Chronic underinvestment will leave Irish ports unable to cope with the rapid expansion in trade, according to a study published by business lobby Ibec yesterday. Marc Coleman, Economics Editor, reports.
Ibec transport policy director Reg McCabe said inaccurate Government forecasts for growth in freight trade had led to underinvestment in ports.
The Ibec report, Can Containers Deliver, argues that growth in the Republic's load-on load-off (lo-lo) trade - which requires container terminal facilities - expanded by 23.5 per cent between 2001 and 2004, compared with 14.5 per cent for roll-on roll-off trade. The report says trade will continue to grow rapidly, citing forecasts by the UK department of trade and industry that the Republic's trade will grow by 110 per cent, faster than any other part of the world, between 2004 and 2015.
Progress on expanding port facilities has to date been inadequate, Mr McCabe said.
"It is not acceptable for Government to adopt a policy of benign neglect with regard to ports investment," he said. "We are an island economy, where prosperity is almost totally linked with the expansion in trade. Continued prevarication will damage trade and give competing economies the advantage."
He contrasted the Government's approach on the issue with that of the Dutch. "Rotterdam's port will expand by 2,000 hectares by 2012. In contrast in Dublin Port we are still trying to get agreement for a 20-hectare expansion. We are rapidly reaching a point where we need to act," Mr McCabe said.
The report states that the Republic provides only three hectares per billion euro in gross domestic product, compared with over 10 hectares in the Netherlands. "Container handling capacity is the pressing area of underprovision in the Republic."
Unlike the Republic, the freight industry in the UK and the Netherlands could look forward to at least a 100 per cent capacity expansion over the next five years, the report suggests.
"Ibec is calling on the Government to immediately suspend the 'analysis paralysis' of endless strategy reports, consultations and ports policy statements. Much of this activity is simply duplicating what has gone before," Mr McCabe said.
He warned the economy would face serious consequences unless investment accelerated. "Capacity shortfalls have the potential to seriously weaken manufacturing, the most trade- dependent sector of industry. Decades of sustained effort to promote industrial development could be undermined."
