SHANNON FOYNES PORT COMPANY CONTINUES TO PERFORM STRONGLY

Shannon Foynes Port Company (SFPC) reported an exceptionally strong year in 2021, with record earnings achieved and profit before taxation exceeding €5.2 million for the first time.

Ireland’s second largest port operator and largest bulk port company, Shannon Foynes Port has statutory jurisdiction over all marine activities on a 500km2 area on the Shannon Estuary, stretching from Kerry to Loop Head to Limerick. Adjacent to the world’s busiest shipping routes, with current capacity to handle over 10 million tonnes annually and with water depths of up to 32 metres, it is uniquely positioned to expand as an international cargo hub serving the domestic, European and worldwide mar- gins. This expansion will be accommodated by up to 1,200 hectares of land available for port development.

Last year’s performance was down to a mix of recovery from Covid-19 impacts sooner than expected, a resurgent

Contact Details:

Shannon Foynes Port Company Harbour Office, Foynes, Co. Limerick, V94 R232.

Telephone: 069 73100

Email: info@sfpc.ie

Web: www.sfpc.ie economy and the supply / demand imbalance in the energy generation sector. With tonnage throughputs increasing by 16% to 10.9 million tonnes, turnover increased by 23.8% to €16 million (2020: €12.9 million). Tonnages were particularly strong in the agriculture and construction sectors, with the export of cement and related imports growing strongly.

Overall, SFPC’s general cargo terminals of Limerick and Foynes performed strongly, with year-on-year throughput increases of 9.9%, manifesting in these terminals now operating at historically high levels.

In addition to throughput and turnover growth, stringent cost management remained a core focus, resulting in returning a significantly improved EBITDA margin of 47.5% (2020: 42.9%) and historically high EBITDA of €7.6 million (2020: €5.6 million).

Shannon Foynes Port CEO Patrick Keating said that despite challenges of 2022, he remained confident about the company’s future: “Notwithstanding the tragic events unfolding in Ukraine, we remain confident that there are significant opportunities to grow and expand the Port at the operating level. With an expanded business development function, we have identified targeted areas that will drive revenue growth over the short, medium and long-term.”

Mr Keating said that since 2011 – the base year of the company’s masterplan, Vision 2041 – tonnage at its general cargo terminals increased by 60%, even accounting for the Covid contraction. This performance is also reflected in the company’s balance sheet, with net assets increasing by 281% to €54m since 2010 and with annual net operating cashflow increasing by over 170% over the same period.

The SFPC CEO added that due to the increased tonnage throughputs projected in Vision 2041, the ongoing roll-out of the company’s investment programme is continuing at pace.

Following the completion of Phase 1 at a cost of €12m, construction has now commenced on Phases II through to IV. These phases, costing a total of €33m, will involve construction of 117 metres of new quay to join the East and West

Jetties, infilling for associated quay set down together with the development of 38 hectares site at Foynes as a port business park. These represent the largest capital projects ever undertaken by the company and are scheduled to be completed in 2023.

Mr Keating explained that the company will have a significant part to play in assisting the country’s transition to a low carbon economy due to its role as an international offshore renewable energy hub.

“Our medium-term Capital Investment Program has been reviewed to ensure that the Port will have the necessary capacity for the medium term to accommodate this transition, particularly with regard to offshore renewables and deep-water berth capacity,” he said.

Commenting on the 2021 results, SFPC chairperson David McGarry said: “The year not only recorded great financial success but also notable progress on several fronts with regards to SFPC’s Strategic Plan. With SFPC making strides internally, it also remains one of the foremost economic drivers for the Mid-West Region.”

Mr McGarry noted that the Board had made significant progress on realising the objectives of the Strategic Plan 2021–2025. The company has now updated its objectives with the drafting of a 2022-2026 Strategic Plan, which has been delivered to the Department of Transport and the Department of Public Expenditure and Reform, with the report expected to be approved soon.

Meanwhile, Patrick Keating said that the Foynes to Limerick Road is one of the key infrastructure elements that will assist in unlocking the Shannon Estuary’s potential as a global renewable energy and logistics hub.

Welcoming the approval of the road by An Bord Pleanála recently, Mr Keating outlined that it is imperative that the development is prioritised so that SFPC can capitalise on the unprecedented opportunity for the State from both floating offshore wind and improving the capacity of the national supply chain.

“The granting of approval for the road is a hugely welcome development as it is critical enabling infrastructure for realising the potential of the Shannon Estuary as a global floating offshore wind energy and associated alternative green fuels production, and logistics hub,” he commented.

“The opportunity for the Estuary is at a scale that will be transformative from an economic perspective for the region and, indeed, the State. Moreover, it will have national and international impact on the fight against climate change as we have an infinite supply of renewable energy in the Atlantic accessed from the Shannon Estuary. These renewable resources will not only serve Irish energy demand but can also support Europe in unwinding its dependence on Russian gas by the production of green alternative fuels.

“But for all that to happen, we need to transform our port infrastructure and the 35km Limerick to Foynes Road is an essential element of that. Together with the regeneration of the rail link from Limerick to Foynes, the contract for which is now out to tender, this will ensure the port has the type of connectivity essential for it to play this pivotal role in Ireland’s future.

“The road already has government backing through the National Development Plan and now has approval from the relevant planning authority. But we must ensure that the project is prioritised and that we can move quickly through to final approval stage and, ultimately, to the development of the road.”

Mr Keating said that the Foynes to Limerick Road has been a priority for the port authority since the launch of the Vision 2041 masterplan.

“Such is the opportunity for the Estuary now that we have engaged Bechtel, who are world leaders in strategic planning and development of ports, to update it. We see the granting of approval for the road as further validation of this opportunity.”

Mr Keating added: “This new road facilitates the sustainable development of the immense renewable energy resources in the Atlantic by properly connecting the adjoining deep-water port of Foynes on the Shannon Estuary and as such is so much more than a road. It’s key to unlocking our green energy future as well as providing resilience on the national supply chain.

So the commitment of the Mid-West

Road Design Office, Limerick City and County Council, the wider stakeholder community and, indeed, An Bord Pleanála for its careful consideration, must be acknowledged in getting us to this important juncture.”

Shannon Foynes Port Company was formed in 2000 following the merger of the former Shannon Estuary Ports and Foynes Port companies, and specialises in bulk cargoes which constitute more than half the cargoes transiting Irish ports. It accounts for more than 37% of all bulk cargoes in the Republic of Ireland, with typical cargoes including liquid fuels and chemicals; ores, coal and other energy products; agri-business inputs such as animal feedstuffs and fertilisers; recyclable materials; and various project cargoes, including wind turbines for wind energy projects.

Fully certified to ISO 9001:2008 and OHSAS 18001 standards, SFPC’s location on one of the deepest waterways in Europe enables it to accommodate the world’s largest ships and to act as a gateway between Europe and North America. Its future has never looked brighter.