ANNUAL REVIEW 2016 A STRATEGIC NATIONAL ASSET WHERE VISION CREATES GROWTH

Transcription

1 ANNUAL REVIEW 2016 A STRATEGIC NATIONAL ASSET WHERE VISION CREATES GROWTH

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3 PORT OF CROMARTY FIRTH: A NATIONAL STRATEGIC ASSET FOREWORD The UK ports industry plays a fundamentally important role in the country s economy. 95% of the UK s international trade - imports and exports - is carried through UK ports. It is the second largest ports industry in Europe, handling almost 500 million tonnes of freight each year, as well as over 60 million international and domestic passenger journeys. Ports provide important economic hubs of activity and are often at the heart of their communities. Whatever their size, ports are major providers of employment within their areas. As well as commercial activities in relation to freight and shipping, ports provide gateways and hubs for the offshore and fishing industries. Ports are also often important locations for recreational marine leisure activities and they can contribute to local economies in other ways. There are three types of port ownership common in the UK, namely Private, Local Authority and Trust. With the exception of some lifeline ferry services the entire sector is strategically and financially independent of central Government. Trust Ports governance structures are particularly designed to reflect local markets and the needs of local communities. This is a popular model in the UK, with over 100 Trust Ports in existence. Port of Cromarty Firth is all of these things; providing employment, inward investment and tourism. It is a proven strategic asset for Scotland and the UK. Richard Ballantyne, Chief Executive British Ports Association 95% OF THE UK S INTERNATIONAL TRADE IS CARRIED THROUGH UK PORTS 60 MILLION INTERNATIONAL AND DOMESTIC PASSENGER JOURNEYS 500 MILLION TONNES OF FREIGHT PER YEAR PORT OF CROMARTY FIRTH ANNUAL REVIEW

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5 PORT 1 [PAWRT, POHRT] 1. A place on the coast at which ships can take refuge from storms, or dock to load and unload cargo or passengers. PROVIDING A SAFE HARBOUR FOR GENERATIONS Providing safe navigation and a secure harbour are the priorities of port authorities around the globe. International security and border control are increasingly important in the modern world and the Port of Cromarty Firth s main concern is for the safety and security of the people and vessels that visit the Firth. ROLE OF THE PORT S MARINE PILOTS: While captains are in charge of ships, marine pilots help in manoeuvring ships during their arrival at or departure from a port. The pilot s knowledge of the Firth means they can advise the captain what route to take and guide them as to any alterations that need to be made during routine manoeuvring. This is particularly important for the large vessels that visit the Port of Cromarty Firth. PORT OF CROMARTY FIRTH ANNUAL REVIEW

6 CREATING LOCAL EMPLOYMENT I get great satisfaction out of giving people employment or helping them to get employment. One of the things the Port does is enable companies to come into the Port and to set up business and to work on a ship or an oil rig, or some other structure and thereby create employment. There was one day two or three years ago we had 1,800 people through the turnstiles into the Invergordon Service Base. I thought that was fantastic and that s what gives me the most pleasure in this job. Douglas Russell Chair of the Board of Directors 275 PER 1 IN 6 JOBS IN THE INVERGORDON TRAVEL TO WORK AREA (HIE) MILLION ECONOMIC VALUE ANNUM (HALCROW) 6 PORT OF CROMARTY FIRTH ANNUAL REVIEW 2016

7 IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVES, NOR THE MOST INTELLIGENT, BUT THE ONES MOST ADAPTABLE TO CHANGE LEON C. MEGGINSON 7

8 SALTBURN PIER ADMIRALTY PIER INVERGORDON SERVICE BASE HIGHLAND DEEPHAVEN INDUSTRIAL ESTATE AND SPOOLBASE 8 ARTIST S IMPRESSION. NOT TO SCALE. PORT OF CROMARTY FIRTH ANNUAL REVIEW 2016

9 WELCOME TO THE LARGEST PORT IN THE HIGHLANDS NIGG OIL TERMINAL NIGG ENERGY PARK Oil & Gas 76% of Port s revenue Oil price reaches a new low 120,000 jobs lost in the North Sea Average number rigs in the Firth = 12 KEY FACTS 2016 TURNOVER 8.4 MILLION SURPLUS BEFORE TAX 2.4 MILLION Number of rigs serviced and repaired in the Cromarty Firth to date: 686 Vessel tonnage: 2.3 million gross tonnes Renewables Vessel tonnage: 67,000 gross tonnes New Berth 5 opened Corriemoillie Wind Farm hosted 2% of revenue Cruise 64 cruise ships 1000 th cruise ship welcomed 97,993 passengers More passengers than any other Scottish port 134% increase in last 10 years 11% of revenue 10 million value to the Highland economy 9

