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LERWICK PORT AUTHORITY ANNUAL REVIEW 2019-20 DALES VOE BASE BRITAIN’S PROJECT SUPPORT & Offshore Decommissioning ‘TOP’ PORT

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LERWICK PORT AUTHORITY ANNUAL REVIEW 2019-20 DALES VOE BASE BRITAIN’S PROJECT SUPPORT & Offshore Decommissioning ‘TOP’ PORT LERWICK PORT AUTHORITY ANNUAL REVIEW 2019-20 DALES VOE BASE BRITAIN’S PROJECT SUPPORT & Offshore decommissioning ‘TOP’ PORT Scrap metal recycling and decommissioning Open storage and laydown sites SHETLAND ISLANDS COUNCIL INCINERATOR Waste-to-energy plant Recycling plant CONTENTS GREENHEAD BASE DREDGED TO 9.0m Project support & offshore decommissioning COVID-19 (CORONAVIRUS) UPDATE ............................ 4 Salmon processing MISSION AND VALUES ...................................................... 6 DREDGED TO 9.0m HEOGAN FISHMEAL CHAIRMAN’S STATEMENT ................................................ 8 & OIL FACTORY GREMISTA QUAY CHIEF EXECUTIVE’S STATEMENT ................................. 10 Pelagic fish processing 2019 AT A GLANCE .............................................................12 LERWICK NORTH MARINA HARBOUR OUR BUSINESS .................................................................. 13 OUR BOARD ...................................................................... 14 MAIR’S PIER BRESSAY NEW FISHMARKET OUR PEOPLE ..................................................................... 18 HEALTH, SAFETY, ENVIRONMENT AND QUALITY ... 20 RO-RO TERMINAL BUNKERING HOLMSGARTH QUAY OBJECTIVES AND TARGETS UPDATE .......................... 24 Livestock & cargo operations DREDGED TO 9.0m FE SECTOR HIGHLIGHTS ...................................................... 28 R R Y MORRISON DOCK T O SPOTLIGHT ON: DECOMMISSIONING ......................... 30 K IR SHEARER’S QUAY Ice plant K W A COMMUNITY & STAKEHOLDERS .................................. 32 L L / Bunkering A B RY TO BRESSAY MARYFIELD ship repair E FER KEY PERFORMANCE INDICATORS 2019 ..................... 34 LAURENSON QUAY R FERRY TERMINAL LERWICK D E E ALEXANDRA WHARF N FINANCIAL PERFORMANCE AND ANALYSIS ............ 36 Harbour office INNER ANCHORAGE ALBERT WHARF FINANCIAL STATEMENTS .............................................. 38 VICTORIA PIER Yacht pontoon SMALL DOCK Lifeboat station SOUTH HARBOUR BRESSA COASTGUARD Y SOUND STATION BREI WICK The Knab SOUTH ANCHORAGE ANNUAL REVIEW 2019-20 ANNUAL REVIEW 2019-20 2 3 COVID-19 (CORONAVIRUS) UPDATE The emergence of Covid-19 Within the main sectors at Oil & gas traffic through and the subsequent disruption Lerwick, the roll-on/roll-off the port has significantly in 2020 is having a significant passenger and freight sector reduced, with the crash in impact on trading at Lerwick initially dropped significantly, oil prices bringing further Harbour during the first part of with only essential travel and challenges for all companies the year and this is ongoing. reduced sailings. The service involved in this sector. is expected to show signs During the period, we have soon of a return to more The cruise sector is being put in place, and are following, normal levels, although the severely impacted, with plans to ensure that we protect vessels continue to operate cruise lines unable to sail and our stakeholders, staff, port at lower passenger capacity. undertake operations. There is users and the community while a strong outlook in this market continuing to operate in a safe Fish landings initially fell by beyond 2020, but the recovery and efficient manner. Lerwick large amounts. However, the of this important industry Port Authority continues to fishmarket has remained is currently very uncertain prepare for recovery, albeit operational throughout. and likely to be lengthy. with reduced revenue streams. Landings are now returning to better levels, but will be The remainder of 2020 will unlikely to recover fully during June 2020 bring many more challenges the remainder of 2020. to the port, our colleagues, customers and islanders. ANNUAL REVIEW 2019-20 ANNUAL REVIEW 2019-20 4 5 MISSION VISION VALUES MISSION The Port Authority is entrusted to manage, Our Stakeholders Helpfulness maintain and regulate the port and harbour Provide modern, self-funded, port services to Delivery of quality services in a professional, of Lerwick, in an efficient and safe way international standards, and strive for excellence. friendly manner, our actions make a difference. AND for the benefit of all stakeholders. Our Customers Skill and dependability It is required to satisfy customers’ needs in Delivery of a quality service is innate; we create We are adept, experienced and versatile. VALUES the delivery of competitive port services practical and innovative solutions to any challenge. and be proactive in identifying new Safety and Environmental awareness opportunities which will sustain and grow Our People Embedded into our way of working. the Shetland economy and community. Custodians