Welsh Ports
’Driving Growth’
PRODUCED FOR THE WELSH PORTS GROUP
BY THE BRITISH PORTS ASSOCIATION
& THE UK MAJOR PORTS GROUP
Welsh Ports –
“Driving Growth”
The purpose of this review is to
act as a brief guide to the ports
industry in Wales, what it does,
how it operates, and what it
would like to see in the future.
British Ports Association
Tel: +44(0)20 7260 1780
Fax: +44(0)20 7260 1784
www.britishports.org.uk
UK Major Ports Group
Carthusian Court
12 Carthusian Street
London EC1M 6EZ
Tel: +44 (0)20 7260 1785
Fax: +44 (0)20 7260 1788
www.ukmajorports.org.uk
Contents
Facts and Figures
About the Industry
Ports Policy
Ports, Commerce, Jobs and Growth
Growth Markets- “Leisure and Tourism”
Improving Safety and Skills
Challenges Ahead
Collective Aims
Welsh Ports Group Members
04
06
07
09
11
12
13
14
15
03
Some Facts and Figures
Ports in Wales represent every possible port type and
activity. The industry handled 54 million tonnes of cargo
in 2009 – 10% of total UK throughput, and equivalent to
18 tonnes of cargo per person. The equivalent figure for
England is 8 tonnes. Bearing in mind the UK’s position as
the largest ports industry in the European Union, this is a
significant total and makes it larger than, for example, the
ports industry for the whole of the Republic of Ireland.
Annual port throughput in wales in 2009
Port
Throughput (thousand tonnes)
Barry
327
Cardiff
1,992
Fishguard
366
Holyhead
2,852
Milford Haven
39,293
Mostyn
21
Neath
206
Newport
2,734
Port Talbot
5,156
Swansea
401
Other ports
375
Wales
53,723
2009 UK port throughput (thousand tonnes)
Wales
UK
Welsh %
Import
34,779
303,598
11.5
Export
18,944
197,264
9.6
Total
53,723
500,863
10.7
Activities at Welsh ports
Number of ports
6
7
8
10
11
8
7
6
5
(Samples taken from Welsh Ports Group members)
Cargo activity at Welsh ports
04
Number of ports
7
7
6
5
6
5
5
Ports are part of a maritime sector dependent on the
richness and diversity of the Welsh coastal and marine
environment. The Welsh coast extends for 1200km, much
of it consisting of specially protected sites because of the
habitats they sustain.
A study, “Valuing our Environment” and co-ordinated by
the National Trust Wales, put some figures to the economic
value the coast generates. It showed that 52,000 people are
directly employed in coastal/marine activity, and
40,000 indirectly.
This generates £4.8bn in direct income, £2bn in indirect
and induced activity and contributes £1.5bn of GDP to
the Welsh economy. The highest number of estimated
direct jobs are in Cardiff, followed by Pembrokeshire and
Neath/Port Talbot, reflecting the continued importance of
manufacturing to the sector.
The North Wales marine and coastal economy is
predominantly, though not exclusively, tourism based.
Tourism accounts for over a third of direct coast and marine
employment in West Wales and for over half of coastal and
marine sector direct jobs in south east Wales.
All of Wales’ major cities are on the coast, with 60% of a
population of 3 million living and working there. The Welsh
economy is the 10th largest of the UK’s 12 regions (these
comprise the 9 English government office regions, Scotland,
Northern Ireland and Wales).
Today’s Welsh economy is dominated by the service
sector which contributes 66% to the country’s Gross Value
Added, the measure of contribution to the Welsh economy,
in comparison with the manufacturing sector which
contributes 32%, and agriculture, forestry and fishing which
contribute 1.5%.
Although economic output per head has been lower in
Wales than other parts of the UK, there is nevertheless
a diverse manufacturing sector. Heavy industry has not
escaped the major restructuring that has affected the entire
UK economy, but it is still very significant and continues its
traditional association with steel making.
Nearly all the tin plate and much of the aluminium
produced in the UK come from Welsh plants. Bearing in
mind their predominantly coastal location, Welsh towns and
cities have a close connection and economic interaction
with ports and the maritime sector.
Port locations in Wales
05
About the Industry
Ports and harbours are products of their locations. They
vary widely in size and type of activity, and can have local,
regional and sometimes national significance.
Apart from the commercial operations normally associated
with ports – the handling of freight and passengers – ports
carry out many important statutory duties, ranging
from ensuring navigational safety to the operation of
sophisticated security and environmental regimes. They
provide facilities for a wide range of users and support a
variety of businesses.
