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Download the Full 2020 Annual Report HARWICH HAVEN AUTHORITY Annual Report and Financial Statements 2020 CONTENTS ANNUAL REPORT AND FINANCIAL STATEMENTS 2020 CONTENTS 4 About us 6 STRATEGIC REPORT 6 Statement by the Chair 8 Statement by the Chief Executive 18 Key financial indicators 20 Key performance indicators 22 Meet the Board 26 REPORT OF THE BOARD 38 REPORT OF THE EXECUTIVE 39 Meet the Executive team 40 Stakeholder engagement 52 Independent auditors’ report 56 Financial Statements 2 3 ABOUT US OUR VISION: Harwich Haven is a major trade gateway, which has been fuelling the UK’s economy since 1863. With five port facilities operating in the Haven area, our marine We aim to be an exemplary trust port services operate 24 hours a day, 365 days of the year. offering world class services, working with Structure and governance all stakeholders for a flourishing Haven Harwich Haven Authority is a trust include: employees, customers, port, which is a statutory body local residents, businesses, local and governed by legislation and managed regional community groups, and local by an independent Board. and national Government agencies. Strategic goals Our trust port status means we Our jurisdiction covers the River do not have shareholders, do not Stour, the lower part of the River 01 Delivering long-term financial sustainability receive public funding and operating Orwell, Harwich Harbour and a 12 surpluses are reinvested back into nautical mile stretch of sea leading the organisation for the benefit of into the Haven. 02 Be proactively engaged with external stakeholders our stakeholders. Our stakeholders 03 Sustain leading standards of safety of navigation 04 Attract and retain well trained and engaged employees 05 Protect and improve the environment of the Haven 4 5 STRATEGIC REPORT STRATEGIC REPORT STATEMENT BY THE CHAIR I take up my appointment as Chair of the Harwich Haven Authority Board after what has been a challenging year that has been dominated by the world-wide Covid-19 pandemic. Keeping trade flowing in to Haven ports was our key operational focus during 2020 and I am delighted that through the hard work and commitment of our teams we very much achieved our goal to keep the supply chain moving. As we look forward to 2021, coronavirus remains to this effect but we certainly can do more to very much with us and our mitigation to keep our transform our environmental impact. people protected and healthy are now a core part In closing I would like to take this opportunity to of our operational activity. Uncertainties about thank my predecessor Mr Jim Keohane who held the future do remain but with prudent financial the role of chair for eight years for the support planning and robust strategies in place we are and guidance he has given to the Authority during confident in our ability to continue offering high his two terms of office. We also said goodbye levels of service to our port operator stakeholders. to two Non-Executive Directors, Karen Purnell It is huge testament to our people that and Bob Crighton. Joining me on the Board at throughout the pandemic the Authority has been the beginning of my term of office is senior Shell able to continue to work towards achieving it’s Manager, Nicola Hancock. core strategic goals to protect, conserve and I also give my thanks on behalf of the Board to improve the Haven. Indeed, many of key long- everyone working at the Authority for stepping term projects have continued to be advanced, up to the challenge to keep Britain moving and and with our MMO licence now in place to carry supporting the wider UK economy during 2020. out major Harbour Improvements to deepen D Francis OBE the navigation channel and the harbour we look forward to commencing the works later this year. Our environmental impact remains a longer-term project for the Authority as we look to reduce our Chair carbon footprint. Much progress has been made 22 April 2021 6 7 STRATEGIC REPORT STRATEGIC REPORT HOW THE EXTERNAL INDUSTRY LANDSCAPE major ports at regular meetings to assist the government INFLUENCED OUR 2020 OPERATIONS… in developing national policies to keep ports open and STATEMENT BY THE AND OUR RESPONSES essential supplies of food and medical goods flowing into The global container market has enjoyed an unexpected the country throughout the pandemic. That these policies CHIEF EXECUTIVE boom in volumes throughout 2020 resulting from a worked well, and ports continued to function without significant growth in consumer demand caused by the constraints which we see as a huge success. almost total cessation of international travel for holidays. Keeping our stakeholders informed of how our business Ports around the globe have struggled to meet this surge is adapting during these challenging times also created in demand and global port congestion and particularly some problems. However regular video meetings with key For most of 2020 our business, like all others around the globe was