Gaway Harbour Company has expressed disappointment at the Government's decision to reject a €4 million development plan for the docks.
However, the Department of Communications, Marine and Natural Resources, which says it was never expected that the State would fully fund the proposed development, also said that its grant was a first instalment. Galway has been allocated just €142,000 of the recent €5.8 million allocation for ports under the National Development Plan.
The 30-year development plan for the harbour, which had the backing of the former marine minister, Mr Frank Fahey, involved reclaiming over 34 acres of additional shore. The current port is bound by tides and navigation of the lock gates is complicated by the outflow of the Corrib river. The long-term aim was to relocate the port.
Ironically, the port has just won back deliveries of steel after a break of over 10 years, and it will also be the shore base for the State's new €30 million research vessel, Celtic Explorer.
The plan also involved providing new cranes and a marina. The €142,000 allocation will cover development works carried out up to the end of last year.
Capt Brian Sheridan, Galway's harbourmaster, said that the harbour company was very disappointed at the grant allocation.
Earlier this month, the company also received another setback, when plans to build specialist industrial offices and warehousing in place of the former Tynagh Mines dome were rejected by An Bord Pleanála.
The first delivery of steel to the port since 1991 is taking place this week, following the docking of the Ave Maria Muller in the harbour. Excessive insurance claims and rates set by dockers in the port had resulted in the business being diverted to Foynes, from where the steel was delivered by road to Galway to fuel the city's construction boom.
Last year, Galway became one of the first ports in the State to buy out its dockers, under a deal costing over €685,000. The port currently has a turnover of €2.4 million and its business has concentrated on fuel imports.