There are three models of port ownership in the UK; trust,
municipal and privatised. All exist side by side in Wales and
their status does not affect their independence.
A trust port is an independent statutory body governed by
its own local legislation and controlled by an independent
board. Trust ports have a high degree of accountability and
are subject to the provisions of “Modernising Trust Ports 2”
which provide recommendations and guidelines on how
trusts should demonstrate accountability and commercial
progress. Trust ports in Wales include Milford Haven, Neath,
Newport (River Usk), Caernarvon and smaller trusts such as
Saundersfoot.
There is a substantial privatised port sector in Wales.
Privatised ports are privately owned companies, sometimes
part of a larger ports group, for example, the south
Wales ports of Associated British Ports which include
the operations at Barry, Cardiff, Newport, Port Talbot
and Swansea. Other privately owned ports include the
Stena Line Ports of Holyhead and Fishguard and the
independently owned port of Mostyn.
Municipal ports are run by local authorities and come under
the influence of the Department for Communities and Local
Government. In 2006, municipal port corporate governance
guidelines were published as part of a Municipal Ports
Review; these are having an increasing effect on municipal
port management.
The municipal guidelines emphasise the benefits of both
financial independence through the ring-fencing of
accounts as well as the setting up of corporate structures
with a more traditional board approach, allowing the
executive to work with a board with a range of maritime
and business expertise. Examples of Welsh municipal ports
include those managed by Conwy and Isle of Anglesey
Councils. For the most part, local authority ports in Wales
are smaller harbours focussed on leisure yachting
and fishing.
06
Ports Policy
UK Ports policy is based on financial and strategic
independence. Unusually within the EU, UK ports are not
subject to any form of systematic financial support and this
makes them particularly competitive and user focussed.
Operations and new developments are funded from port
returns and private investment. This national policy has
been confirmed in various government reviews.
Most recently, the draft National Policy Statement presented
by the previous government for ports has acknowledged
that a better understanding is required of English and Welsh
port development needs. It therefore contains forecasts
for ro-ro, container and bulk traffic up to 2030. There have
been changes to the UK and Welsh planning systems
over the past few years. These are the results of changes
introduced by the 2008 Planning Act and 2009 Marine and
Coastal Access Act.
In particular, the Marine and Coastal Access Act has
introduced the Marine Management Organisation (MMO)
and a requirement to produce marine plans for the Welsh
coast – similar arrangements will apply to the rest of the UK.
Producing plans for the coast is a complex undertaking.
It involves considerable consultation not only with
commercial users, but with a range of stakeholders
involved in coastal activity. The result will be a Welsh
coastal plan which not only maps current uses, but also
gives an indication of the suitability of particular areas for
new activity and development. Connected to this will be
changes to the consents and licensing system.
The intention is to give more certainty to developers,
shortening the application process and using exemptions
where appropriate. Currently even small licence
applications can generate considerable work and cost, and
so we will be working with WAG’s Marine Consents Unit to
take a pragmatic approach towards streamlining the system.
All these changes will take place under the umbrella of a
new UK Marine Policy Statement. This will drive marine
plans and set high level marine objectives. The role of
profitable and efficient marine businesses as integral to the
objectives cannot be overestimated.
In Wales, licensing will continue to be handled by the WAG
Marine Consents Unit (MCU) and the over-arching UK MMO
will administer major Harbour Revision Orders, Harbour
Empowerment Orders and other harbour legislation
amendments on behalf of the Department for Transport..
There is concern in Wales about the resources available
to the WAG MCU. At the very least, the Unit would be
expected to replicate the efficiencies promised by the MMO.
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The existence of the Unit as a separate centre, sometimes
duplicating the work of the MMO, needs to be constantly
scrutinised to ensure that Welsh ports do not lose out in
any way.
Other than the Harbours Act 1964there is very little
legislation directly aimed at ports; most of it is of a general
nature such as the Environmental Impact Assessment
Regulations. However, specific legislation includes
regulations on disposal of dredgings, receiving marine
waste and, a particular feature of the past few years,
security.
Ports are also regulators themselves. They have powers
to control harbour waters, issue directions and implement
byelaws. In fact, the overriding duty of all ports is the
responsibility to provide safe navigation. Ports cannot
refuse entry to a ship provided it does not pose a physical
threat to the port and the rights of users are enshrined in
legislation which goes back to the 19th century.
A particular feature since the late 1980s has been industry
deregulation, beginning with reform of the pilotage service
and followed by repeal of the Dock Labour Scheme in 1989.
