Fahey commissions study to examine port privatisations

The Minister for the Marine and Natural Resources has commissioned a study to examine privatising the State's main ports and has promised to transfer responsibility for regional ports to local management within the next year.

Mr Fahey has also decided to set up commercial port firms in Dundalk, Co Louth, Wicklow and Bantry, Co Cork. Replacement of the existing harbour authorities in the three locations will be conducted "as quickly as possible", the Minister has told the Irish Ports Association.

The Minister said he had asked his Department to commission an assessment of the port services model and to consider a move towards "full or part privatisation" of the eight main ports. All stakeholders would be consulted, and he hoped to map out a new direction by this time next year.

The Minister is also due shortly to publish an assessment of port access, completed by Arup Consulting Engineers and ORM Consulting and funded by the EU. Initial results have highlighted bottlenecks and will strengthen the case for improved access, he said.

He said he would implement the recommendations of last year's KPMG consultancy report on regional ports and harbours, underpinned by the National Development Plan.

There was also a "golden opportunity" to use available port estates "imaginatively", the Minister said, to maximise their value and contribution to the port and its local economy - and "to support a range of public policy objectives, other than provision of core port business and services".

Creation of industrial zones and enterprise parks, mixed office and residential developments, and waterfront developments, including "stand alone or mixed marine tourism, recreational or cultural type infrastructure" were examples of such opportunities, the Minister said.

His Department would work with the Office of Public Works on a policy for development of port estates in the public interest.

The National Development Plan commits £46 million (€58.4 million) for sea ports, with co-financing solely from the Exchequer. The Minister expects this would support a £120 million investment programme.

Some £10 million will be available for the Border Midland and Western region, and the balance of £36 million will be for the southern and eastern regional operational programme. Discussions are continuing with the Department of Finance, the Minister said, and he expected to invite formal applications for co-financing, following consultation with the regional assemblies.