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Issue 2 2018 - FBJ


///IRELAND Politicians – who needs them?


Politicians in Westminster and Stormont may be unable to agree on anything right now – whether Brexit or getting the Northern Ireland assembly up and running again – but the local economy seems to be managing very well without them, says Quay Cargo’s Gary Stewart. “The port of Belfast is handling


record traffic, the economy is growing and unemployment is as low as it has ever been,” he enthuses. That isn’t to say that he and his


customers are not perplexed by wider issues, particularly Brexit. Many of Quay Cargo’s customers are small firms, who have got into exporting gradually, and suddenly imposing the need for customs clearance on shipments to or from Europe could be a bit of a shock compared with the freedom of movement that they currently enjoy.


“I think we might take a step


back before we take the next two or three steps forward,” says Stewart. “No one can tell us what


will happen, whether we will have new trade deals with China and the like. All we can do is react to situations and be adaptable.” But he is confident that come


what may, Northern Ireland businesses will succeed in the new environment. “The word ‘must’ is an amazing taskmaster,” as he puts it. Meanwhile, some of Northern


Ireland’s agri exports have been doing well, partly due to the weakness of Sterling. Quay Cargo has been the


Northern Ireland agent for German-owned container shipping giant Hapag Lloyd for the past 12 years, so in fact 85% of its business is non-EU anyway, although it also offers a comprehensive trailer groupage service throughout Europe. Customers export to all over the


world and the range of services Hapag offers has recently been enhanced following the merger with UASC, with new or improved links to East Africa and South America, for example.


All the container business is fed


by shortsea vessels to and from the main UK and Continental ports. This is something of a limiting factor, in Stewart’s opinion, as the range of connections available from Belfast – as opposed to Dublin – is quite limited. “Yes, you can send a box to Dublin if it’s urgent, but there is a cost and shippers’ don’t always want to pay it. And it can be frustrating if a feeder service is cancelled.” However, given the relatively limited amount of Belfast business, the current range of services is perhaps what the market will bear. Exporting businesses include


large companies like Terex, Caterpillar or Bombardier, right down to


small family firms


making, perhaps, textiles or engineering components. It’s the smaller firms that have been most affected by the Brexit vote, says Stewart. “A firm that might have been considering £2m on a new production line, all of a sudden is not making that decision, so that’s where we’ve seen a bit of a stalling.”


One or two larger firms have also


cut back their operations. Michelin is closing its truck tyre factory this year and vehicle maker Wrightbus is laying off 95 staff. However, the cloud of punitive US sanctions that had been hanging over plane- maker Bombardier has been liſted, at least for now. Stewart says: “With a total


throughput of 127,000 containers at VT3 terminal here in Belfast, this is not a massive market, so if we do lose someone like a Michelin, we feel the draught. There is no one account that could ever replace something like that.” Few of the major global


container lines have their own offices in Northern Ireland, apart from MSC. Many do though have a direct presence in the rather larger southern Irish market, including Hapag Lloyd. Shipping lines have


been


relatively slow to set up their own offices in the province. It’s partly a legacy of the Troubles, but also because of the small size of the market. “It is still seen


P&O Ferries gets the Larne connection


The new A8 dual-carriageway road link to Larne, opened in 2016, has been a game-changer for the port, says P&O Ferries head of freight for the Irish Sea, Kim Swan.


Cairnryan, is still owned by P&O Ferries is in the right place at the right time, Swan says. It had a record year for freight and passengers in 2017. “The ferries


port of choice for self-drive freight, although unaccompanied units do make up 35% of the business even here – a result, Swan says, of the driver shortage which can make it


at Larne, the port does handle bulks in coasters and there is also a laydown area for offshore windmills. The two ro-pax vessels, European


the Causeway and


European Highlander, each with a freight capacity of around 100 pieces, have maintained the Larne- Cairnryan link since about 2000. The vessels have been refurbished internally and include dedicated driver’s lounges and restaurants and reclining seats – although there are plans to replace these with ‘flat bed’ versions. In keeping with these egalitarian times, there are female as well as male driver showers. P&O Ferries will probably look


