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Business Review 2013 Milford Dock Master Plan the Visio N 3 1 0 2 w e i v e R s s e n i s u B Port of Milford Haven Business Review 2013 Milford Dock Master Plan the visio n... the development of a new waterfront destination focused on marine-leisure, retail and fishing. Port of Milford Haven Business Review 2013 1 Port of Milford Haven Business Review 2013 2 Port of Milford Haven Business Review 2013 Chairman’s Statement 5 Chief Executive’s Report 7 Health, Safety, Security and Environment 11 Marine Operations 17 Short Sea 19 Pembroke Port 19 Milford Dock Master Plan 22 Milford Fish Docks 24 Milford Marina 25 Cruise 27 Community Engagement 29 Trust Port 31 Stakeholders 33 Port Objectives and Strategy 35 Governance 36 Board Members 38 Senior Management Team 43 Financial Performance 46 3 Port of Milford Haven Business Review 2013 “As a Trust Port our core mission is to hand the Port on to future generations in robust health and as a strong regional driver of economic activity and growth ” 4 Port of Milford Haven Business Review 2013 Chairman’s Statement The Port of Milford Haven fulfils a vital role for the UK economy as one of its largest Port Marine Safety Code gateways for handling energy fuels. In 2013 the Port retained its position as the UK’s third With particular reference to marine operations, I am largest port with over six thousand shipping movements in and out of the sheltered waters pleased to confirm on behalf of the Board, which is the duty holder under the terms of the Port Marine Safety of the Haven. As the UK seeks to diversify its energy supplies, this creates particular Code, our continued full compliance with that Code. challenges for the Port which, in terms of its core operations, is almost exclusively focused The Future on the handling of bulk liquids such as petroleum products and LNG. Having joined the The level of uncertainty in relation to what will be the long Port as Chairman in 2013, I have rapidly come to appreciate that this is both our greatest term sources of energy for the UK remains. This, coupled strength and our biggest challenge. with substantial fluctuations in the pricing of energy in different international markets, will continue to have a As a Trust Port our core mission is to hand the Port on to Collaboration, both within the organisation and with significant impact on the Port’s business. We are therefore future generations in robust health and as a strong stakeholders including all of our customers, large and cautious about the prospects for an uplift in our deep sea regional driver of economic activity and growth. Whilst the small, has also been a critically important building block business. Nonetheless, the Port continues to play a scale of our deep sea operations is impressive, our plans for for the Port. Finally, and most importantly, I have been significant role in the Welsh and UK economy, sustaining diversification remain focused on the prospects for new particularly impressed by the practical safety culture substantial levels of employment across the region. The trade and development at Milford Dock and Pembroke established throughout the organisation and with our Port has a strong Board and management team and Port. The development proposal for Milford Dock is an service partners such as Svitzer and the major terminals. sufficient cash resources to enable it to invest and adapt as exciting prospect which, if fully realised, will see Milford This is particularly important for a port operating as we do the UK enters a period of economic recovery. We do Dock consolidate its position as Wales' largest fishing port, as an integral part of a special area of conservation, therefore face the future with confidence that we will meet and become established as one of the major destinations handling ships which are amongst the largest moving the challenges that lie ahead. for residents and holiday visitors to Pembrokeshire. We are objects on the planet. now undertaking similar masterplanning in relation to In the few months that I have been in the Chair I have In August 2013, I took over from David Benson as Pembroke Port with a view to developing it into one of the been greatly impressed by the dedication of the staff here Chairman. Having completed his two terms as Chair, best facilities on the UK’s west coast for serving the marine at the Port of Milford Haven. I would like to thank them for David left the Port in a strong position and well known renewable energy industry. their continued commitment in ensuring this Port remains as the UK’s energy gateway. Under his leadership the a safe place to do business every hour of every day. Our challenge in Pembrokeshire is its remoteness from the Port saw the completion of two major LNG terminals UK’s main population centres, but as a Trust Port we are involving more than £5bn of private sector investment. able to take a long term view and bring to bear our skills, He was also instrumental in steering the Port towards our knowledge, and critically, our values, to turn long term investment in other opportunities under the Port’s plans into a present reality. The Port of Milford Haven has control, such as infrastructure at Milford Dock and always succeeded on the basis of its expert and Pembroke Port, which will open up prospects in the professional knowledge as a port operator. Being the best tourism and renewable energy markets. On behalf of and most knowledgeable at what we do individually as the whole port community, I would like to thank David Peter Jones marine operators, pilots, engineers, stevedores or any of for his dedicated efforts and contribution. the other roles encompassed by our activities, has earned the respect given to Milford Haven as a successful port. 5 Port of Milford Haven Business Review 2013 “The Port’s investment programme remained focused on its port facilities at Pembroke Port and Milford Dock ” 6 Port of Milford Haven Business Review 2013 Chief Executive’s Report The Port of Milford Haven’s core short sea and deep sea operations produced a better than expected result in 2013 generating a group turnover and operating profit, excluding joint ventures, of £22m and £3.5m respectively. This resulted in the generation of operational cashflow available for investment of £5m for the year, despite reduced levels of LNG shipments. The performance in the Port’s core business was however impacted by £2.7m of cumulative write-offs and share of losses in relation to our investments in the separate legal entity Mustang Marine (Wales) Limited. Notwithstanding this setback, the strategy to facilitate the development of a marine and renewable engineering cluster based at Pembroke Port remains unchanged. Indeed the Port has reached agreements with successor companies as tenants and operators of the facilities at both Pembroke Port and Milford Dock and is looking forward to working with these companies as they set out to grow their businesses and bring new trade and economic activity into Pembrokeshire. Deep Sea trying to secure a buyer willing to operate the Murco refinery. However, thankfully, the recent announcement is Whilst overall volumes remained fairly stable for the Port in very positive and, when delivered, will safeguard four 2013, the international trading conditions for operators in hundred jobs. Any cessation of refining at Milford Haven the UK refining sector were challenging. The shale gas and would have a very significant impact on the Port and the oil boom in the United States has served to substantially wider economy, bearing in mind that the industry around improve the international competitiveness of US refineries. Pembroke Dock and renewed its ice making plant at Milford the Waterway supports over four thousand jobs in As industrial consumers of energy in the US have set out to Dock in support of its re-invigorated activity as Wales’ largest Pembrokeshire and five thousand in Wales. In light of this, switch to cheap shale gas, US coal producers have cut their fishing port. The solar array is now fully operational and the the Port of Milford Haven has initiated a strategic review to prices and increased their exports leading to the greater Dock Lock project, which is expected to be completed ensure that if it does become a smaller business, it will use of coal, including Russian coal, for generating during 2014, will secure Milford Marina’s place as one of the continue to be able to invest to maintain its operations and electricity in the UK, despite national carbon reduction most accessible locked marinas in the UK, set amongst diversify its income stream. objectives. Whilst the Port of Milford Haven has no sheltered waters and beautiful countryside. influence on these global shifts in the sources and pricing Short Sea During 2013 the Port made considerable progress on of different forms of energy, it has been, and will continue The Port’s investment programme remained focused on its bringing to fruition plans to develop Milford Haven into to be, very significantly affected by them. port facilities at Pembroke Port and Milford Dock. Two one of Pembrokeshire’s leading waterfront destinations. In the face of these challenges and to ensure it will always major projects got underway in 2013, namely the The Milford Dock Master Plan is expected to stimulate up have the ability to respond to the need for change, the construction of the EU-backed Dock Lock project and the to £70m of new investment. A number of discrete Port made the maintenance of a strong balance sheet a development of a 5MW 20,000 panel solar array at developments in currently underused areas of the Dock will core part of its strategy.
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