Higher interest rates hit profit at Port of Cork Company amid traffic declines

Throughput at the Port of Cork declined to 9.5 million tonnes in 2023. 

Higher interest rates and volatile global events have seen profit at the Port of Cork Company fall during the course of last year as overall traffic through Bantry Bay declined to 9.5m tonnes.

According to the company’s latest annual report, revenue at the port during last year stood at €48.4m which was consistent with 2022. This is despite throughput dropping from 10.2m tonnes in 2022.

In total, the port handled 263,859 containers during 2023.

The port’s operating profit continuing operations was €7.5m, down from the €9.16m in 2022, reflecting increased interest charges and additional operational costs. Profit after tax stood at €6m.

In addition, 2023 saw 106 cruise liner calls to the ports of Cork and Bantry, a 16% increase year-on-year, carrying 190,000 passengers in total.

The report estimates that this generated €17m to the local economy which the company expects to further increase this year.

The report noted that all other port traffic declined slightly, which the company expected, as the economy adjusted after the pandemic and it navigated challenges such as rising interest rates, inflation, and other global events.

Chief commercial officer at the Port of Cork Company Conor Mowlds said the decrease in operating profit can be attributed to several factor including a €1m increase in interest charges, a €900,000 decline in storage revenue, and an additional €1m costs associated with operating dual Container Terminals in Tivoli and Ringaskiddy.

“Despite hurdles faced last year, our performance underscores our resilience and commitment to growth and excellence. We have a relentless focus on operational efficiency and cost management,” he said.

As of the end of 2023, the company’s bank balance stood at €28.8m.