FERRY AND cargo operator Irish Continental Group (ICG) and its landlord Dublin Port are in dispute over a proposed 60 per cent rent increase being sought by the State-owned company.
The Irish Timeshas learned that Dublin Port is seeking to increase the rent on ICG's Lo-Lo container terminal operation to €35,000 an acre from the current level of €22,000 an acre.
The Lo-Lo facility uses a 33-acre site at Dublin Port. It is separate to the ICG-owned Irish Ferries operation there.
The rise is the result of a five-year rent review that forms part of ICG’s 150-year lease on the land.
In a statement, ICG said it had operated under a lease arrangement with Dublin Port for more than 40 years.
“To be confronted with a 60 per cent rent increase in the current economic environment is totally unacceptable. The fact that the increase is being sought by a State company when Government is seeking to curtail rent increases makes it all the more unacceptable. Such a price increase, if implemented, would inevitably result in increased costs for exporters, which would be damaging to the economy at this critical time,” it added.
It is understood that Dublin Port has offered to change the terms of ICG’s arrangement from an operating lease to a licence. This would involve the port taking over maintenance of the land and would result in ICG paying a peppercorn rent. It would give the port company control over cargo dwell times.
But ICG argues that such an arrangement would result in its losing security of tenure. The company also earns significant rent at the site from container groups who use the facility.
Eamonn O’Reilly, chief executive of Dublin Port, said: “It’s a standard lease that is up for rent review. We will do this in negotiations with ICG. “We would be prepared to look at alternative arrangements that would greatly reduce the costs in the port to the company.”
He said the matter was heading for independent arbitration.
Dublin Port’s recent masterplan for the area states that it would “maintain a policy of increasing rental levels over time” for Lo-Lo terminal operators.