10 OUR PHILOSOPHY IS ROOTED IN SUSTAINABILITY AND TRANSPARENCY SOCIAL Ports have a natural ebb and flow: The tide comes in and the tide goes out. People come and go, businesses open and close, industries change with the times and wildlife changes with the seasons. The only constant is the water. The Firth sustains and supports life, jobs and communities. The Port is honoured to act as guardian for the sustainable use of the Firth to ensure current and future generations can enjoy its many benefits. MANAGEABLE EQUITABLE SUSTAINABLE ENVIRONMENT ECONOMIC VIABLE 10 PORT OF CROMARTY FIRTH ANNUAL REVIEW 2016

11 TRUST 1 [TRUHST] 1. Firm belief In the reliability, truth, or ability, or strength of someone or something. relations have to be built on trust acceptance of the truth of a statement without evidence or investigation. the state of being responsible for someone or something. 2. Law Confidence placed in a person by making that person the nominal owner of property to be held or used for the benefit of one or more others. an arrangement whereby a person (a trustee) holds property as its nominal owner for the good of one or more beneficiaries. synonyms: safekeeping, protection, charge, care, custody; trusteeship. 3. A body of trustees an organisation or company managed by trustees. a charitable trust 11

12 ENVIRONMENTAL MAP OF FIRTH SALTBURN PIER ADMIRALTY PIER INVERGORDON SERVICE BASE BAR-TAILED GODWIT WHOOPER SWAN EURASIAN OTTER HIGHLAND DEEPHAVEN INDUSTRIAL ESTATE 12 ARTIST S IMPRESSION. NOT TO SCALE.

13 36 miles of coastline SITE OF SPECIAL SCIENTIFIC INTEREST (SSSI) 30,000 wintering birds 300 nesting terns 195 bottlenose dolphins 1 Special Area of Conservation 1 Site of Special Scientific Interest SPECIAL PROTECTION AREA (SPA) SPECIAL AREA OF CONSERVATION (SAC) 1 Special Protected Area 1 Ramsar site RAMSAR (SAC) HARBOUR PORPOISE NIGG OIL TERMINAL NIGG ENERGY PARK BOTTLENOSE DOLPHIN PORT OF CROMARTY FIRTH ANNUAL REVIEW

14 CHIEF EXECUTIVE S REPORT FOR THE YEAR ENDED 31 DECEMBER 2016 The Port s strategy of continuing to diversify its business portfolio has helped offset some of the downturn experienced in the oil and gas sector and saw the Port record a turnover of 8.4m with a pre-tax surplus of 2.4m. The Port remains focused on existing markets and stakeholders and is also targeting new opportunities in the cruise, decommissioning and renewable sectors. In response to the continued downturn in the oil and gas markets, the Port also undertook a pricing review in A new pricing structure will be implemented from January 2017; reducing the statutory dues for the majority of visitors to the Port and supporting our key customers and supply chain companies as they adapt to the lower oil prices. Activity at the Nigg Oil Terminal all but ceased in 2016 as the Beatrice oil field was scheduled for decommissioning. The Port worked with the terminal owners throughout the year to identify opportunities to attract tankers back to the Firth. The Port s concurrent application for a ship-to-ship oil transfer licence at anchor is ongoing with the Maritime and Coastguard Agency. In contrast, the cruise sector is growing at an unprecedented rate (91 liners expected in 2017, an increase of 42% YOY). The ability to attract increased numbers of cruise liners has provided a benefit to the Port and a greater benefit to our stakeholders within the Highland economy. 98,000 passengers arrived in 2016, with an estimated benefit to the Highland economy of over 10m. In order to improve the passenger experience, accommodate the newer, larger liners and secure this market for the Highlands over the long term, the Port undertook engineering studies and pre-consultation exercises for the development of a new quayside and passenger reception facilities. In addition, the Port positioned itself as a leading option for North Sea oil and gas decommissioning and began preparing the applications to secure the necessary permits to undertake decommissioning projects at the Invergordon Service Base. This will protect employment and provide opportunities for the local supply chain. Renewable energy has also been a focus of the Port over the last few years and in 2016 we worked to attract new projects to the Firth. The Port took the delivery of the Corriemoillie onshore wind farm and further fruits of these efforts will be seen in We continue our journey to change the historic `Authority culture to that of a modern, open, collaborative Trust Port, while maintaining the balance between our statutory, commercial and environmental responsibilities. Our staff, Board and broad range of external stakeholders all play a vital role in helping us to ensure we attain our goals and objectives as we work towards our mission of improving, safeguarding and developing the Cromarty Firth as a port, for the benefit of all our stakeholders. Bob Buskie Chief Executive 14 PORT OF CROMARTY FIRTH ANNUAL REVIEW 2016