Trucks can drive off the ferry there and be on the main road system within minutes, and there are only a couple of roundabouts to negotiate between there and Belfast, plus a further two, and one set of traffic lights, all the way to Dublin. There is also a passenger rail


link right into the port of Larne, and although it has not carried freight for many years, the potential is there if a suitable traffic presents itself. Larne which, along with


really are the workhorses of the whole economy,” she argues. The ships carry each and every


type of freight, from express parcels to temperature-controlled perishable and bulk agricultural produce. On the day of our visit to Larne, there was even a farm tractor towing a trailer boarding the European Causeway en route to Scotland. With a crossing time of only two


hours – the shortest on the Irish Sea by a ferry with freight capacity - and seven sailings a day, it is the


more cost-effective for firms to ship trailers over as drop units rather than tie up a driver even for a few hours. Unlike many other UK ports,


Larne and district has plenty of space available. A number of road hauliers have bases on the port estate, Asda’s main distribution centre for Northern Ireland is nearby and, says Swan, “we are always willing to talk to companies interested in doing port-centric distribution.” While ro ro is the main traffic


to replace the ships in around 7-8 years’ time, but they will serve the needs of the route very adequately until then, Swan considers. She is also responsible for P&O’s


Ferries Dublin-Liverpool three-ship freight service. Here the picture is clouded to a much greater extent by Brexit, but it will be considered for new tonnage in due course. P&O would even consider direct


services between the south of Ireland and the Continent, should circumstances and the market make that desirable.


as something of an ‘eccentric’ business environment here,” says Stewart. However, multinational shipping and forwarding firms have taken an increasing interest. Many of the old names such as Ewings, Hamilton and Campbell Freight have been bought out by larger UK or global concerns. “The presence of the


multinational 3PLs has changed the landscape here a bit for us,” Stewart says. One of Quay Cargo’s selling


points is its closeness to the port. Even in the age of cyber- communications, you can still learn a lot from being able to actually see the ships – and trucks – arrive, which Quay Cargo certainly can from its offices on West Bank Road. It’s also handy for customers who need to drop off physical documentation. “We could have had a cheaper


office five miles out of town, but that wouldn’t serve us so well,” Stewart explains. Quay Cargo’s latest expansion


has been setting up a container storage and husbandry operation in partnership with William Reed. It allows containers to be unstuffed and the contents loaded onto trucks away from the busy port area, in effect a “long stay car park” for the port. Quay Cargo has been steadily


increasing its staff size, currently 15, possibly increasing to 16 this year. The company had a very successful arrangement with Ulster University for ten years, with international trade and transport students doing a one-year internship with the company in addition to their three years’ academic study. Five people have joined the


company through the scheme and Stewart has been extremely impressed with the calibre of the students, but unfortunately, the university has now decided to discontinue


However, the company is now talking to another local college with a view to setting up an apprenticeship scheme instead.


From Newry to the world


Starting from a small office on the high street of Newry, County Down as a distributor for P&O Ferries (Freight) for Ireland Northern Ireland & Scotland, 15 years ago, Motis Ireland has now grown into one of Europe’s leading supplier of services to the transport industry. Whilst still very focused on


its core business of providing freight ferry bookings to transport operators, its geographical reach and product portfolio, have expanded significantly. Geographically, Motis


recognised the growth in the haulage sector in the East at an early point and is now present throughout the UK with offices in Newry, Stoke-on-Trent, Folkestone, Dover, Antwerp, Prague, Poznan, Vilnius and Bucharest as well as a strong partner base outside of these regions. In addition, the company


provides simple and cost-effective solutions for paying motorway tolls throughout Europe, Alpine Tunnels and ‘rolling highway’ driver accompanied rail services. In the last five years, Motis has also recognised the demand from


hauliers for secure truck parking in the south east of England and has invested significantly in a 350 truck space facility within the port of Dover. Not only is this on what is quite possibly the busiest stretch of road in Europe for international hauliers, but it also provides much more than the average truck park. The usual driver facilities are


of course on hand (showers, laundrette, restaurant, cinema lounge, shop and truck wash), but there are also many more operational benefits on site such as cargo handling, storage, cargo distribution/collection, vehicle reparation, document exchange, customs clearance, HGV Levy payment and Dartford crossing payment. Motis has already earmarked


a number of other sites for development to offer similar facilities in the UK and Continent. In 2017, Motis acquired a stake in


a Belgium based VAT reclamation and fuel rebate reclaim specialised, Eneman Brugge. Many Motis customers purchase services from the company that include European VAT.


the course.


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