LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 DALES VOE BASE BRITAIN’S PROJECT SUPPORT & OFFSHORE DECOMMISSIONING ‘TOP’ PORT 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 MISSION AND VALUES ............................................................ 4 CHAIRMAN’S STATEMENT .......................................................6 DREDGED TO 9.0m HEOGAN FISHMEAL CHIEF EXECUTIVE’S STATEMENT ..........................................8 & OIL FACTORY GREMISTA QUAY 2017 HARBOUR STATISTICS ...................................................9 FISH PROCESSING OUR BUSINESS ..........................................................................10 LERWICK NORTH MARINA HARBOUR OUR PEOPLE ............................................................................. 12 HEALTH, SAFETY, ENVIRONMENT AND QUALITY ......... 18 MAIR’S PIER BRESSAY NEW FISHMARKET LOCATION OBJECTIVES UPDATE .............................................................20 (COMPLETION 2019) 2018 OBJECTIVES & TARGETS ............................................ 22 RO-RO TERMINAL BUNKERING HOLMSGARTH QUAY SECTOR HIGHLIGHTS ............................................................. 24 F ER DREDGED TO 9.0m RY T SPOTLIGHT ON: FENDERING SYSTEM .............................. 32 O AB E MORRISON DOCK RD EE SPOTLIGHT ON: ORGANISATIONAL REBRAND ............. 34 CARGO JETTY N SHEARER’S QUAY ICE PLANT 2018 CAPITAL PROJECTS ...................................................... 35 BUNKERING SAY MARYFIELD SHIP REPAIR FERRY TO BRES COMMUNITY .............................................................................. 36 LERWICK LAURENSON QUAY FISHMARKET FERRY TERMINAL ALEXANDRA WHARF KEY HARBOUR INFORMATION 2017 ................................. 38 CRUISE SHIP HARBOUR OFFICE INNER ALBERT WHARF ANCHORAGE FINANCIAL PERFORMANCE AND ANALYSIS ..................40 VICTORIA PIER YACHT PONTOON SMALL DOCK LIFEBOAT STATION SOUTH HARBOUR BRESSAY SOUND COASTGUARD STATION BREI WICK The Knab LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 2 3 MISSION AND VALUES MISSION VISION CULTURE & VALUES STANDARDS TO CREATE THE CULTURE OF The Port Authority is entrusted to manage, What we work to deliver: Helpfulness – delivery of quality services in a • • LERWICK PORT AUTHORITY maintain and regulate the port and harbour of professional, friendly manner, our actions make Our Stakeholders – we provide modern, self-funded, Lerwick, in an efficient and safe way for the a difference. • port services to international standards, and strive Respect – treat others as you like to be treated yourself. benefit of all stakeholders. • for excellence. Skill and dependability – we are adept, experienced • Integrity and trust – be honest, trustworthy and fair To satisfy customers’ needs in the delivery of and versatile. • in all that you do • Our Customers – delivery of a quality service is competitive port services and be proactive in • innate; we create practical and innovative solutions Safety and Environmental awareness – embedded Ethical – be non-discriminatory and even-handed to identifying new opportunities which will sustain to any challenge. • into our way of working. • show equality. and grow the Shetland community. Our People – custodians of the Authority, our Engagement – listening and recognising when Commitment and Engagement – do the right thing, With 140 years of experience, to ensure the port and • Board Members and staff are engaged and • • be a team player and professional in your approach. action is required, we do the right things for the • its infrastructure remains relevant to future shipping determined to succeed. right reasons. generations and plays a key role in the economic life Proactive – be confident that it can be done and will Our Partners – we have high expectations and • be done, in a safe and efficient manner. of the islands. • continue to support partner organisations to grow. • Commitment – taking pride in our service and investing for the future to sustain the Authority for Responsible – take ownership and accountability of • your actions. coming generations. Communication – a two-way process, be responsible • for your communication and ask, listen and contribute. Attitude – a positive attitude based on confidence • and learned through gaining knowledge and understanding of yourself and others. LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 4 5 CHAIRMAN’S £28.5M QUAY PROJECTS STATEMENT INAUGURATED IN 2017 This is my first year as Chairman water and strong track record of Members in line with standard of Lerwick Port Authority, having decommissioning, has the ideal guidance. These and many other spent a number of years on the location for such