Annual Report 2019 - Port of Inverness

Port of InvernessAnnual Report 2019

www.portofinverness.co.uk

2018/19 – A Record Year for the Port of Inverness

Port of Inverness Annual Report 2019

We celebrated several firsts this year:

Longest load to leave the Port: 85 metres

Longest turbine blades to leave the Port: 55 metres

Heaviest lift over the quay: 193 tonnes

Largest number of complete wind turbines handled: 72

Most cruise ship turnaround visits

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I am delighted to welcome you to our Annual

Report for 2018/19 – a record year not

just for the Port’s financial per formance

but across a number of areas.

After an exceptionally busy summer with the

largest number of wind turbines we have ever

handled coming through the Port, turnover was

well ahead of forecast, resulting in a record

surplus which will allow us to continue to

invest in improving our infrastructure.

Business across all other sectors also

per formed well. We continue to benefit from

our close working relationship with all our port

users and it was good to see imports of fuel

oil remaining steady and an increase in the

import of round logs in response to demand

from customers.

Inverness Harbour Trust jointly owns

Inverness Marina which also enjoyed another

strong year. As Chairman of the Marina, I am

delighted by its continued strong per formance

and increasing importance and visibility within

the economy of the Highlands.

Whilst reflecting on the year’s successes the

Board is also aware of the cyclical nature of

our business and our plans for diversification

in attracting new port users remain at the

forefront of our minds. Promoting Inverness

as a destination for tourists is part of our

strategy and we were delighted to host a

number of cruise ship visits this year.

We have also been developing our plans for

the creation of the Heritage Trail that would

see improved connectivity between the

Chairman’s Foreword


Maritime Quarter and the City Centre. We

firmly believe this would bring considerable

benefits to a wide range of stakeholders and

we were hugely encouraged by the positive

comments of support we received at the

public exhibition we held in the Victorian

Market. We will be looking to fur ther refine

these plans going forward.

As a Trust Port we differ hugely from a

private company in that we have no external

shareholders and any financial surplus must

be re-invested in the business, improving our

infrastructure and facilities. The Board is very

conscious of this responsibility and duty to

our stakeholders.

This year we benefited from a stable Board with

no Trustees coming to the end of their service.

This continuity has allowed us to focus on

developing longer term strategies and delivering

the Strategic Plan we launched in 2017. During

the year we held a strategy session, facilitated

by Highlands and Islands Enterprise, that

allowed the Trustees to review the Strategic

Plan and prioritise actions going forward.

In conclusion, I would like to thank all

our team of staff for their hard work and

commitment throughout the year. Our

record year is largely thanks to their sterling

per formance and the top class service they

provide to port users.

Angus Mackenzie Chairman, Port of Inverness

Chief Executive’s Statement4

I am delighted to report a record set of results for the year ending 31st March 2019.

Turnover was £1.839 million resulting in a surplus of £403,000. This showed a return of over 21% - a fantastic achievement which was the culmination of a strong per formance across a number of sectors. Continuing the positive theme, operational costs were in line with the budget whilst both current and long term liabilities were all substantially reduced throughout the reporting period.

We had our busiest ever summer, shipping over 70 complete wind turbines through the Port primarily for the Dorenell and Tom nan Clach Wind Farms. Dorenell was the largest number of turbines we have handled for one single development. I am very pleased to report that all par ts were moved through the Port without any complications, largely due to an exceptional level of co-operation between Port staff, agents and logistics companies.

Other sectors per formed strongly and there was a steady increase in both the import and export of round logs. Most of the imports are bound for the expanded Norbord facility at Morayhill, whilst the exports are mainly to Workington. The export of wood pellets for Balcas also continues to per form strongly.

This year also saw the heaviest lift ever undertaken at the Port when transformers for the Tomatin substation were brought in. At 193 tonnes they were the heaviest lifts so far to use the North Longman Quay.