In 1991 the Ports Act, which sets out procedures whereby
Trust ports can be privatised, was passed. In combination,
these measures make the UK industry the most deregulated
in the EU.
An alternative to legislation has been the use of Codes of
Practice. A prime example is The Port Marine Safety Code
(PMSC) originally launched in 2000 but refreshed and
re-launched in 2009. The PMSC encapsulates the strong
relationship between ports and government, particularly
the Maritime and Coastguard Agency, in delivering safety.
The PMSC requires that each port carries out a risk
assessment and produces a safety plan in consultation with
port users. The Code is strongly directed towards senior
management and board members, collectively defined in
the Code as the “duty holder”.
Although strictly speaking the Code does not have legal
force, it may nevertheless be used in evidence when an
incident occurs and ports are required to sign off their
compliance with the Code every three years. Backed by a
Guide to Good Practice which is under constant review, the
Code has demonstrated a pragmatic, flexible and successful
approach to safety.
As well as these Codes the Department for Transport has
also produced guidance for ports to complete Master Plans.
The guidance encourages the production of strategic plans
and ports are using these to highlight their future direction
to local, regional and national planning bodies.
08
Number of ports
8
7
6
10
Passengers (2009)
11
8
7
6
5
501,000
Fishguard
1,942,000
Holyhead
Ports, Commerce, Jobs and Growth
The Welsh ports industry can be broken down into the
(Samples taken from Welsh Ports Group members)
following
main component parts; unitised trade (ro-ro and
containers); oil, gas and energy; bulk cargo; leisure and
fishing harbours; and passenger traffic.
Milford Haven
Road goods vehicles passing through Welsh RoRo/Ferry Ports
Number of vehicles and unaccompanied trailers in 2009
Fishguard
Milford Haven
7
6
Wales Total
6
5
5
9,000
34,000
273,000
Holyhead
Number of ports
7
2,758,000
Wales Total
Cardiff
Cargo activity at Welsh ports
315,000
68,000
385,000
5
4
3
3
2
2
3
2
An example of the value of port operations to a local
economy is demonstrated by Holyhead. With 4500
jobs in Holyhead itself, the port is responsible for direct
employment of 25% of the local workforce. There is an even
larger number of indirect employment impacts created
elsewhere on Anglesey.
(Samples taken from Welsh Ports Group members)
Welsh ports are key economic gateways between Britain
and Ireland, providing a vital land bridge for freight and
passengers as well as supporting important economic
corridors in northern and southern Wales.
The significant ro-ro and passenger traffic handled by
Holyhead, Fishguard and Milford Haven supports a
strategically vital trade route between Ireland, the UK and
the Continent. Daily services from Fishguard, Holyhead and
Pembroke Dock at Milford Haven regularly sail to Dublin,
Rosslare, and Dun Laoghaire. In 2010 a new Swansea to Cork
ferry service was launched reinforcing the vital gateway that
Welsh ports provide to Irish markets.
In 2009 over 385,000 roads goods vehicles and trailers
travelled between Wales and Ireland. A total of 2.75 million
car, coach, lorry and foot passengers passed through the
ports in the same period.
Holyhead is the second busiest Ro-Ro ferry port in the
UK, with only Dover handling more cars and road goods
vehicles each year.
International sea passenger movements
Passengers (2009)
501,000
Fishguard
1,942,000
Holyhead
315,000
Milford Haven
2,758,000
Wales Total
Road goods vehicles passing through Welsh RoRo/Ferry Ports
The oil and energy sector traffic handled by Milford Haven,
the largest port in Wales, is of national significance to the
UK’s energy needs. In 2009 Milford Haven handled 39
million tonnes of oil, liquid gas and oil products, making
it the third largest port in the UK and the largest oil port.
A new LNG terminal has made it a market leader in gas
distribution, putting Wales on the map in a global sector.
Ports are also key in the development of sustainable energy
sources, with consented plans for two separate biomass
power stations in Newport and Port Talbot. The schemes will
be entirely dependent on the ports as they will be reliant on
the wood chip fuels brought in by ship.
The ports of Newport, Cardiff, Barry, Port Talbot and
Swansea on the south coast, all owned and operated by
Associated British Ports, handle dry and liquid bulk, forest
products, iron and steel products and some lift-on and
lift-off container traffic. The busiest of these is Port Talbot
which in 2009 handled over 5 million tonnes of cargo. ABP
ports in Wales support over 16,000 full time equivalent
jobs and generate £1.7bn in value according to a Welsh
Economic Research Unit Study carried out in 2009. Cardiff
Container Terminal has a weekly door to door service to
the Mediterranean as well as to Dublin and Warrenpoint,
carrying a variety of exports for Welsh manufacturers and
inbound raw materials and consumer goods.
