Chief Executive’s Review

Outlook for 2023

Against the backdrop of a robust performance in 2022, the previous two years were challenging because of the combined effects of Covid-19 and Brexit. As we look ahead to 2023, we have taken a reasonably conservative view and budgeted for an overall growth rate of 2.4%. The early months of 2023 are likely to remain soft given the current economic environment and LoLo volumes are being impacted by a reduction in Deep Sea Far east imports.

The Company remains focused on the long-term objectives of Masterplan 2040 and our Capital Infrastructure Investment Programme remains an imperative in terms of meeting the long-term requirements of the Irish Economy. Capital Investment in 2023 is expected to rise to €87m from €48.0m in 2022. The investment programme in 2023 will be driven by further development works at Alexandra Basin West as part of the ABR Project as well as the commencement of construction works at Berths 52 and 53 as part of the MP2 Project. In addition, we will also continue to develop the Dublin Inland Port facility in order to provide for the relocation of non-core activities from the main port estate in order to free up land for the transit storage of cargo.

The shift in RoRo volumes from GB ports to the longer run European ports will continue to put increased pressure on Port capacity as volumes on the direct European services are pre-dominantly driver unaccompanied.

Thankfully, Border controls by State services continue to operate efficiently to the extent that the Company is seeking the return of at least half of the 14.6 hectares of port lands given over to facilitate the border inspection operations of Customs and the Department of Agriculture. This is a critical challenge if we are to mitigate the already emerging capacity pinch points.

To put this challenge in context, the 14.6 hectares of land allocated to State Services in the run up to Brexit is equivalent to approximately 300,000 RoRo units or 7m gross tonnes per annum in port capacity terms. This is equivalent to 19% of our current throughput. It is our view that it is now time to reassess land usage and processes to balance the requirement of state services with the pressing needs of Dublin Port for capacity and terminal operators and hauliers for efficiency.

In the long-term, we need to see all of the border control infrastructure consolidated in one area – most likely at the northwest corner of the port and we will continue to engage with the Office of Public Works and State Services with this objective in mind.

There is a continual focus on long-term planning in the Company and we will work during the coming year to develop the 3FM Project with a target of lodging a planning application with An Bord Pleanála in the Summer of 2023.

The 3FM Project is the third and final Masterplan project required to bring Dublin Port to its ultimate capacity by 2040. This project is located on the Poolbeg Peninsula and will deliver c.12m tonnes of capacity. The project will include conversion of the existing LoLo terminal with a RoRo terminal principally to serve unaccompanied RoRo routes to Europe. It will also include delivering a large new LoLo terminal in front of the Poolbeg Power Station. Another key element of the project is the Southern Port Access Route (SPAR) which will provide a dedicated link from Poolbeg to the Dublin Port Tunnel.

Responding to climate change is at the centre of our plans and in 2022 the Board adopted the Climate Action Framework for the Commercial Semi-State (CSS) Sector and approved the climate action targets and the five-commitment approach to achieving targets set for 2030. During 2023 we will continue the work undertaken to date identifying the potential impacts of climate change on the Port’s North and South walls and the mitigation measures required. There is a need for ongoing and active engagement with other stakeholders to look at the possible impact of climate change on ongoing and future Port developments and planning.

The developments envisaged in Masterplan 2040 are an essential driver in providing the port capacity required to facilitate future economic and population growth. However, infrastructure is not sufficient in itself and measures will be required to change supply chain practices so as to increase utilisation of the capacity being developed. This applies in particular to landside operations where two challenges need to be addressed.

Firstly, the movement of goods by HGV needs to become truly 24/7 and current demand peaks will have to be flattened. Secondly, the land area of Dublin Port is fixed, and the faster cargo moves through the port, the greater its capacity. In this regard dwell times of trailers and containers need to be greatly reduced.

The above considerations create an objective to use digitalisation as an enabler for increasing the efficiency of port operations. Over the coming year we will commence with the groundwork for what will be a major initiative that will require a business transformation project involving not only Dublin Port Company but also a wide range of stakeholders across the supply chain. Digitalisation has a key role to play within the Port to facilitate a much smoother and faster transition of freight.

Dublin SafePort is a Port-wide initiative launched in 2022 to enhance safety culture and practice for all workers in Dublin Port. The initiative is the result of extensive collaboration between Dublin Port Company and the seven largest unitised terminal operators at Dublin Port (Dublin Ferryport Terminals, Doyle Shipping Group, Irish Ferries, P&O Ferries, Peel Ports Group (MTL), Seatruck Ferries and Stena Line). The initiative looks to standardise safety practices and procedures across the 260-hectare port estate.

During 2022 the working groups of the Dublin SafePort initiative have achieved extensive alignment on areas such as speed limits, use of Personal Protection Equipment (PPE) and the training of a number of terminal workers as Safety Champions, who host weekly engagement sessions with port workers, resulting in powerful conversations on what more we can all do to support safety within the Port. Dublin SafePort also liaises with other relevant authorities, including An Garda Síochána, the Road Safety Authority, and the HSA. We look forward to continuing our work together as a team under Dublin SafePort in 2023.

Barry O’Connell, Chief Executive

31^st March 2023