Our efforts to attract cruise ships to the Capital of the Highlands started to come to fruition this year. The Variety Voyager, a 68 metre expedition

cruise ship, used the Port as its northern base for the whole summer season, resulting in a number of turnaround visits. The company recognised the benefits of Inverness with its excellent communications links by both rail and air as a base for passengers to both arrive and depart. We are indebted to Tomatin Distillery for their support. We have further visits planned for next year as cruise companies recognise our unique and niche offering.

We continue to closely monitor developments related to Brexit and are in regular contact with UK Government representatives to ensure minimal disruption to our business.

As part of our Trust Port status, we actively engage with stakeholders and the wider business community throughout the Highlands to promote the facilities on offer at the Port.


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In these increasingly uncertain times, it is worthwhile emphasising the importance of ports to the health and well-being of both local and national economies. In a recent study undertaken by the British Ports Association it was found that in the UK:

• ports bring £9.7 billion of direct value to the UK economy

• they provided 115,000 direct jobs within the ports sector in 2018, with 431,000 in the wider supply chain and 277,000 through wider spending - a total of 822,000

• each job is 55% more productive than the UK average

Sinclair Browne Chief Executive, Port of Inverness

Update on Inverness Maritime Heritage Trail 6

This year we received Sustrans funding to allow us to work up the indicative

proposals for a Maritime Heritage Trail that would provide improved connectivity between the City Centre and the Inverness Maritime Quarter, an area comprising Inverness Marina, the Port and land owned by the Port known as Harbour Gait.

Whilst the aim is to provide improved connectivity we are also keen to improve the experience of both the cyclists and pedestrians using this area. The Trail forms part of the National Cycle Network and is also heavily used by commuters cycling to work in Inverness from the Black Isle. With the increasing numbers of tourists using the

marina and dolphin trips, as well as visiting sailors and cruise ship passengers, there is the ideal opportunity to improve the route to the City Centre as well as encouraging adults and children to visit the area either by bike or on foot to learn about the rich maritime heritage of Inverness. We carried out a public consultation on the proposals and were delighted with the feedback. For the Trail to be successful we would encourage support from both public and private sector bodies as well as interest groups and the local community. Promoting a fitter and healthier lifestyle will be of considerable benefit to our community and future generations.

Port of Inverness Annual Report 2018Port of Inverness Annual Report 2019

Inverness Shore Heritage TrailThe Route


8 Harbour Master’s Report

Operations

The Port enjoyed an exceptionally successful year, handling a total of 758,575 tonnes, an increase of 20% overall on last year’s figure. The amount of cargo handled rose by 126,000 tonnes from 2017/18 with 60% of this down to a huge increase in the import and export of round logs.

Imports made up 578,529 tonnes of the cargoes handled and were up 15.7% on last year.

Round log imports increased massively, up 150%, with birch log cargoes from the Gulf of Finland heading for the Norbord plant at Morayhill.

Fuel oil imports remained steady at 255,000 tonnes. As a result of the mild winter imports of salt dropped to 47,000 tonnes.

Imported packaged timber was up 21.3% and tonnages of carbon blocks for the aluminium smelter in Fort William remained steady.

Exports rose 36% on the previous year to 180,046 tonnes with the volumes of Sterling Board exported increasing by 26.1% after the completion of the major modernisation of the Norbord facility. Norbord are planning to install another drying drum in the near future which should see the export tonnages increasing further.

Wood pellet volumes were also up by 15.2% and the export of woodchips remained steady after last year’s significant increase. Exported logs rose by 78% to 19,000 tonnes.

After a few quiet years grain exports resumed at the Port with a modest 10,000 tonnes handled.

The year was an extremely busy one for wind turbine equipment, with the Dorenell Wind Farm project running from April to October

and 59 complete 3 MW turbines imported through the Port.

The handling of the 13 complete 3 MW turbines for the Tom nan Clach Wind Farm which ran from July to October represented another first for the Port, with the 55 metre blades the longest we have handled so far.