infrastructure at topics discussed at our monthly Board, including two as Deputy Dales Voe. Board meetings keep us abreast Chairman. I was very pleased of all developments and allow us As ever, Lerwick is in the fortunate to be appointed as Chairman in to steer the strategic direction of position of having a diverse July 2017. the Authority. customer base and a highlight for In 2017, we enjoyed two landmark the year is the strong performance It is an honour to chair the Board events by inaugurating large by the leisure sector, especially of the Authority. The port is an capital projects completed. These cruise calls. Ferries and freight abiding interest of mine and a were the opening of Mair’s Pier remains a vital component in key part of the economic life and the Dales Voe quay extension port traffic, including increased of the islands. I wish to thank where we were delighted to view exports of fresh fish from Shetland. my Board colleagues, executive the Buchan Alpha project being Lerwick again showed its management team and all staff decommissioned at Lerwick. capabilities, with the largest members of the Authority transport ships berthing at the for their efforts and support These projects were significant port with modules for offshore throughout the year. milestones in terms of capital installation projects. projects completed, but rather than sit back and relax, the Governance of the Authority is team at the Port Authority the role of the Board and I am RONALD GAIR continues to look to the future pleased that we have made Chairman / June 2018 and what can be done next to good progress on various fronts improve the harbour for its throughout the year. Board users and stakeholders. Members have appreciated training days where they had Work has continued throughout the opportunity to interact with the year on the funding and other Trust Port boards. Of note procurement for the replacement is our Health, Safety, Environment fishmarket for Lerwick and I am and Quality processes which pleased to say that the have been upgraded and latest construction phase of the standards achieved. project has started in May 2018. This will be a significant benefit Our part ownership of external to the thriving white fish sector companies is kept under review at the port. and the decision has been made to take a property company It has become clear from in-house. Discussions continue discussions with stakeholders on a resolution to the expensive on offshore decommissioning defined benefit pension that there is a strong desire scheme currently in place at the for provision of an ultra-deep Authority. A new constitutional quay in the UK, as this is a gap Harbour Revision Order is being in the market. It is my belief that promoted in 2018 to modernise Lerwick, with its natural deep the appointment of Board LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 LERWICK PORT AUTHORITY ANNUAL REVIEW 2017-18 6 7 2017 HARBOUR CHIEF EXECUTIVE’S STATISTICS STATEMENT 4,896 926,827 £2M – – – VESSEL TONNES CARGO RENTAL ARRIVALS INCOME 2017 has seen a period of for the year. The Financial Position The pelagic fleet is also consolidation, with two new major at the year-end has improved • undergoing a period of renewal, quay projects now enhancing the resulting in a figure of £42.4m for with a number of local vessels 50,649 capability and capacity of the port. 2017 compared to £41.8m at 2016. sold and new builds due to 178,392 11.6M The Authority continues to invest replace them. However, pelagic – Activity levels were slightly down, as – TONNES – in its key infrastructure which now processing remains squeezed in expected, due to the continuing low oil PASSENGERS FISH LANDED GROSS TONNES stands at £76.5m at the year end. a weak international marketplace price which has meant that investment OF SHIPPING The Authority’s participation in a and throughput at the local in new offshore field development defined benefit pension scheme is fishmeal plant is low. has remained at a low level, impacting a challenge and an alternative is on project support from the port. The lifeline ferry service being explored. • £50.3M 54 However, Veolia Environmental contract has been extended until – 127,624 Services and Peterson UK winning October 2019 and the Authority – The Authority is continuing with its VALUE OF FISH MEMBERS – the Buchan Alpha decommissioning is pleased that the Scottish capital programme established in LANDED OF STAFF RO-RO project for Lerwick has been 2014, with the funding then secured Government is to tender the PASSENGERS heartening and, we hope, the first from Bank of Scotland for four ferry contract, rather than of a number of significant awards investments.