8 a performance


“solid” for


the


Issue 2 2018 - FBJ


///IRELAND Irish Continental forges ahead


Irish Continental Group (ICG) reported


financial year


ended 31 December 2017, in a preliminary statement published on 7 March. Revenue was up 3.0% to


€335.1 million (2016: €325.4 million) although earnings were down 3.0% to €81.0 million from €83.5 million in 2016. However, earnings per share


were up 40.4% to 44.1c, due partly to the sale of a vessel which yielded a profit after tax of €24.9 million Ro ro freight volumes were


up 0.5% to 287,500 units from 286,100 units


in 2016 while


cars carried went up 2.4% in the year to 424,000 units. Container volumes were up


5.9% to 321,400 teu. Chairman John McGuckian said that 2017 was: “Another successful


Brexit: Digesting the implications


Some of the best brains in the supply


chain industry are


attempting to get a handle on what Brexit will mean for Ireland’s supply chain. As well as the series of


supply


chain seminars (see separate piece), the Irish Manufacturers Association


has carried out


a study of the UK landbridge and its importance to the Irish economy. It is asking what the implications would be of extra transit time and whether shippers would seek alternatives. Besides possible delays, there


are also many other issues to consider, says Howard Knott, logistics


consultant at the


Irish Exporters’ Association (IEA). While some of the larger operators may be able to move complete truckloads direct from Ireland to the Continent, many freight operations currently use the UK as a point at which


to consolidate or deconsolidate cargo. For example two smaller shipments from Ireland for, say France and Scandinavia may be combined for the journey to a UK cross-dock, where they are separated and combined with other, UK-originating freight for their respective destinations. Would such an operation be feasible if the UK was no longer in the EU? Some operators are in fact


already experimenting with using hubs on the Continent in preference to the UK, he believes. Also,


many products in


Ireland are sold by distributors who also hold the UK agency. Again, what would be the future of this type of operation? “Even if the goods come direct to Ireland physically,


it could still be a


muddle,” says Knott. The Irish International Freight Association (IIFA) has


also been running an awareness campaign, encouraging traders to sign up for EORI numbers and also to consider starting the process of getting AEO accreditation, says executive officer Seamus Kavanagh. “We’ve had a good response, and people are getting EORI numbers,”


he says. Earlier


fears that the system might be inundated seem to be unfounded, he adds. The Irish Government has


though done a very good job in trying to prepare business for Brexit, IEA’s Knott continues, at least as far as is possible given the meagre information emerging out of Westminster. It’s also encouraging its exporters to take the opportunity to seek out new markets. Ports


too are preparing


themselves, says Knott. Dublin has recently revised its masterplan, partly because


of business growth but also to bring forward a scheme to move operations that don’t need to be within the operational area to a new site near the city’s airport. This will create valuable breathing-space if things get hectic aſter Brexit and could also be a site where consignments found to be problematical from


Eamonn O’Reilly was also


quoted in a recent Irish Times interview as saying that he was planning for a ‘hard’ Brexit. Work would start shortly on building booths, canopies, inspection areas and inspection sheds, effectively recreating the situation that pertained before the Single European Market, he


year for the Group. Despite the headwinds of increased fuel costs and weaker Sterling, the company delivered EBITDA (earnings before interest, tax and depreciation) of €81.0 million with revenues increasing by 3.0% to


€335.1


million.” This was achieved due to


the continued volume growth in all ICG’s operations, he said, adding: “In the next phase of the Group’s


are looking forward to the arrival of the new cruise ferry MV WB Yeats in summer 2018.”


says IEA chief executive Simon McKeever. Of all Irish companies that operate other than purely domestically, 93% export to the country or do business there, and for 44% of those, it accounts for more than a quarter of their business. Despite everything that


has happened, though, 41% of Irish firms are still planning to increase their UK business, compared with just 36% last year, and only 3% are planning to decrease it. Some 57% see no change. Where firms are planning


to diversify their business, they are mostly looking to near European markets


such


as Germany, France or Spain, though some are considering the US or Australia. Tellingly, though, customs


Brexit was not what the mural painters of Belfast’s Shankill Road had in mind, but it is a concern to business.


a customs point of view could be dealt with away from the busy port area. Dublin Port chief executive


said. However, there is no denying


the present, and no doubt future importance of the UK to Ireland,


issues have taken over from currency factors as firms’ biggest concern – perhaps a sign that the reality that the UK may be leaving the EU customs union is beginning to sink in, says McKeever. VAT is another worry – with the UK outside the EU customs union, this would have to be paid upfront on imports.


Port of Cork sees steady rise


Combined total traffic through the Port of Cork and Bantry Bay Port Company reached 10.3 million tonnes in 2017, up 8.6% compared to 2016. Cork’s container volumes through its Tivoli and Ringaskiddy terminals grew by 3.7%, with 217,763teu handled in 2017. Brittany Ferries recently


announced that a new twice weekly ro-pax route from Cork to Santander would start


in


April 2018. Chief executive Brendan Keating said: “The


current weekly route from Cork to Roscoff continues to strengthen and we look forward with great optimism to Brittany Ferries’ new service and the second call to Roscoff per week.”


In 2015 the Irish


government granted a 10- year planning permission for the redevelopment of Cork’s existing port facilities at Ringaskiddy. It will enable the port to deliver more efficient container handling


facilities, replacing the existing container terminal at Tivoli. BG Freight Line’s latest new


build MV BG Diamond made her maiden call in Cork’s Tivoli container terminal from Rotterdam on 23 January. One of four new ships capable of loading 45ft short-sea containers, she is the maximum size vessel for the terminal. Keating added: “BG Freight


Line is a longstanding customer to the Port of Cork and this new build vessel shows a further


commitment for our future relationship. Port of Cork is committed to


providing


modern infrastructure which will remove the current limitations at up-river berths. The new facilities planned for Ringaskiddy Port Redevelopment, Cork Container Terminal (CCT) will further improve the port’s capability to handle the growing lo-lo sector. CCT when completed will be the most modern terminal in Ireland and


will serve the regions shipping needs for many years to come.” The BG Diamond is fitted


with state-of-the-art features such as a modern wet scrubber system for exhaust cleaning which complies with Emission Control Area (ECA) requirements. Koert Luitwieler chief


executive of BG Freight Line said: “We are extremely proud that our first newbuilding, the MV BG Diamond is now deployed on our dedicated


route between Rotterdam and Cork. This is an important mark in the long history of BG Freight Line and will enable us to trade with highly fuel efficient and environmental friendly tonnage for the next decades.’ Keating added that while


Cork saw over 34,000 trade vehicles imported, and it remained a very important market,


this was in fact a


decrease over the previous year.


development we


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