Shannon-Foynes Port makes €2.5m profit but warns activity must increase

THE Shannon-Foynes Port Company, the country’s second-largest port operation, has reported a record operating profit of just over €2.5 million for 2010.

The Co Limerick-based operation saw its operating profit increase by just under 30% last year and bottom-line profits rise five-fold to just over €1m.

Traffic increased strongly — a 23% increase in tonnage transported through the port to 9.4m tonnes.

This growth was driven by the agri-sector and the new €30m oil terminal at Foynes.

SFPC chairwoman Kay McGuinness said the results were all the more impressive given the lack of economic growth, adding that the figures also support the case for regional ports.

She said: “The performance strongly emphasises the national importance of ports on the Shannon Estuary, where approximately 35% of Ireland’s bulk traffic now transits, making Shannon-Foynes Port Company the largest bulk port in the country.

“Furthermore, the strong rebound in our tonnage figures suggests there are some very strong underlying sectors functioning in the economy, despite the ongoing fiscal and banking predicaments.”

SFPC chief executive Pat Keating said the short-term picture looks good for the port, but said activity levels and profitability need to be increased — rather than just sustained — for the holding company to meet its significant obligations relating to pension provision, ongoing debt requirements and future capital expenditure.

“We’re forecasting similar activity levels in the short term and, as a result, we believe we are extremely well-placed to benefit from the economic recovery when it occurs,” he said.

Ms McGuinness said SFPC has identified “significant” port development opportunities, as part of its 2010-2015 strategic plan, but has also identified significant external threats, primarily relating to national policy and regulatory matters.