Report calls for major investment in ports

The country’s ports add €5.5bn to the economy a year but are in dire need of substantial investment, leading consultants revealed today.

A report by Indecon International showed two thirds of exporters want to see the facilities and infrastructure at the 11 state seaports greatly improved to deal with the extra traffic.

With Ireland being a largely export based economy, the Irish Ports Association outlined the vital commercial role of the ports and warned of the consequences of neglecting them as key infrastructure.

Eamon Bradshaw, chairman of the IPA, said Indecon had given the “independent verification that the State Commercial Seaports are significant net contributors to the Irish exchequer, form a substantial part of Irish economic life and generate significant employment, particularly in coastal areas".

Commissioned by the IPA, the report found two thirds of exporters believe investment in ports infrastructure must figure highly in the next National Development Plan.

Mr Bradshaw called on the Government to follow the advice from Indecon, but the IPA refused to be drawn on how much money they believed was needed.

Some 57,500 people are employed full-time at the ports. And the report noted trade with other countries contributed a net €33.2bn to the Irish economy in 2004, with sea based transport accounting for 84% of the total volume and 58% of the total value of goods traded by the Irish economy.

Also in 2004, €38.7m was spent by the eleven State Commercial Seaports on wages and salaries for their 694 employees directly involved in the activities of the ports/harbours.

Alan Gray, Indecon managing director, warned that Ireland is an extremely open economy where we import most of what we consume and export most of what we produce.

“Ports are playing a key role in Ireland’s economic development and this report for the first time details the economic contribution of Ireland’s commercial seaports,” he said.

“It highlights their importance and the need for investment to ensure that they continue to meet Ireland’s needs as a trading nation.”

The report stated: “Ireland is a small open economy that relies strongly on trade with other countries. The importance of trade within the overall context of the Irish economy is indicated by the fact that, in 2004, Ireland traded almost 56m tonnes of merchandise.

“Moreover, exports accounted for over two-thirds of gross national product, while the combined value of total exports and imports totalled some €135bn.”

Pat ‘the Cope’ Gallagher, Minister for State at the Department of Transport, added: “The report published today will no doubt provide a useful source of information on the significant economic impact of the ports sector at a national level.

“The initiative taken by the Irish Ports Association to commission such a report from Indecon is to be commended.”