dominated container supply imbalance remains an issue. stakeholders achieved this objective very well. by the growing Covid-19 pandemic. It affected customer demand and hence the These look to persist into 2021 and ports and carriers will SAFETY OF NAVIGATION amount of trade flowing into and out of the ports. continue to seek more efficient ways to process cargoes through the port for onward delivery to customers. Even in challenging times, our core duty of ensuring the I am immensely proud and grateful that our stead and our trades with Europe have continued Larger and deeper vessels on the lucrative China-Europe navigational safety of all of the uses of our waters remains employees embraced their roles as ‘critical almost without interruption, while the majority trades will increasingly play a major part in achieving these with us and I am pleased to report that we actually workers’ alongside other frontline workers of cargoes flowing through the Haven Ports efficiencies. Our response to the continuing trend towards improved our excellent record of navigation safety by across the country. The fact that we continued originate from China and were already covered by larger and deeper vessels is to deepen the approach recording a reduced number of marine incidents. Our to deliver our services to our customers without WTO tariffs. channel and the harbour to deliver unrestricted access to compliance with the Port Marine Safety Code throughout interruption, playing a major part in keeping trade the port to these vessels. In the Autumn we were delighted 2020 was confirmed by an independent auditor. The Port of Felixstowe was severely affected to receive confirmation from the MMO that our application and essential supplies flowing through the ports is by congestion at the end of quarter two of We continue to work collaboratively with Haven ports something that everyone at the Authority should for consents to carry out these works had been granted. 2020, which many other ports across the world facility operators and towage providers. We have be proud of. Contractors are currently submitting tenders to compete experienced. This resulted in some services developed joint training opportunities to further embed, to carry out this nationally and globally significant project, Our focused, long-term goals are aligned to our being diverted away from the Haven to other and work together, on safety and operational procedures with a view to commencing works mid-2021. (Go to page 46 trust port remit to protect, conserve and improve UK and European ports as the lines sought to to ensure that the new generation of mega-sized to read more about our critical UK project). the Haven for the benefit of all our stakeholders, minimise disruption to their services. As the year container vessels continue to call safely and efficiently at which provides the framework for our activity. progressed the challenges faced by PoF eased Meeting our customers’ needs with the highest level the Haven ports. Despite the challenges the pandemic brought to and congestion reduced significantly. Of course, of services remains our focus. The reduction in revenue Following on from our wide-scale, multi-agency our business we continued to forge ahead towards the reduced services in to the Port of Felixstowe caused by a fall in activity at the Port of Felixstowe left emergency exercise in 2019 (Adler 4) we have achieving our long-term strategic goals. adversely impacted our revenue, but through us with no alternative after we had exercised robust continued to develop further, and test our responses, In addition to Covid-19 we were also faced with prudent financial planning and strict cost control cost control measures, other than to increase charges to emergencies. Initiatives related to both emergency the uncertainties that our exit from the European we returned a year end surplus after tax to customers. Our general tariffs for our services were planning and business continuity are timetabled for 2021. Union would bring to our business operations. of £5.8m. increased by 5% at the beginning of 2021. WORKING WITH OUR STAKEHOLDERS We were confident that the Authority was well Despite the twin challenges of Covid-19 and Engaging effectively with our stakeholders remains a placed to meet both challenges and opportunities EU exit, Haven Ports operators of Felixstowe, major responsibility for the Authority. The Covid pandemic At the end of 2020 we joined with other local partners to that our leaving the EU would deliver as our Ipswich, Harwich International Port, Navyard and has introduced considerable challenge to this sphere support Hutchison in submitting a bid to create a Freeport relationship with our European partners changed. Mistley have adjusted well and have experienced of our operations – and the business has risen to these encompassing the Port of Felixstowe, Harwich International Our preparations have indeed held us in good a steady year of trading.
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