore Distillery
providing whisky to toast the vessel and to use in the
blessing. The Invergordon RNLI also donated a cake to
commemorate the special occasion.
Dalmore was constructed by expert boat builders
Safehaven Marine in County Cork, Ireland.
DALMORE PILOT BOAT
31
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
32
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
PHASE 4 EXPANSION
33
In late 2018, the Port of Cromarty Firth was awarded
a major contract from the Moray East Offshore Wind
Farm, unlocking a new £31m quayside development.
2019 saw the construction of the new 218m berth and
11-acre laydown area commence in earnest. This was
undertaken with minimised disruption to the local area
and environment. Dredging operations stopped during
the salmon smolt run, fill material has been transported
by sea to limit road congestion and to reduce carbon
emissions, and construction activities were largely kept to
normal working hours to limit noise impact.
The expansion will be completed in 2020, ready for the
arrival of the Moray East turbines, nacelles and tower
sections. Local companies based in and around the Firth
are also benefitting from the Port securing the significant
‘Intermediary Port’ contract award, helping them win
contracts to support the offshore wind project and
safeguard local employment opportunities.
A number of key organisations played a vital role in
ensuring this major project was awarded to our region
and the infrastructure expansion could take place. We
would like to take this opportunity to thank partners
and colleagues from Highlands & Islands Enterprise, the
European Regional Development Fund, The Highland
Council, Marine Scotland, Crown Estate Scotland, the
Scottish Government and statutory consultees including
NatureScot and Scottish Environment Protection Agency
(SEPA). We would also like to give thanks to our wider
stakeholders and local communities who backed the
project and provided their invaluable support.
Funding the Project:
Port’s own funds (reinvestment)
£10.25mHIE Funding inc. ERDF:
£7.75mBank borrowing:
£13mTotal cost:
£31m
THE FUTURE – PHASE 5To ensure continued growth and success, the Port of Cromarty Firth must
continually adapt to key developments and opportunities presented in our primary
markets. This allows us to remain commercially competitive and deliver value to
our customers, whilst ensuring that our activities positively impact the people
living and working in the Cromarty Firth and the wider Highland region.
3434
In the wake of the global climate emergency, the
Scottish Government announced a commitment to
some of the most ambitious statutory carbon emission
targets in the world – adopting a 2045 net zero goal. A
number of opportunities have been linked to Scotland’s
energy transition, which were outlined in the 2019-20
Programme for Government, including capitalising
on Scotland’s huge offshore wind resource, while
supporting economic development and creating jobs.
The ongoing energy transition will impact on two
of the Port’s primary business sectors, oil & gas and
offshore renewables. The oil & gas industry has been
the foundation for business and employment in the
Cromarty Firth for decades and has an important role
to play in the managed transition to a low carbon
future. It is facing increasing environmental pressures
to decarbonise activities, which will require substantial
investments in new and innovative practices. While
the level of investment required will be particularly
challenging for operators in the mature North Sea
basin, time and again the industry has proved to be
extremely resilient and we expect the Cromarty Firth to
play a vital role in supporting its decarbonisation.
Substantial growth is expected in the offshore
renewables industry, particularly in offshore wind and
floating offshore wind markets. These sectors feature
prominently in the Scottish Government’s national
energy strategy and secured a Sector Deal through
the UK Government, which outlined significant future
funding and a commitment to increase local content
and exports. Crown Estate Scotland have also outlined
Scotland’s Energy Transition
plans for the next leasing round for Scottish offshore
wind developments (named ScotWind), with up to
10GW of capacity up for grabs right on the Cromarty
Firth’s doorstep. Offshore wind is now the cheapest
form of large-scale electricity generation, which has
largely been driven by cost efficiencies and substantial
increases in the size of components deployed.
The Cromarty Firth is already an experienced hub for
offshore renewables and the Port aims to capitalise
on this position for the future to attract long-term
sustainable business and employment opportunities.
We have played an integral role in establishing a supply
chain cluster of excellence in deepwater offshore wind
energy. The cluster – named DeepWind – features
a range of partners drawn from industry, academia
and the public sector and is aimed at ensuring local
businesses can access the major offshore wind
developers and benefit from this market.
With offshore wind components significantly
increasing in both size and weight, there is a need for
larger laydown space to ensure the Port continues to
be one of the most suitable locations for these projects
and the jobs they create in the region. In response, the
Port is currently investigating an additional extension
to the Phase 4 development, which would provide
more laydown area to create space for larger and
heavier offshore wind components – thereby helping
future-proof our facility. As with our other expansion
programmes, this would be subject to public and
statutory consultation.
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
35
P O R T O F C R O M A R T Y F I R T H A N N U A L R E V I E W 2 0 1 9
ANNUAL REVIEW 2019
Port Office, Shore Road, Invergordon IV18 0HD
T 01349 852 308
E port@pocf.co.uk
www.pocf.co.uk
top related