1. The effect of large port infrastructure on the development on the business and management structure of the port organisation Brendan Keating, CEO Paul O’Regan, Harbour Master/Operations Manager

2. CONTENT Port Company Outline Background to Project Key Drivers
Future Port
Funding Model
Management structure; Before and After;
Tier 1 Port – National Ports Policy Statement

3. ABOUT THE PORT OF CORK The key seaport on the South Coast of Ireland
A Commercial Company (118 employees & 12 Sea Pilots), which is owned by the Irish State
Caters seven shipping modes: Lo-Lo, Ro-Ro, Liquid bulk, Break bulk, Dry bulk, Offshore support and Cruise liners
Annual traffic volumes of between million tonnes:
11 million tonnes (2015)
205,829 TEU’s
58 cruise liners
Turnover 2015 €29m
Profit 2015 €5.2m
Tier 1 Port – National Ports Policy Statement

4. TRADE TRAFFIC FIGURES 2006-2014
POCC August 2015 Ytd Total Trade Traffic 10% ahead of 2014 actual

5. PORT OF CORK FACILITIES
CITY QUAYS
TIVOLI DOCKS
RINGASKIDDY
COBH

6. CURRENT FACILITIES FUTURE OPERATIONAL CHALLENGES
17 May 2018
CURRENT FACILITIES FUTURE OPERATIONAL CHALLENGES
The Port of Cork’s Strategic Development Plan review (2010) examined the future development of the cargo handling capacity.
It concluded that in order to maintain competiveness, it is essential that the Port responds to future growth requirements and shipping trends
Commercial ships are increasingly becoming larger
The Port of Cork must relocate from the Upper Harbour (Tivoli Docks & City Quays) as the depth and width of the water channel, and landside capacity cannot deal with larger vessels
Maritime logistics are trending towards port-centred logistics which requires a different nature of land banks adjacent to port facilities.
It is not possible to redevelop the existing container facility (demand for back-up lands, distribution, etc.)
Increasing container volumes means the Port is already reaching its capacity levels.
[Document title]

7. A Long Road 10 year process – Common feature in Port Planning
2000 Strategic Development Plan approved
2005 Start preparations for planning process (EIS, Site Selection, Consultants)
2007 Initial Application for 800m Berthage & Container Terminal 750,000 TEU (€150m)
2008 Refusal by Planning Authorities (Road and Rail Links) – Company Costs €3m
2009 Peer Review process
2010 Revised Strategic Plan for Port Company
2012 Re-start preparations for planning process (EIS, Site Selection, Consultants)
2014 Application for 550m Berthage & 400,000 TEU terminal
2015 Application Approved
10 year process – Common feature in Port Planning
A Long Road

8. IMPROVING PORT’S COMPETITIVE POSITION & OVERCOMING CONSTRAINTS
The planning horizon seeks to put in place a long term framework in addition to addressing the short term infrastructural needs of the Port
A strengthening of our competitive position by increasing infrastructure capacity is matched by strategies for transport connectivity, land use and ICT

9. FUTURE DEVELOPMENT - RINGASKIDDY
Planning permission granted for re-development of existing port facilities at Ringaskiddy in May 2015

10. RINGASKIDDY PORT REDEVELOPMENT
Project involves:
€80 million investment
Award main contract Q4 2016
Construction commencing late 2016
Operational by 2018

11. PORT ROAD ACCESS M28 Road Upgrade now included in Government’s Investment Plan and will meet Port’s requirements

12. LAND USE STRATEGY
The Port is presently finalising a Land Use Strategy which will see the Company re-structure it’s property portfolio. This will
Realise value from property in the Upper Harbour over-time to contribute to funding of infrastructure and operational requirements
Ensure optimal use of Port of Cork lands so as to accommodate short, medium and long-term business needs
Ensure sufficient land to facilitate port expansion and business requirements to 2040

