Port of Cork faces significant cashflow challenges in the immediate future, according to chief executive Eoin McGettigan.
In the company’s 2021 annual report, the CEO referenced Ringaskiddy redevelopment which required loans from EIB (€30m) and AIB (€30m).
According to McGettigan: “These loans will require annual repayments of interest and capital each year of just under €5 m per annum over the next five years, alongside the requirement to replace ageing cargo handling equipment and make key strategic investments.
“The servicing of this debt burden is the critical issue facing the company which can only be addressed by continuing to improve efficiencies, by reviewing our asset base, by adding value to our services and gaining new business.
"In this context timely ministerial approvals on a number of issues would all be very helpful."
In Association with
Port of Cork increased turnover by 18% to €39.8m in 2021 and raised operating profit to €7.8m, according to Port of Cork Company’s annual report.
PoCC didn’t pay a dividend to the state, the port owner, in 2020, pleading Covid impacts. For 2021, a dividend of €250,000 is proposed, the same as 2019.
Cork is the second largest port in the state in terms of turnover, handling all cargo types including lift-on lift-off, bulk liquid, bulk solid, break bulk, roll-on roll-off and cruise.
In 2021, Cork Port and its subsidiary Bantry port has total consolidated traffic throughput of 10.6 million tonnes, in line with 2020.
While PoC trade increased by 857,000 metric tonnes or 9%, while Bantry tonnage declined by 817,000 metric tonnes or 62% due to the decline in oil trading on the international market.
For the year 2021, non-oil traffic excluding unitised cargo (i.e. animal feed, fertilizers, project cargo, break bulk etc) amounted to 1.7 million tonnes which remained unchanged overall from 2020.
Non-oil traffic imports of timber, gas, cement and molasses increased while imports of animal feed, fertilizer, chemicals and scrap decreased. Trade car imports increased by 22% to 36,600 units.
The number of container twenty-foot equivalent units (TEUs) increased by 13% to a record 282,000, the report states.
The annual report also discloses progress on a new berth for cruise liners in Cobh at Lynch’s Quay has stalled.
Expressions of Interest were canvassed in 2019. “This resulted in a number of submissions which will be considered at a more economically suitable time,” says the company.
"It is the view of the PoCC that considerable potential exists for commercial tourism opportunities in both Cork and Bantry harbours which would support the growth of the established cruise and other tourism related businesses."
Employment costs
Employment figures increased from 155 to 164 with employee costs rising from €12.3m to €14.4m. Average pay per employee was €69,000, up from €66,000.
The new Cork Container Terminal in Ringaskiddy, which commenced operations in April 2022, represents the biggest single investment in marine infrastructure in the port’s history.
The company says that CCT will allow the port to relocate its container business from the current city centre Tivoli location to Ringaskiddy once the M28 motorway is complete.
Conor Mowlds, chief commercial officer, commented: “The completion of CCT represented the first phase of the port’s strategic development plan will see new cargo handling equipment, an extension of the deep-water berth, and a further extension of CCT over the coming years.
“Following a strong financial year, we are now in a better position to progress these vital additions to our infrastructure.
“We look forward very much to the completion of the M28, which, when combined with CCT, will future-proof the Port of Cork to the benefit of the Irish, regional, and local economies.”
Mowlds added: “We are very well positioned to act as a key hub for Ireland’s move towards offshore renewables and at the same time support the journey to net-zero through our well-developed presence in transition fuels.”