Our heaviest lift to date also happened this year when SSE used the Port for the import of two 193 tonne transformers for their Tomatin sub-station upgrade. The transformers were delivered by a specialised heavy lift vessel and moved to site by ALE Heavy Haulage with dedicated 85 metre trailers.

In another first, ABCO Marine used the Port for the mobilisation and support of a modular jack-up for the Fort George outfall extension project. This went very well and will hopefully lead to similar work in the future.

Port maintenance and training

We continue to upgrade and improve our facilities as agreed in our 2017 Asset Management Plan. We carry out routine low water inspections of the Port’s infrastructure and cathodic protection measures have been carried out at Longman quays 1 & 2, with the installation of zinc anodes along their entire length. It is expected that Longman quays 3 & 4 will be similarly protected next year.

A new fire alarm system with remote monitoring has been fitted to Transit Shed 1, following on from an initial installation in Transit Shed 3 last year. A similar system is planned for our remaining Transit Shed 2 in the future.

We upgraded our CCTV system at the Longman quays to a HD wi-fi based system during the

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year and completely refurbished the weighbridge in December, fitting new load cells and electrical equipment. The five yearly fixed wiring inspection of the port has been carried out. All our hi-mast lighting has been lowered and thoroughly overhauled.

The Port’s two pilot vessels, PV Ardgowan & PV Carnarc, both continue to give excellent service. The PV Ardgowan completed her five yearly renewal survey this year and the PV Carnarc completed her mid-term survey.

We continue to meet our statutory obligations under the International Ship & Port Facility Security Code (ISPS), the Oil Spill (OPRC) Regulations, the Port Waste Management Regulations and most importantly the Port Marine Safety Code.

The Port Waste Management Plan was revalidated during the year. A full live trial of our ISPS system was held and all was found to be satisfactory. A full inspection of the Port’s security was also carried out by the Maritime Security Resilience Division (MSRD).

Various training courses were held for staff during the year. These included MCA 4p and 2p refreshers, Manual Handling, Abrasive Wheels, Working at Height and also attendance at a Pilots Management Resource Course.

The HSE visited the Port as part of their national port inspection programme to audit aspects of our H&S procedures and practices. This found the Port to be operating well, with our safety culture and safety documentation both commended. A further two-day H&S audit to benchmark the Port against the requirements of the OHS18001 standard, was also carried out again this year, by our PMSC Designated Person.


All navigation lights owned and in use by the Port are termed Category 2 Aids to Navigation (AtoN). They must meet “availability criteria for operation” as set down by the Northern Lighthouse Board and must be functioning for at least 99% of the year. Our navigation lights all operated in excess of this.

Environmental issues

On the environmental side, we continue to engage with the MF(SAC) Management Group and attend many other environmental body meetings.

The onerous Scottish Government proposal for the implementation of a Special Protection Area (SPA) for bird species around the Moray Firth, which would include all of our harbour waters is still ongoing. The Port is fully engaged with Marine Scotland and the environmental bodies to minimise any operational constraints caused by this issue.

Visits

Scotline’s latest new build vessel, the Scot Carrier, made her inaugural visit to Inverness in December. A sister vessel, the Scot Explorer, is expected to be built next year, being due into service around late summer 2019.

The Sandown class minehunter and sister to the now decommissioned HMS Inverness, HMS Ramsay, made a layover call to the Port. Several local groups and schools were invited aboard the vessel during her stay.

Captain Ken Maclean Harbour Master, Port of Inverness

Susan Clark - Vice Chair

Susan was brought up in a family business environment and on graduating spent over 20 years in a variety of senior management roles across the rail, water and construction sectors. Susan now runs her own consultancy business which specialises in renewables, community projects and assisting small businesses setting up business processes and reviewing governance. Susan is Chair of the Glenurquhart Rural Community Association and Secretary of the Glenurquhart Highland Gathering & Games and is heavily involved in voluntary activities in her local community.