of the Authority, our Board Members and staff are engaged and determined to succeed. Engagement With more than 140 years of experience, Listening and recognising when action is required, it is tasked to ensure the port and its Our Partners we do the right things for the right reasons. infrastructure remain relevant to future We have high expectations and continue to shipping generations and play a key role support partner organisations to grow. Commitment in the economic life of the islands. Taking pride in our service and investing for the future to sustain the Authority for coming generations. ANNUAL REVIEW 2019-20 ANNUAL REVIEW 2019-20 6 7 CHAIRMAN’S STATEMENT I am delighted to present Work towards completion on Lerwick, being one of the my third Annual Report our new whitefish market was first UK ports to achieve and as Chairman of Lerwick a personal highlight during maintain the international Port Authority though, as the year. The development, standards of ISO 9001, I have been writing this which is to be completed ISO 14001 and ISO 45001, statement, we are all facing in August 2020, will bring is a testament to the the challenges relating to the significant benefits to the dedication, management Covid-19 pandemic, with all expanding sector at the and implementation of our areas of the our operation port. With doubled landing safety culture throughout being severely affected. capacity and a design based the organisation. on efficiency and a reduced Reviewing 2019, Lerwick’s environmental impact, this A new constitutional Harbour strong position of having a investment will maintain the Revision Order, which diverse customer base from port at the forefront of the has taken the port in line different sectors operating important fishing industry. with standard Trust Port to-and-from the port has guidance on the recruitment again paid dividends, with Financial support from of Board Members, is in steady landings of whitefish, Bank of Scotland, European place, with experienced ongoing decommissioning Maritime and Fisheries Fund appointees in 2019 giving a projects and continued and Highland and Islands knowledgeable contribution. growth in the cruise sector. Enterprise has been crucial to the port’s success, with I would like to thank all the Future investment by the continued backing vital to members of the Board and Port Authority for the our future achievements. port colleagues for their hard decommissioning industry work and the great service will allow Lerwick to maintain Health, safety and they provide our stakeholders, and develop our position at environmental management especially so during this the centre of this growing has remained at the core of unprecedented time. sector, including the largest all port activities. Our safety decommissioning project yet to culture is a key focus for the be handled at Lerwick, due in Board, and we continue to RONNIE GAIR summer, 2020. The topside of be satisfied that the harbour Chairman / June 2020 the Ninian Northern platform meets the requirements of is to be delivered to Dales Voe the Port Marine Safety Code. Base in a single piece, and will provide long-term employment for many within the supply chain based in Shetland. ANNUAL REVIEW 2019-20 ANNUAL REVIEW 2019-20 8 9 CHIEF EXECUTIVE’S STATEMENT I am pleased to have the While the number of whitefish Decommissioning continues opportunity to write this report boxes landed reduced in 2019, we to be a growth strand of the for the 2019 Annual Review for are optimistic of increased future oil & gas sector at Lerwick. Lerwick Port Authority. It is, opportunity with the extra capacity The decommissioning of the of course, overshadowed by the replacement fishmarket will former Buchan Alpha floating the Covid-19 pandemic, which allow. Whitefish landings in the port production unit continued is affecting all of our lives as were down by 8.0% on the 2018 throughout 2019. Preparations we progress through 2020. record, with 230,081 boxes in 2019. were underway, including further investment by the Authority Throughout 2019, we continued Overall gross tonnage of shipping in a new decommissioning to receive support from our wide showed a slight decrease of 1.8% pad at our Dales Voe Base, in range of port users, resulting in to 12.6m gross tonnes, and overall preparation for the arrival of the year producing improved vessel arrivals were down to 5,068, the Ninian Northern platform financial figures for the Authority, a decrease of 3.0% on 2018. topside in 2020. The recently- with turnover increasing to £11.65m extended quayside at Dales Voe, from £10.90m in 2018. Profit- The cruise sector at Lerwick designed to take the very large after-tax for 2019 increased to continued to grow, with a record loadings associated with a single- £2.97m from £1.78m in 2018. 99 cruise vessels arriving in 2019, lift structure being transferred up from 91 in 2018. However, to shore, was a catalyst
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