Beyond the box
Multi-business strategies spread the risk at the UK’s Portland harbour. Carly Fields reports
It’s not often in this box mad world you arrive for a port visit to be greeted with the opening line: “One thing I will say with certainty is that we won’t plan our future around handling containers”. But Portland Harbour Authority’s commercial manager Ian McQuade has more adventurous, beyond-the-box plans for his port.
“Portland is not your typical 3Cs port with cruise, containers and cars. We’re only small but we are trying to have a multi-business strategy. We’re not there yet, but we are working on it. You have to discuss broadly as you never know what opportunity will come to fruition.”
And broad it certainly is. Heavy-lift, geological ships, bunker supply, and liquid cargoes all have a home in Portland.
“It’s a mixed bag,” confirms Mr McQuade, “and we want a slightly wider mix going forward to spread the risk further.”
Cruise is one potential target for the short term, but it’s what’s in the energy pipeline that could really lift this southern UK port.
“There are a number of opportunities for the future, particularly in the energy markets,” Mr McQuade tells Port Strategy. “One opportunity is through Portland Gas, a company dedicated to developing and operating gas storage facilities and gas infrastructure in Portland old Naval Docks area. We’re waiting to see how that pans out.
“There is also approval for a biomass power station at Balaclava Bay, however construction is being held up by government decisions on renewable obligation certificates.”
The latter project is being developed as a Special Project Vehicle by W4B Renewable Energy Ltd. The site is close to the dockside and oil will be delivered, via a pipeline, to storage tanks alongside the power plant. The green electricity generated will be connected, via a nearby substation, to the national grid. When operational, the plant could deliver over 20% of Dorset’s agreed contribution to the UK’s national target to obtain 15.4% of its electricity from renewable sources by 2015.
Meanwhile, last year’s announcement of Round 3 of the UK's offshore wind farm development plans was the cause of much excitement in UK ports. Portland was not immune, but its interest was for less obvious reasons. “We’re in a slightly different position on the South coast and from our point of view, our interest is twofold,” says Mr McQuade. “Firstly, one array is on our doorstep: Eneco New Energy’s West of Isle of Wight zone is 20 miles from here. Secondly, during the construction and assembly phase, our deep water can support installation vessels and we can provide a base for operation and maintenance support for the long term.
“The local MP is on board and we have support from the borough council. It’s potentially a huge benefit for the local economy. Eneco knows who we are, what we do and what we can do to help them, but we need to make sure that the top level of the supply chain knows as well.”
Of course, it’s not just wind energy that offers potential for UK ports; tidal and wave energy could also provide a revenue stream.
“There’s massive potential at Portland Bill and around the Channel Islands. We’re thinking about offshore energy in the broadest sense.”
But what about the threat of losing business to continental Europe as UK ports get tied up in the red tape planning tangle? “It’s a major risk,” confirms Mr McQuade. “Hardly any of the Round 1 and 2 of the UK’s offshore wind farm development plans came through UK ports.
“We’re happy to compete in an open market, but we’d like more support (tacit or otherwise) as European ports get.” Here, Mr McQuade draws on the example of Bremerhaven’s massive development, which was funded by the regional government.
“The other big issue we have is the whole process and planning. None of the Round 3 companies expect to come on stream until 2015, despite being awarded the contracts in 2010. When Germany announced its wind farm development plans, the process was immediate.
“If we had that level of support we could build the whole Harbour Revision Order and go to market with the offering.” Portland has a Harbour Revision Order granted to develop 130,000 m sq of space, but is looking for a partner to maximise the potential of that development.