Brian Sherret

In 2001 Brian was part of the Team that set up Grampian Highland Resources Limited (GHRL), one of Scotland’s leading Interim Management and Business Support providers. The business was sold last year to allow Brian more time to spend with his family. Brian’s key interests lie in service innovation and business development. Prior to GHRL, Brian spent 21 years in the Shipping & Logistics industry, particularly in support of the oil and gas sector.

The Board April 2018 to March 2019

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Angus Mackenzie - Chairman

A native of Inverness, Angus is a chartered accountant who worked in the Highlands and Islands for Ernst & Young for 19 years, 15 of which were as a partner. Since then he has held various directorships, including board membership of Highlands & Islands Enterprise from 2003 to 2011, and in his own family start-up company which was sold in 2009. Appointed to the chair in 2014, Angus has been a trustee since 2010.

Russell Thomson

Following ten years’ service as a deck officer in the Merchant Navy, Russell moved ashore to the Isle of Skye in 1989 to take up the position of port manager with Caledonian MacBrayne on the Kyle-Kyleakin Service. On closure of the ferry route, he became Skye Bridge manager and then moved to Inverness in 2004 when he secured the position of waterway manager for the Caledonian Canal. Russell now serves as head of customer operations for Scottish Canals and, whilst this is a Scotland wide role, he remains based in Inverness.


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David Taylor

A Fellow of the Institution of Civil Engineers with 40 years’ experience in the construction industry, David managed offices for national and international consulting engineering companies including some 15 years as company director. As regional manager for AECOM in Inverness he was responsible for the delivery of infrastructure projects in both the public and private sector with emphasis on H&S, technical quality and client satisfaction. These skills have allowed David to invest time and deliver a variety of community projects.

Catriona Maclean

Catriona is Head of the Rural Economy and Communities Division within the Scottish Government. The Division has a wide ranging remit which includes developing a vision for rural Scotland with supporting actions to deliver it, raising awareness of rural issues both in and out-with Government, influencing others to deliver rural priorities and providing small scale grants to create community cohesion.

Previously Catriona was the chief executive of the Crofting Commission. Born in Glasgow, Catriona returned with her parents to their native Lewis, where she finished her education at The Nicolson Institute before moving to Inverness. Catriona is a lay member of the Law Society for Scotland.

Sinclair Browne - Chief Executive

Sinclair Browne was appointed chief executive of Inverness Harbour Trust in July 2011 and is a qualified chartered surveyor. He has over 30 years’ experience in the commercial property market where he was involved in a number of high profile projects. Before joining the Harbour Trust he was a partner in an international firm of property consultants. Sinclair is a non-executive director of the Highland Housing Alliance and a former non-executive director of Inverness Chamber of Commerce.

Graham Phillips

Graham Phillips has over 35 years of consulting experience at the highest level, specialising in large-scale project delivery, procurement, risk management and strategy. A Highland Councillor from 2012 to 2017, Graham served as Chair of the Transport, Environmental and Community Services Committee for two years when he was also a director of HITRANS, then as Vice-Chair of Audit and Scrutiny. He chaired the Harbours Board for five years, delivering a business strategy. He moved from the Borders to Sutherland in 2003.

George Macleod

George Macleod has over 40 years of experience in oil and gas/marine engineering in senior executive and company director roles. A Fellow of the Institute of Directors, he has held many directorships over the years. George has considerable experience in international project management, contract negotiations, business development and management. Having recently sold his shipping business he is currently managing director of the family business which covers marine consultancy, property development and construction. He was born and brought up in the Highlands.


Port of InvernessA Trust Port

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Ships and boats have been using Inverness

Harbour for more than 2,000 years. The

first Inverness Harbour Trust was formed by

seven councillors, five merchants and five

ship owners after parliament passed the first

Harbour Act in 1847. This marked the start

of the modernisation and development of the

port – a process that continues today.