Other important ports in south Wales include the Port of
Neath which handles 0.4m tonnes of cargo, including steel
products, scrap metals, animal feeds, salt and sand. The
port includes significant aggregates terminals operated by
United Marine Aggregates and Lafarge which each handle
around 0.1m tonnes of dredged sand/aggregate every
year. On the north coast the Port of Mostyn has specialised
in providing services for large manufactured equipment
such as wings for the Airbus A380 Super Jumbo. These are
made in the Airbus factory at Broughton in North Wales and
transported to France.
Number of vehicles and unaccompanied trailers in 2009
Cardiff
Fishguard
9,000
273,000
Holyhead
Milford Haven
09
34,000
68,000
In recent years, the Port of Mostyn has become a major
player as a base for offshore windfarm construction and its
support industries. It has been involved in the construction
of a number of major wind farms including the Robin Rigg
development in the Solway Firth.
The Crown Estate’s Offshore Round 3 development plans
will accelerate growth in the offshore sector. Mostyn,
Milford Haven and the ABP South Wales group are exploring
opportunities to expand in this important sector.
A range of smaller ports accommodate some important
fishing activity.
Fish landings, particularly shellfish landings, represent a
significant value to a number of Welsh ports. Although
the sector is not as large as in other parts of the UK,
fishing continues to provide essential local employment.
In 2009 almost 13,000 tonnes of fish was landed in Wales,
representing £17m worth in sales. Some is exported to
Europe, although much is sold and processed locally. The
busiest fishing ports are Holyhead Fish Dock, Milford Haven
and Fishguard.
10
Growth Markets - Leisure and Tourism
The growth of the leisure yachting sector in recent years
has been embraced by a number of smaller ports who have
invested in berthing and mooring facilities.
Wales is home to some of the best marinas in the UK and
coastal communities have benefitted from increased
tourism and spend from visitors. Smaller harbours
often form attractive tourist focal points. These include
Aberystwyth, Conwy, Menai Bridge, Penarth and Pwllheli as
well as the larger ports of Cardiff Bay and Swansea.
The varied Welsh coastline and its beaches make it a superb
and increasingly attractive centre for a wide range of water
activities. The most common include sailing, kayaking,
water skiing, canoeing, windsurfing, surfing, diving and kite
surfing, with smaller ports and harbours often providing an
activity base.
The Isle of Anglesey attracts over 1 million visitors each
year, generating more than £100 million a year for the local
economy and providing employment for over 3,000 people.
To fully capitalise on the increasing popularity of coastal
activities many smaller harbours and local authorities are
working to increase the availability and quality of existing
land side facilities, as well as the number of mooring and
onshore support facilities.
It is vital for the leisure sector that licensing and planning
bodies enable Welsh ports to capitalise on current demand
as well as the forecasts for future growth.
Another growth industry is the Welsh cruise sector. This
is represented by the Cruise Wales Organisation whose
members are Cardiff, Fishguard, Milford Haven, Holyhead,
Swansea and Newport. There are a number of investment
proposals to develop the cruise industry in Wales which in
2008 saw the first major cruise ship visit to Holyhead.
The arrival of a cruise ship can provide a major boost to
the economy. A cruise ship with 2,500 passengers is worth
in the region of £0.2m to the local economy. To support
growth, significant investment will be required in
alongside berths.
11
Improving Safety and Skills
The BPA and the UKMPG have strong links with Port Skills
and Safety (PSS), a national organisation which provides
advice on safety issues and promotes best practice
throughout the UK.
It has successfully launched a number of national safety
initiatives to minimise risks in the workplace and has formed
a strong alliance with the shipping industry and the trade
unions to promote high standards.
Safety levels are closely linked to levels of skills and
training. PSS is the Standards Setting Body for ports and
is developing a national programme of standards and
qualifications linked to colleges and training providers to
meet the needs of employers and employees. PSS builds
on the strengths of the ports network to promote
quality services.
12
Challenges Ahead
In 2009 the House of Commons Welsh Affairs Committee
produced a report on ports in Wales, taking evidence from
the industry and others and then making a number of
important recommendations.
One of the areas they identified was the mix of “reserved”
and “non reserved” issues; although ports policy is within
the remit of the Department for Transport, the report
acknowledged that there are many devolved policy areas
which have a major influence on port operations.
