Turnover up 4% at Foyle Port despite 130k tonne trade dip amid record inflation and energy crisis

Chair of the Port and Harbour Commissioners, Bonnie Anley, has pointed to ‘record high inflation and the energy crisis’ while Port Chief Executive Brian McGrath described 2022/23 as ‘another economically challenging year’.

Trade at Lisahally was down 8 per cent from 1.93m tonnes in 2021/22 to 1.8m tonnes in 2022/23 due to a reduction in dry bulk handed.

The amount of liquid bulk handled – including oil and gas – remained high, however, and this thus led to a 4% increase in turnover from £10.8million (rounded up from £10,753,230) in 2021/22 to £11.2m (rounded up from £11,197,619) in 2022/23, despite the overall trade dip.

Ms. Anley outlined the overall trading position in a statement introducing Foyle Port’s newly-published annual report.

“The result has been achieved against the most challenging economic backdrop in recent memory with record high inflation and the energy crisis impacting both the port business and that of our customers.

“Turnover achieved in 2022/23 of £11.2 million represented a 4 per cent increase on the prior year.

"While the liquid bulk trade remained strong year on year, the economic conditions impacted the levels of dry bulk handled with overall trade reducing by 8 per cent to 1.8 million tonnes.”

Mr. McGrath described the 2022/23 results as ‘an acceptable outcome delivered in another economically challenging year’.

He stated: “The Organisation has recorded turnover for the year of £11.2 million with an operating profit achieved of £1.4 million based on a 12 per cent operating margin.

"This outcome represents the Port’s positive resilience on one hand, but with negative impacts due to external drag factors on the other.

“These included record levels of inflation, soaring energy prices, and the arbitrary and immediate impact of the removal of the red diesel exemption.

"The economic pressures we have experienced during this period have impacted widely across business and wider society and have been acutely felt across the UK.

"The Northern Ireland ports have experienced trade fluctuations and bulk tonnage reductions appear to be of common concern.

“Nevertheless, the result, generated through trade levels of 1.8 million tonnes, enhanced through our diversified services including towage, pilotage, dredging, and estate rents, is a credit to the entire team.”

Ms. Anley too referred to the Derry harbour’s diversified services of marine and engineering and said they were ‘key contributors to the Organisation’s success with the port performance boosted by strong marine services activity throughout the year with dredging and towage services provided to ports across the UK and Ireland’.

“Operating profit achieved of £1.4 million represented a decrease of 25 per cent on the prior year driven by a material uplift in overhead due to inflation and energy prices set against a reduction in the dry bulk trade handled.

“Strong profit levels remain essential to ensure continuous investment and growth in the port asset.

“During the year, the Commissioners reinvested £1.6 million in port improvements and the expansion of the harbour estate which now totals 208 acres,” Ms. Anley observed.

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