Annual Report & Accounts 2019 www.belfast-harbour.co.uk Annual Report Chairman’s & Accounts 2019 Statement 03 Chairman’s Statement 06 Board Member Profiles 09 Commissioners’ Attendance 10 Executive Team The first half of 2020 has seen the COVID-19 Profit, turnover and cash flow were in line with crisis result in an unprecedented interruption expectations and reflected the changing mix 12 Chief Executive’s Review to our daily lives, changing the way that we of business. Turnover at £65.9m was down live and work and no doubt will bring about slightly (4%) and operating profit at £30.6m significant social and economic change after was down 15%, largely reflecting the impacts it ends. of the completion of offshore windfarm 18 Belfast Harbour contracts and the ongoing reduction in and the Community First and foremost, I want to take this power station coal. The wind farm lease of opportunity to put on record the gratitude our D1 facility has ended and this quayside of the Board and the staff at Belfast Harbour is now being used for cruise ships and to the key workers across all sectors who 19 Belfast Harbour other activities. have continued to work tirelessly for us all. and the Environment I want to pay particular tribute to the key Trade through the Port remained strong, workers of Belfast Harbour and our with more than 24m Tonnes of cargo customers who maintained port operations handled for only the second time in our 20 Strategic Report and ensured that the goods which keep history. Passenger numbers exceeded life going in Northern Ireland – such as food, 1.5m for the third year in a row, there were fuel, medical and essential supplies – a record number of freight vehicles (up 4% continued to flow every day. to 542,000) and exports of aggregates rose 22 Risks and Uncertainties by 4% to 1.6m Tonnes for the first time. As a port, we have comprehensive business Cruise ship activity continued to grow with continuity plans and resources, hoping that 280,000 visitors during the year. they will never have to be used in real life. It is 23 Corporate reassuring that the deployment of these plans The Board was also very pleased with the Governance Statement has allowed Belfast Harbour to continue to progress being made on various projects to operate safely and effectively during this transform our business and cater for the recent crisis and that the Harbour community emerging needs of our regional economy. collectively rose to the challenges faced. During 2019 there was capital expenditure 26 Corporate Matters of £44.8m, on a range of port and estate As we reflect back on Belfast Harbour’s projects. In Port Operations there were performance during the 2019 financial investments totalling £40m, to upgrade and year we are acutely aware of the impact automate our container terminal at VT3 and 28 Trade and 24m that the COVID-19 crisis is having on our to prepare VT2 for the introduction, by Stena Shipping Statistics Tonnes of Port customers and all aspects of life and Line, of larger, more sustainable and modern cargo handled the economy. However, it is reassuring to vessels on its Belfast-Birkenhead route. “ First and foremost, I want to take know that as we prepare for the post crisis 29 Annual Accounts recovery, that our performance and Within our growing Harbour Estate a this opportunity to put on record progress in 2019 provides a strong 900-space multi-storey car park was the gratitude of the Board and platform to move forward. completed and work began on City Quays 3, £40m which will be one of Northern Ireland’s largest From a financial perspective, Belfast Harbour ever Grade A office buildings. It is encouraging the staff at Belfast Harbour to invested in had a sound performance in 2019 and to note that the last remaining Grade A office port operations the key workers across all sectors.” finished the year with a strong balance sheet. space at City Quays 2 building was occupied. 2 3 Annual Report Chairman’s Statement & Accounts 2019 Continued During 2019 Belfast Harbour launched Belfast Harbour is already leading the way the latest stage of its strategy ‘A Port for as the first port in the UK and Ireland to Everyone’ which details our vision out to trial practical applications supported by 2035 and our plans to become the best the new 5G mobile network. We have regional port in the world, making Belfast partnered with one of the world’s smartest Harbour a key gateway for trade, ports, Rotterdam, to develop new ways tradeable services and tourism. This will to share information and collaborate with include further developing the Harbour as our customers. a key economic hub for the region and creating an iconic waterfront for Belfast We also established a Responsible Business which is an attractive and safe place to and Stakeholder Committee to oversee the live, work, visit and