What is a Trust Port?

Trust Ports like the Port of Inverness are

independent statutory bodies, whose powers,

structures and functions are set out in local

legislation - Harbour Orders. Trusts operate on a

commercial basis, independently of government

and in line with their local legislation and good

business practice. Trust Ports are independent

but are accountable to their local stakeholders.

They cannot be owned by other companies or

shareholders and reinvest their profits for the

benefit of the port and its stakeholders.

The guidelines and laws surrounding Trust Ports

have been updated a number of times since our

foundation in 1847. Most recently, in January

2002, the Government completed their review

of Trust Ports and published “Modernising Trust

Ports – A Guide to Good Governance”. This

guide outlines standards of accountability for all

ports in the UK, including the Port of Inverness.

We now have eight trustees, appointed by the

harbour following strict guidelines and with

assistance from an independent assessor.

The chief executive also sits on the Board.

Commercial Activities

As a Trust Port we rely on income from port

users. Our income comes from different

activities:

• piloting ships in and out of the Port;

• dues paid by companies for loading and

unloading cargoes; and

• berthing fees paid by individuals keeping

yachts in the marina.

As one of Scotland’s most sheltered deep

water harbours, Inverness is well placed to

handle trade between the UK and countries in

Scandinavia, the European Union, the Baltics,

Turkey and the Mediterranean.

A diverse range of cargo passes through the

harbour, including wind turbines, oil, timber,

carbon blocks, wood pellets, Sterling Board,

logs, road salt and grain. Our customers have

access to spacious, modern transit sheds

as well as large areas of open storage.

The marina is owned and managed by Inverness

Marina Limited, a company jointly owned by

Inverness Harbour Trust and Caley Marina.

With 150 berths and a full range of high quality

facilities including showers, toilets, a laundry

and electricity and fresh water on all berths, the

marina is an established destination for sailors,

attracting enthusiasts from all over the world.

The marina features one of the most up-to-date

boat hoists in Europe which can lift large and

small craft, allowing us to cater for yachts of

all sizes.


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SUMMARY OF RESULTS

The Trust returned a net surplus for the 12 months to 31 March 2019 of £403,990. A summary of the

result is shown below:

FIVE YEAR STATISTICAL REVIEW

2018/19 2017/18 2016/17 2015/16 2013/15

Number of ships arriving 242 194 229 258 309

Gross Tonnage (‘000) 654 528 606 653 775

Goods throughput (‘000 tonnes) 759 632 625 699 898

Turnover (£000’s) 1,828 1,331 1,423 1,506 1,811

Surplus/(Deficit) for year (£000’s) 404 15 147 219 202

BALANCE SHEET

The Trust had net assets of £9,032,857 at 31 March 2019 (March 2018 - £8,628,867) a summary of

which is shown below:

Full Accounts audited by Johnston Carmichael CA are available for inspection at the Harbour Office.

2019 2018 £ £

Turnover 1,829,372 1,331,709

Costs and Overheads 1,440,159 1,269,223

Operating Surplus/(Deficit) 389,213 62,489

Investment Income 50,820 1,219

Interest Payable 38,043 48,651

Gains/(Losses) on Sale of Assets & Investments 0 0

Surplus/(Deficit) 403,990 15,054

2019 2018 £ £

Fixed Assets including under Construction 11,129,624 11,435,504

Current Assets 1,249,278 1,006,667

Long Term Debtors 0 0

Current Liabilities (500,721) (486,796)

Deferred Income (1,811,174) (1,889,194)

Long Term Liabilities (673,253) (1,044,342)

Provisions (360,897) (392,972)

Net Assets 9,032,857 8,628,867


Inverness Harbour Trust Accounts

For more information about the port, please contact

Sinclair Browne

Chief Executive

Tel: 01463 715715

Email: [email protected]


Documents

Annual Report 2019 - Port of Inverness