Waterford Port has accused CIÉ and Iarnród Éireann of holding up a €100 million redevelopment at the city's North Quays.
The development on the wharves between Rice Bridge and Abbey Church has been put forward to "rebalance the city" as growth has traditionally centred on the south side of the Suir.
An international architectural and urban-design competition which concluded in 2002 focused on a mix of development, including residential and office accommodation, a hotel, light industrial units and a landmark venue building as its focal point.
The potential development would represent the single largest investment made in Waterford. Located between the N25 Waterford-Rosslare road and the Suir, the North Quays are currently an assembly of man-made wharves, mainly open spaces for lifting cranes, temporary storage sheds, large mill buildings and silos, many dating from the 19th century.
The port authority, which owns the 13.5-acre site in question, requires access across a small, key site from CIÉ. The site has been occupied by Iarnród Éireann as part of its sidings in Waterford. The port authority expected to be paid in excess of €1 million per acre for the riverside land bank which it says is surplus to the port's requirements, following the transfer of commercial shipping activity down-river to the deep water port at Belview.
According to Mr Ben Gavin, chairman of the Waterford Port the sale is now being delayed by what he has described as the "wholly unreasonable" stance being taken by Iarnród Éireann, in seeking ongoing guarantees in relation to a level crossing.
However, Mr Barry Kenny of Iarnród Éireann told The Irish Times that the company was "fully supportive" of the regeneration scheme and "recognises its importance to Waterford.
"The only issue related to a level crossing and boundary works for the railway. There is a safety issue here and we have to be satisfied that this is provided for," he said.
As part of the development, the level crossing is to be automated, which would improve safety, but Mr Kenny maintained CIÉ and Iarnród Éireann needed guarantees that the crossing would be properly maintained and that, should any future owner get into financial difficulty, no liability would fall back on Iarnród Éireann.
"The port wants to transfer responsibility to a third-party developer as yet unknown, but we have suggested that instead of a sale of the land we dispose of it by way of a lease. That way, the port will still have control. Iarnród has sold off land this way in the past and it allows things to proceed and still protects our position", he said.
Mr Gavin said representatives had been involved in negotiations "for some time" with CIÉ and Iarnród Éireann and understood on more than one occasion that a deal had been completed.
