Irish Shipping Sector Continues to Grow

Regional Ports Show Record Traffic Growth

The Irish shipping industry continued to show strong growth in 2006, according to a report published today (1st May) by the Irish Maritime Development Office (IMDO) and presented at a special industry briefing at the Guinness Store House. The report, the fourth annual volume of The Irish Maritime Transport Economist, shows that growth was particularly strong in the load-on/load-off (lo/lo) and roll-on/roll-off (ro/ro) sectors, with the lo/lo sector surpassing the 1 million TEU (twenty foot equivalent unit)  mark. In the bulk sector many regional ports had double-digit growth including Drogheda, Greenore, Waterford, and Dundalk. The industry directly employs 8,300 people and had an estimated turnover of €1.69 billion last year.

“As an island economy, Ireland is totally dependent on its maritime transport industry, which continued to benefit from strong national economic growth last year. Maritime transport also continues to be the most environmentally sustainable and cost-effective means of moving large volumes of goods. We believe the performance of the sector is clearly reflected in this year’s bulletin,” said IMDO Director Mr. Glenn Murphy. “The ports and shipping sectors are important facilitators of economic growth and efficiency. I have no doubt that good international transport systems help to increase economic efficiency, support deep and productive markets and allow business and participants to reap the benefits of the global market place. Indeed, €158 billion worth of merchandise goods were transported by the Irish supply chain in 2006,”

“The global boom has entered its fourth year, with world growth still expanding at a 5% pace, a trend unprecedented in the post-war era,” said Dr Dan McLaughlin, Chief Economist Bank of Ireland at the briefing. “This in turn has underpinned a boom in shipping and underpinned commodity prices. World growth is also better balanced of late, with a slowdown in the US offset by a buoyant Europe and a resilient Asia, which has put pressure on the dollar. The next move in US rates will be down, probably in the third quarter, and the rate cycle in Europe is approaching its peak. The Irish economy is likely to grow by 6% this year and 5% next, driven by consumer spending, but external trade will also remain an important contributor to the economy - the volume of Irish exports has grown by 33% since 2000, against import growth of 32%, hardly evidence of a serious loss of competitiveness. “

"The port sector is facing its greatest ever challenge in providing sufficient new infrastructural capacity for an ever expanding economy. The future success of Irelands economic growth will be dependant on the performance of this sector more than any other." commented Drogheda Port Chief Executive Mr Paul Fleming. "Our plans for the development of Irelands new deepwater port at Bremore will provide a new dimension to the Irish Port sector and assist in future proofing the economy."

ENDS