15 CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER Turnover Cost of sales 8,419,553 (4,780,048) 7,740,247 (4,187,872) Gross surplus Administrative expenses 3,639,505 (1,390,981) 3,552,375 (1,437,204) Operating surplus Interest receivable and similar income Interest payable and similar charges Other finance costs 2,248,524 22,466 (126,051) (103,000) 2,115,171 18,625 (99,441) (111,000) Surplus before taxation Share of surplus before taxation in joint ventures Taxation on ordinary activities Taxation on joint ventures 2,041, ,006 2,414,945 (562,832) (81,606) 1,923, ,873 2,082,228 (466,293) (53,208) Surplus after taxation 1,770,507 1,562,727 Surplus for the financial year is attributable to: Cromarty Firth Port Authority Joint ventures 1,479, ,400 1,457, ,665 Surplus for the financial year 1,770,507 1,562,727 Other comprehensive income Actuarial gain/(loss) on defined benefit pension schemes Tax relating to other comprehensive income (330,000) 56, ,000 (132,840) Surplus for the financial year 1,496,607 2,167,887 The surplus and loss account has been prepared on the basis that all operations are continuing operations. 15

16 BALANCE SHEET AS AT 31 DECEMBER Fixed assets Tangible fixed assets Investments 30,416, ,415 30,505, ,015 30,539,473 30,762,600 Current assets Stocks Debtors Cash at bank and in hand 9,854 2,447,951 7,086,452 8,446 3,396,284 4,269,052 9,544,257 7,673,782 Creditors: amounts falling due within one year (2,236,423) (2,303,266) Net current assets 7,307,834 5,370,516 Total assets less current liabilities 37,847,307 36,133,116 Creditors: amounts falling due after more than one year (13,529,557) (13,776,924) Provisions for liabilities (2,835,544) (2,370,593) Net assets 21,482,206 19,985,599 Capital and reserves Surplus and loss account 21,482,206 19,985,599 The financial statements were approved and authorised for issue by the Board and were signed on its behalf on 28th October Douglas Russell Chair of the Board of Directors 16

17 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016 Cash flows from operating activities Cash generated from operations Interest paid Income taxes paid 3,944,386 (126,051) (590,596) 446,213 (99,441) (765,831) Net cash (outflow)/inflow from operating activities 3,227,739 (419,059) Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Interest received and other net finance costs Dividends received (873,777) - (80,534) 425,000 (11,966,541) 2,896 (92,375) - Net cash used in investing activities (529,311) (12,056,020) Financing activities Proceeds from government grants Repayment of bank loans 252,810 (133,838) 5,801,761 (125,250) Net cash generated from financing activities 118,972 5,676,511 Net increase/(decrease) in cash and cash equivalents 2,817,400 (6,798,568) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 4,269,052 7,086,452 5,197,203 4,269,052 For a full version of the accounts, please cfpa@cfpa.co.uk or visit PORT OF CROMARTY FIRTH ANNUAL REVIEW

18 GUARDIANS OF THE FIRTH WHAT I ENJOY ABOUT WORKING AT THE PORT OF CROMARTY FIRTH 18

19 MY PORT STORY: CAPTAIN IAIN DUNDERDALE Captain Dunderdale joined the Port in 1981 but it was 1990 before the drive began to market it internationally as a cruise destination. In its first year, Invergordon welcomed 2,845 passengers. We ll welcome 142,000 in 2017 and surpass that in 2018, he says. The cruise industry now underpins hundreds of jobs directly and indirectly in the Highlands. His contact book has been a crucial tool in the Firth s rise to be Scotland s busiest cruise destination. He knows those worth knowing in the industry and has helped Invergordon to develop the critical capability to cater for liners. Bob Buskie, Chief Executive of the Port of Cromarty Firth, says Iain is a legend who has done so much for the Port and the Highlands. He has built the Scottish cruise industry up from nothing. He s there when a liner comes in, often at 6 or 7 in the morning and he stays there until it leaves, which can be 7 or 8 o clock at night. He s phenomenal. Captain Dunderdale is retiring at the end of He says It has given me enormous satisfaction to see the cruise industry take root and grow in the Firth. I ve greatly enjoyed being part of it. It will be the end of an era when he says farewell to his last vessel. PORT OF CROMARTY FIRTH ANNUAL REVIEW

20 MOOR UP WITHOUT BEING TIED IN At the Port of Cromarty Firth you re 100% free to choose the best contractor partners for the job when you bring your next project here.