invest. formulation and delivery of Belfast Harbour’s Responsible Business Strategy. This Our plans were developed in anticipation committee also considers actions to further that the rate of societal and economic enhance Belfast Harbour’s workforce change will continue apace – driven by diversity and inclusion agenda. the decarbonisation agenda and the changing shape of the economy with Looking Forward growth in tradeable services such as media and ICT, plus the rapid evolution The impacts of the COVID-19 pandemic on of technology and continued growth in trade and the economy are significant and tourism and leisure activities for which widespread and at this time are still being the Harbour Estate already is a key assessed. Added to this will be the impact regional destination. We now have added of Brexit. Belfast Harbour’s sound financial the impact of the COVID-19 pandemic position and intact capabilities will allow us as a further driver of change. While the to continue to play a key role in helping drive pandemic may influence some of our the local economy and helping address the short and medium term priorities we key challenges from COVID-19 and Brexit, believe that the long term goals of our working with our customers and key partners strategy largely remain valid. to get the economy back on track. Key to the delivery of our ambitious The current forecasts indicate that our plans is close collaboration with our business will see reduced income, profit customers and a number of partners and cash flow in 2021 but will remain cash including Belfast City Council, Titanic positive. While we will continue to invest Quarter Limited, our two Universities, in opportunities to improve our infrastructure Catalyst, Northern Ireland Screen, and capability it will be necessary to Odyssey Trust, Tourism NI, Visit Belfast reprioritise our plans in line with the new and the Department of Infrastructure. reality post the pandemic and our reduced Together our goal is to create a vibrant cash flow. Among the many lessons that economy and long-term opportunities the pandemic has taught us so far, it is for good jobs and a better way of life that we are stronger together, and together for our citizens. we can overcome significant challenges and succeed. Further details of our plans are contained within this report, and we have set a ‘A Port for target of building upon our existing environmental work to become the greenest multi-purpose port anywhere in Dr David Dobbin, CBE these islands and beyond, and to utilise Chairman SMART technology to deliver even Everyone’ greater levels of efficiency and flexibility. Details our Vision out to 2035 and our plans to become the best regional port in the world, making Belfast Harbour a key gateway for trade, tradeable services and tourism. 4 5 Annual Report Board Member & Accounts 2019 Profiles 1. Dr David Dobbin CBE 3. Kyle Alexander OBE 6. Councillor Sonia Copeland David was appointed to the Board in Kyle was appointed to the Board in Councillor Copeland is a full-time 1 2 3 2012 and took up the position of February 2016. He has considerable member of Belfast City Council. She is Chairman in 2015. He has extensive experience in delivering urban her party’s group leader in City Hall, board level experience across the regeneration, having been Chief representing the Titanic Electoral Ward. private, public and voluntary sectors Executive of Laganside Corporation and is actively involved in promoting which was responsible for the She is a member of the North regional economic development. transformation of Belfast’s waterfront Foreshore Committee, the Licensing He is currently Chairman of Firmus and Cathedral Quarter. He stepped Committee, the East Belfast Area Energy and a member of the KPMG down as Chief Executive of Maze Long Working Group, the East Belfast Northern Ireland Advisory Board. Kesh Development Corporation in Policing and Community Safety March 2017, having overseen the Partnership, the Waterfront and Ulster David has wide industrial experience establishment of the organisation. Hall Ltd Shareholders Committee, the 4 5 6 having previously held a number of Kyle received an OBE for services to Chair of the Older Persons Reference Profiles senior executive roles in Dale Farm, regeneration in Northern Ireland in 2007. Group. She has recently been Boxmore International, Dalgety, C&C He is a Fellow of the Royal Institute of appointed onto the Board of Governors and Rothmans International. He has Chartered Surveyors. for Ashfield Girls School, Braniel also served as Chairman of a number Primary School and McArthur Nursery of organisations including: Dairy UK, Kyle’s ongoing commitment to ensuring School, as well as appointed onto the Ulster Rugby Management Committee, social benefit from regeneration is Board of the Grand Opera House Trust.