The Report completed by Indecon International Economic Consultants shows that the eleven State Commercial Seaports are significant net contributors to the Irish economy and that two thirds of exporters believe that the investment in ports infrastructure must figure in the Government’s next National Development Plan.
The Indecon Report was commissioned to assess the economic impact of State Commercial Seaports on the Irish Economy. Commissioned by the State Commercial Seaports representative body, the Irish Ports Association (IPA), the report is intended to raise the levels of awareness of the importance of the commercial seaports and their contribution to economic development, particularly given the looming capacity deficit in port infrastructure.
It provides a comprehensive independent analysis of the port’s economic contribution, income, spending generated and employment levels. The report concludes that the net economic impact arising from the presence and operation of the State Commercial Seaports is estimated at €5.5 billion, supported approximately by 57,500 fulltime employees across the Irish economy.
Ireland is a small open economy that relies strongly on trade with other countries. The importance of trade within the overall context of the Irish economy is indicated by the fact that, in 2004, Ireland traded almost 56 million tonnes of merchandise with a value of €135.3 billion. Moreover, exports and imports accounted for 67.8% and 41.1% of Gross National Product respectively, while the combined value of total exports and imports totalled some €135 billion.
The report points out that trade with other countries contributed a net €33.2 billion to the Irish economy during 2004 with sea based transport accounting for 84% of the total volume and 58% of the total value of goods traded by the Irish economy.
In 2004, a total of €38.7 million of expenditure was incurred by the eleven State Commercial Seaports on wages and salaries for their 694 employees involved directly in the activities of the ports/harbours. Commenting on the report, Robert Watt, Indecon, said; "Ireland is an extremely open economy where we import most of what we consume and export most of what we produce. Ports are playing a key role in Ireland’s economic development and this report for the first time details the economic contribution of Ireland’s commercial seaports. It highlights their importance and the need for investment to ensure that they continue to meet Ireland’s needs as a trading nation. "
Eamon Bradshaw, Chairman of The Irish Ports Association, outlined the vital role the seaports play in Irish commercial life and warned of the consequences of neglecting the ports as key infrastructure.
He welcomed the report on behalf of the State Commercial Seaports and its employees as it provides “independent verification that the State Commercial Seaports are significant net contributors to the Irish exchequer, form a substantial part of Irish economic life and generate significant employment, particularly in coastal areas.”
Mr Bradshaw concluded by calling on the Government to make investment in Irish Seaports “a central pillar of the upcoming National Development Plan”.
Chairman of the Drogheda Port Company, Mr Patrick Traynor, stated that it is important to highlight the overall economic contribution of the state commercial seaports across the Irish economy as a whole. Additionally at an individual port level, the regional seaports play an important role in relation to the wider economic development of the surrounding regions in which they are located. Drogheda Port alone handles goods with a value of over €2 billion on an annual basis.
About The Irish Ports Association
The Irish Ports Association, originally titled the Irish Port Authorities Association, has been in existence for over 50 years. In 1996 the name and constitution of the Association was changed when it took on the task of representing the Irish Commercial Ports at the European Sea Ports Organisation and interfacing with the EU. The Association also acts as an interface between the ports and relevant Government Departments. All the commercial ports are members of the Association and their interests are further served by the commissioning of specialist reports on topics of general interest such as the present Indecon report. The Association also organises an Annual Ports Conference where international expert speakers address the most important issues of the day. This year the conference will be held in Galway on the 29th September where the theme is “Challenges for Port Development in Ireland.”
About Indecon International Economic Consultants
Indecon International Economic Consultants (www.indecon.ie) is Ireland's largest economic consultancy. Since it was formed in 1988, Indecon has provided economic advice to government departments, financial institutions, multinational companies and major utilities. Indecon (Ireland) is a constituent firm within the Indecon International Economic Consultancy Group. The leading European economic consultancy London Economics is also part of the Indecon Group.
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