Masterplan 2011 to 2040

Presentation to Dublin Chamber of Commerce

Infrastructure and Transport Taskforce

05th May 2011

What’s happening?

• Preparing a Masterplan 2011 to 2040• Public consultation process started Wednesday 6th

April• Finishes 31st May• Analyse responses June to August• Finalise Masterplan September to October• Publish Masterplan November

Consultation Process

• Pre-consultation took place in January / February• Launched Issues Paper Wednesday April 6th • Background papers and analysis• www.dublinport.ie/masterplan• 50,000 flyers into local houses• Posters locally• Public information days April 26th to 28th

• Conference on May 11th

Who are we consulting with?• Customers / staff / local communities• Government Departments• Irish Exporters Association• IDA / Forfás • Dublin City Council• Dublin Docklands Development Authority• National Transport Authority• National Roads Authority• Irish Rail• Dublin Chamber of Commerce

Objectives• Broad agreement on the future of the Port with all

stakeholders• Create a framework for future projects• Facilitate future planning applications• Re-integrate the Port with the City• Use what we have better

Volumes are growing again – 6.1% in 2010

What happens if growth continues?

Year Gross tonnes

AAGR

1950 2.9m -

1980 7.3m 3.2%

2010 28.9m 4.7%

2040 60.0m 2.5%

Short-term outlook

• Down 0.3m tonnes of bulk liquid – likely to come back as economy recovers

• Down 1.0m tonnes in bulk solid – unlikely to recover quickly

• Unitised – down 180,000 units – likely to come back as economy recovers

• Peak was 30.9m tonnes in 2007• DPC will likely hit 32.0m tonnes within two to three

years

32.0m tonnes in three years implies 3.2% AAGR since 2000

Issues Paper• Background information:– Key issues for the Port– History– Description– Engineering and environmental background– Planning and land use– Economics and Future trends

• Poses more than 60 questions

How will Dublin Port handle 60m tonnes

by 2040?

How might we handle 60m tonnes by 2040

But why is DPC doing all this?

• Get the story straight with all stakeholders• From customers’ perspective:– Capacity utilisation is paramount– Make more use of what we have– DPC open to supporting customer initiatives which improve

utilisation of the existing estate and berths – DPC will need to build capacity in advance of demand, but

not too far in advance

• Want customers to understand our development plans based on our business priorities

Business Priorities

• Provide port infrastructure to be operated by private sector customers (shipping lines, terminal operators and stevedores)

• Develop and maintain commercial relationships with customers in such a way as to maintain competitive forces in the shipping, terminal operation and stevedoring markets

• Generate a return on capital employed sufficient to remunerate past investments appropriately and sufficient to allow future investment in port infrastructure

• Subject all capital investment proposals to rigorous appraisal to ensure target ROCE is not compromised by inappropriate investment decisions

• Manage operating costs downwards to appropriate levels• Manage port pricing consistent with the above objectives• Distribute surplus cash by way of dividends

A quick word on McCarthy

• The regular payment of a reasonable dividend to the shareholder is good practice and a performance regulator. The Group recommends that a dividend of at least 30% of profits should be paid each year except in the most unusual circumstances.

• The state-owned ports, including Rosslare, should be restructured into several competing multi-port companies, built around Dublin, Cork and Shannon Foynes. The Competition Authority should be consulted concerning the amalgamation process.

• Privatisation of some or all of the ports should be considered, ideally after the recommended restructuring. The adequacy of competition in the sector on an all-Ireland basis should be reviewed prior to privatisation and suitable regulatory arrangements instituted, if deemed necessary.

Questions?