21 WORLD-CLASS SUPPLY CHAIN The Port has a world-class supply chain of companies which operate across a range of vertical markets to help ensure the Port attracts as many diverse projects as possible. This facilitates local jobs and economic growth. The Port s growth strategy has attracted local and international companies to the area. This includes companies like Semco Maritime and Rigmar who, together with Global Energy Group and Port of Cromarty Firth Services, offer more choice, bring in new projects and employ local people. OUR STORY: CRC-EVANS OFFSHORE WORLD-LEADING OFFSHORE PIPELINE CONSTRUCTION CRC-Evans Offshore, part of Stanley Oil & Gas, is a world leading offshore pipeline construction specialist, offering a wide range of pipeline fabrication services to the oil & gas industry. Their global operating presence includes North & South America, Europe, West Africa and South East Asia, and they service their North Sea customers from bases in Alness and Invergordon. CRC-Evans Offshore are able to offer a variety of unique, project specific welding solutions to suit a variety of pipeline installation methods, including spoolbase stalk production, double jointing and Offshore S-Lay. By designing and building stateof-the-art equipment, engineered for the unique demands of offshore construction, CRC-Evans Offshore can select the optimum welding and fabrication solutions to suit project specific requirements. This capability and experience has enabled them to secure very demanding projects including DGE Kodiak, Petrobras Guara Lula Clad and Carbon SCRs, ONGC C26 Clad in India and the ENI Block 15 and Total Kaombo Projects in Angola. PORT OF CROMARTY FIRTH ANNUAL REVIEW

22 Port pilot, Bruce Tucker, on his commute to work. 22

23 HONOURING THE PAST MY PORT STORY: BRUCE TUCKER 2016 SAW THE 100 YEAR ANNIVERSARY OF THE BATTLE OF JUTLAND. Invergordon played a key role before and after Jutland, with a squadron of battle cruisers sailing from the Cromarty Firth to take part. After the battle, ships made their way to Invergordon for repairs and injured sailors returned to the town for treatment. Some of those who did not recover from their injuries are laid to rest in Rosskeen Cemetery. Captain Bruce Tucker, a pilot at the Port, discovered he had a personal connection to the battle through his cousin and attended the 2016 remembrance ceremonies in both Invergordon and Orkney. Captain Cyril Illingworth, from Kendal in the Lake District, was a Merchant Navy Officer in He was called up as part of the Royal Navy Reserve to serve on board HMS Valiant, which sailed into battle from Rosyth with Vice Admiral Beatty s battle cruiser fleet. This fleet was the first to sight the German battleships and engage in combat. Captain Illingworth was fortunate to return uninjured and rejoin the Merchant Navy. He was called up to serve with the Royal Navy once again in World War II. Following the wars he became a Commodore of the Cunard White Star Line commanding iconic ships including the Queen Mary and the Queen Elizabeth. He even featured on the cover of Time magazine. Bruce has been a pilot at the Port since He grew up in the Lake District and moved to Scotland 30 years ago. Following the family tradition, he has piloted both the Queen Elizabeth and the Queen Victoria into Invergordon on their visits. PORT OF CROMARTY FIRTH ANNUAL REVIEW

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25 THE PORT AND YOU To understand what different stakeholder groups value and want the Port to deliver, and to ensure that we continue to provide a thriving, sustainable Port for future generations, a stakeholder engagement programme is now in place. This includes networking lunches with Port users, projects with local schools, visits for local and national politicians, staff meetings, support for local charity groups (including Ross and Sutherland RFC), and meetings with local residents and representatives of the nine community councils that border the Firth. The Port also holds an annual public meeting, which is open to everyone. The Port has a special relationship with their neighbours, the RNLI. Their annual Open Day raises much needed funds for the Lifeboat Station. This amounted to 5,000 in

26 SECURING THE FUTURE Like most businesses, the Port has to make a financial surplus to survive however, as a Trust, every penny made is reinvested in the Port for the benefit of its stakeholders. Reinvestments in 2016 included: 600,000 in dredging to maintain safe navigation 100,000 improving safety and security including the installation of CCTV 21,000 on new gangways 11,000 on Phase 3 26

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28 ANNUAL REVIEW 2016 Port Office, Shore Road, Invergordon IV18 0HD T E cfpa@cfpa.co.uk