annual review 2019 - cromarty firth

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

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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

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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

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PORT OF CROMARTY FIRTH – TRUST PORT MODEL

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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.


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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%

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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.

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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.


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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


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.

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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.

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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

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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.

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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.

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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

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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


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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 [email protected] 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


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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

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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.

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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:

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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

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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 [email protected]

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v

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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

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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

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PHASE 4 EXPANSION

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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.

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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.


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ANNUAL REVIEW 2019

Port Office, Shore Road, Invergordon IV18 0HD

T 01349 852 308

E [email protected]

www.pocf.co.uk

annual review 2019 - cromarty firth

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