Londonderry’s portremaining buoyantdespite the economy

The economic recession hit the port hard two years ago and docked it £366,510 in kept profits. This was down 61 per cent from the £941,311 generated in 2008/9. Turnover also dipped between 2008/9 from £5,088,133, to £5,076,185.

But the newly published annual report from the Londonderry Port and Harbour Commissioners (LPHC) reveals the port bounced back last year putting on profit, turnover, cargo and vessel tonnage.

It was not all plain sailing, however, with port boss Brian McGrath warning delays in enacting new legislation was restricting its ability to expand properly and that a court judgement ordering harbours help meet a shortfall in a pilots’ pension fund could lead to unknown liabilities.

Nonetheless, it was a good year’s trading overall. According to the port’s profit and loss account turnover in 2010/11 was £6,429,779, up on £5,076,185 in 2009/10. This was an increase of £1,353,594 (27 per cent).

Gross profit was up from £2,113,082 to £2,396,281, an increase of £283,199 (13 per cent) and retained profit for the year was up to £702,219 from £574,801 - an £127,418 increase (22 per cent).

Chief Executive Brian McGrath admitted operating profits before tax of £1.1m were partly boosted by the sale of excess capacity and a one off marine project but was adamant there were encouraging signs of recovery in its core business.

A bustling trade was indeed in evidence at Lisahally over the year although the gross tonnage of home trade was down from 380,000 tonnes to 307,536 tonnes.

Foreign trade was up, however, from 1,118,593 tonnes to 1,483,931 tonnes. This resulted in an increase in the total tonnage of vessels from 1,499,028 to 1,791,467 - an increase of 292,439 (20 per cent).

Equally, the gross tonnage of imported cargo last year was 1,732,079, up from 1,541,998 in 2009/10.

The increase in exports was more modest, up from 63,742 to 82,172 last year. Total trade was up 208,511 tonnes from 1,605,740 to 1,814,251 tonnes - a healthy 13 per cent increase.

In his annual report Mr McGrath notes: “Within that period (2001-2011) we ensured that the organisation was strengthened to support the long term growth ambition that has seen an increase in turnover from £2.7m in 2001 to £6.4m in 2010/11.

“The reinvestment in people, infrastructure and equipment has consolidated our position as a significant regional economic driver. This year saw a capital expenditure of £580,000.

“The results for 2010/11 are set against an international backdrop of slow economic emergence from recession. We have benefited from having a strong strategic framework in place which we have regularly reviewed to ensure its ongoing relevance.

“The steps taken last year to sell excess capacity, particularly in the marine services sector, has helped boost this year’s profits before tax to £1.1m. Although this figure benefits from a one off marine project there are encouraging signs of recovery in our core business with strong growth in year on year trade levels of 13 per cent.”

Notwithstanding the improved trade figures the port boss acknowledged some difficulties in 2010/11.

He believes new legislation needs to be put in place to allow Londonderry Port and Harbour to expand.

“One disappointing aspect was the continued delay on the new port legislation. This legislation was designed to remove LPHC and other Trust Ports in Northern Ireland, from the definition of a public corporation,” he stated.

“This would permit Ports to access private finance, which is not permissible under current legislation, and to extend its current operating powers. It is important that we engage with the Minister as soon as possible to try to establish if this new legislation can be enacted.

“Without the extended powers I am concerned that Londonderry Port will be unnecessarily limited in its growth ambitions at a time when it is important for all businesses to grow to stimulate the economy.

“The Board of Londonderry Port has the desire to both secure current operations and maximise opportunities for future generations and it is important therefore that this restriction is eliminated for both the region and indeed Northern Ireland as a whole,” he added.

He also referred to the unknown liability to the port arising from a court judgement that ruled local ports would have to contribute towards a shortfall in a pension fund for pilots.

“One issue that remains to be resolved is the Pilots National Pension Fund (PNPF). Londonderry Port as a competent harbour authority is responsible for the licensing of pilots but not their employment,” he stated.

“However, the PNPF has a substantial deficit and the Trustees of the scheme sought to establish, through the courts, if they could change the rules to make harbour authorities liable for the shortfall.

“A judge has now ruled that in fact the rules can be changed and Londonderry Port, along with many other Ports in the UK, will be liable for its share of the shortfall. This could be a substantial amount of money but as yet it is unspecified,” he warned.