13. FUNDING STRATEGY
The financial crisis in Ireland saw a dramatic decline in the proportion of national output spent on infrastructure
In the EU, the level of overall investment has dropped from 21.3% GDP in 2007 to 17% in 2013
Today there is a unique opportunity of securing cheap funding for long term proposals such as port infrastructure
The challenge however, is to avoid building excess capacity and ensure that investments generate adequate returns
A conventional publically owned port today most likely should seek to build the infrastructure and then enter into a concession arrangement over a period of 30 years or more for the operation
The owners/shareholders of the Port of Cork are unwilling to invest in the development of the business and its asset base
The Port of Cork has decided that if it is to have infrastructure with adequate capacity to drive business growth, it must make the investment itself

14. FUNDING STRATEGY (CONT’D)
The Funding Strategy for delivering the Port of Cork infrastructure proposals is :
Senior Debt:
- European Investment Bank €30m
- Commercial Bank €30m
- Mezzanine Finance €10m
- Company Cash €10m
To reduce the level of debt before 2020, the Company will dispose of non-core assets such as:
City Offices Complex
Tivoli Port Industrial Estate

15. FUNDING STRATEGY (CONT’D)
Consulting Teams EY
MTBS (commercial planning)
Philip Lee (Legal)
Indecon (Economists)
RPS (Civils)
TBA (Terminals)

16. The Organisational Changes made to Plan and Deliver the Project
The Port of Cork Company has restructured to effectively manage the additional work load on the planning and delivery of the major infrastructural project at Ringaskiddy
The Organisational Changes made to Plan and Deliver the Project

17. The Organisational Changes made to Plan and Deliver the Project
An Executive Project Steering Committee with responsibility for managing and co-ordinating activities and resources for the project has been established.
A special Investment Sub-Committee of the Board has been established to oversee the work of the CEO and the Executive Team.
The Organisational Changes made to Plan and Deliver the Project

18. The Organisational Changes made to Plan and Deliver the Project
A member of specialist consultants have been engaged to cover issues such as:
Planning & Design & Regulatory Consent
Procurement
Contract / Legal
Finance & Banking
The Organisational Changes made to Plan and Deliver the Project

19. Company Structure: pre-development
Board of Directors
Investment Committee
CEO
Commercial Manager
Commercial / Marketing team
Company Secetary
Finance team / Administration
Harbour Master / Operations Manager
Port Operations
Manager Engineering Services
Engineering team

20. Company Structure: development
Board of Directors
CEO
Commercial Manager
Commercial / Marketing team
Company Secetary
Finance team / Administration
Harbour Master / Operations Manager
Port Operations
Manager Engineering Services / Project Director
Engineering team
Project team
Project Engineer
Project Manager
Project Co-Ordinator / Project Communications
Safety & Quality Systems Manager
Resident Engineer
External Consultants
Investment Committee
Workforce grew by over 5% with dedicated project team

21. Project Working Structure (cont)
13 Work Streams each with nominated Co-ordinator – all reporting to Project Director
Monthly progress reports for each Work Stream – chart progress against programme
Monthly Work Stream Co-Ordinator meetings
Monthly update to project risk register
Monthly project Steering Group meeting
Report to Board of Directors on project progress / issues / programme / funding each month

22. Key Issues / Pressure Points on Organisation
Work Stream Co-Ordinator workloads V Day Jobs
Day to Day Port Operations and Business
Managing Port Operations interface with construction
Community liaison and communication – buy-in and consistent messaging across the organisation
Internal communication across company departments (engineering / operations / commercial / finance)
Introduction of project specific systems (EDMS)

23. The Organisational Changes made to Plan and Deliver the Project
A dedicated project of office has been established and resourced.
Each Senior Manager has been assigned responsibility for the delivery of the nine work streams.
Workloads increased in all sections, sometimes forcing reactive employment with the management structure
The Organisational Changes made to Plan and Deliver the Project

24. Project Working Structure

25. A large scale project relative to Port size and structure has the potential to derail the Port if not run properly.
The port needs this project to survive and grow
The extent of engagements; public, customers, finance, legal, Statutory can be over whelming for a small management team
Managing public perception is difficult but essential
Consultants are a vital resource, however, you know your own Port best.
Financing a large scale project can change the entire structure of the Port Company
Plan and cost the necessary HRs with overall project costs
The core port business must be supported throughout.
Manage in-house Vs Contract Out?
Conclusions
Winner of World Cruise Awards for Best Port Welcome and Best Experience

26. Thank you
WEB