These include transport spending, economic development
and land use planning. It also found that whereas the
DfT is very much wedded to a market led industry, WAG
supported greater government engagement.
To resolve this the Committee recommended that
government at all levels must use its powers “in a
complementary and focussed way to achieve the agreed
outcomes that will lead to an expansion of the ports sector.”
The setting up of the Welsh Ports Group is an example of
where better co-operation can be fostered. The group was
created in 2009 and meets on a regular basis with DfT and
WAG officials. The group is still growing and the objective is
to develop a clear and strong voice for Welsh ports working
in co-operation with the Welsh Freight Group which has
already raised the profile of the port and freight industries.
An area that the Welsh Affairs Committee particularly
highlighted for greater government intervention was the
cruise market which can have an enormous impact on local
economies. More generally, the Committee felt that there
was spare capacity in Wales and ports were well placed to
develop feeder and short sea shipping services, offering an
alternative to road transport.
Common Travel Area (CTA) arrangements currently apply
to immigration controls and carriers liability for those
travelling between Wales and Ireland. The previous
government tried to remove the benefits of CTA status
and current intentions are uncertain. There is now some
confusion about the requirements being applied to
passengers, with ID required on some occasions and not at
others. We are committed to working with the UK Border
Agency (UKBA) to ensure that this vital trade and passenger
route is not compromised through inconsistency.
In 2010 WAG published a National Transport Plan for
Wales based on extensive consultation. We welcomed the
comprehensive nature of the plan which takes into account
carbon emissions, passenger transport and connectivity.
Many recommendations for interventions were made. A
critical issue for ports is the north and south east-west
corridors. For the south corridor there is still concern that in
spite of the welcome recognition of the importance of the
corridor and the need for improvement, plans remain very
long term to complete the route through to Pembroke Dock
and Fishguard. Plans are also susceptible to spending cuts at
a time when transport spending is under strong pressure.
There is a similar situation for North Wales, already
recognised as a Trans-European Network priority route, but
still not completed. Greater recognition should be given
to the potential value for money investments that these
networks represent.
The Eddington study published in 2006 made a particular
point about the high value of port links and the value of
smaller linking projects and improvements. As critical
decisions are taken on spending, we urge WAG to recognise
the importance of these east-west links not only for the
Welsh economy, but for the trade links they provide to the
Republic of Ireland and through the UK to the Continent.
This demands an outward looking approach, recognising
the sea as a link with the rest of the UK, Ireland and
the world.
13
Collective Aims
The Welsh Ports Group would like to work with the Welsh
Assembly Government and all other agencies, groups and
individuals to:
14
•
Maintain a regular dialogue with the Welsh
Assembly Government;
•
Create an efficient planning and marine
licensing system;
•
Achieve a mutual understanding of the needs
and value of a successful and vibrant Welsh
ports industry;
•
Protect the marine environment in a sustainable
way which balances environmental, economic and
social needs pragmatically;
•
Recognise that efficient road and rail links to
ports in Wales are essential for encouraging
economic growth;
•
Ensure that policy and legislation do not result in a
loss of competitiveness with other UK or
European ports.
Ports and Harbours Under the Welsh Ports Group Umbrella
Associated British Ports (Barry, Cardiff, Newport, Port Talbot, Swansea)
www.abports.co.uk
Caernarfon Harbour Trust
www.caernarfonharbour.co.uk
Carmarthenshire Council Harbours (Burry Port)
www.carmarthenshire.gov.uk
Ceredigion Council Harbours (Aberaeron, Aberystwyth, New Quay)
www.ceredigion.gov.uk
Conwy Council (Conwy)
www.conwy.gov.uk/harbourandseaboard
Isle of Anglesey Council Harbours (Amlwch, Beaumaris Pier, Menai Bridge)
www.anglesey.gov.uk
Gwynedd Council Harbours (Aberdyfi, Barmouth, Porthmadog, Pwllheli)
www.gwynedd.gov.uk
Milford Haven Port Authority
www.mhpa.co.uk
Neath Port Authority
01639 633 486
Newport Harbour Commissioners
www.newportharbourcommissioners.org.uk
Pembrokshire Council Harbours (Lower Fishguard, Tenby)
www.pembrokeshire.gov.uk
Penarth Quay Marinas
www.quaymarinas.com
Porthclais Harbour Authority
01437 720272
Port of Mostyn
www.portofmostyn.co.uk
Port of Penrhyn
www.portpenrhyn.co.uk
Saundersfoot Harbour Commissioners
01834 812094
Stena Line Ports (Fishguard, Holyhead)
www.stenaline.co.uk
15