Transcript Presentation by John Hulmes, Chairman at Mersey Maritime

What is the health of the
Maritime sector in the
Liverpool City Region?
John Hulmes
Chairman of Mersey Maritime.
MERSEY MARITIME
A DRIVING FORCE
FOR THE
MARITIME SECTOR
ON MERSEYSIDE
John Hulmes
Chairman
Mersey Maritime
July 2014
Introduction
• Putting matters in context.
• Liverpool – the historical importance as a maritime giant.
• The decline of the Liverpool Maritime Industry.
• Maritime Insurance Industry – was 2nd biggest in the world.
• Perception that maritime no longer a key economic driver for the
region.
Introduction 2
“Given that shipping carries around 90% of world trade, we need it for
the global economy to function. In fact, the shipping industry could be
called a barometer of the world economy.”
Siim Kallas, Vice President of the European Commission in a keynote
speech at Posidonia on 2nd June 2014
Fisher Report 2007
The Fisher Report advised that the local maritime sector (the report was based on
Merseyside):
• Generated 26,440 jobs of which 20,540 were direct and 5,900
indirect/induced.
• The jobs had a significantly greater GVA (Gross Value Added) than the average
for the region (£34.600 c.f. £27,620).
• The sector accounted for about 5% - 5.5% of the total GVA of the region.
• There were 1,001 limited companies engaged in the sector but this figure did
not take account of sole traders and partnerships. Further data has indicated
that there are about 1700 companies in the maritime sector.
How did the recession affect the
local maritime sector and what is
the current position?
Jim Teasdale – CEO of Mersey Maritime Group
“There can be no doubt when you look at the maritime sector on
Merseyside today that it is in good health. Confidence and investment
are both high, with significant infrastructure developments and an
estimated 30,000 news jobs being created by 2030.”
“…maritime businesses in this part of the country emerged from
recession quicker and in better health than in many other parts of the
UK, with the promise of further growth to come.”
Port of Liverpool
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From the mouth of the Mersey to Port Salford.
6th largest port by volume 32.9m tonnes in 2012.
Investment in Port Salford - £138m
Gladstone lock refurbishment -£9m
Feedstock refurbishment - £8m
Steel terminal £3 m
Etc.
Liverpool2
• £300 million in-river berth.
• To handle largest container vessels.
• Due to open 3rd quarter 2015.
Other Ports in region
• ABP at Garston
• Quality Freight Group at Ellesmere Port
• Port of Mostyn
• Victoria Group at Mersey Wharf, Bromborough
SuperPort 1
“SuperPort seeks to bring together the different modes of
transport and logistics within the region with a view to
presenting a multimodal hub that can match the other great
centres of the world.”
SuperPort 2
“Economic analysis by AMION Consulting, based on available
trend and capital investment project intelligence, has forecast
the potential for over 21,000 new jobs and an additional
£6.1bn of GVA to be created through SuperPort by 2020 and
nearly 30,000 new jobs and an additional £18.3bn of GVA by
2030.”
SuperPort Action Plan 2011 – 2020.
SuperPort -3 - Infrastructure
A key part of the SuperPort strategy involves getting the infrastructure
right in the region.
• One key element of this is the construction of a new bridge carrying a
6-lane highway across the River Mersey at Runcorn. This £1.86 billion
project will be completed by 2017.
• George Osborne announced in June 2014 (whilst visiting Liverpool, July
2014) a package of £38 million to improve transport infrastructure in
the region.
• News is still awaited regarding proposals for an improvement in the
access road between the Port of Liverpool and the motorway network.
Gateway to America
• Atlantic Container Line is the leading independent shipping line serving the UK and the
USA, operating 5 services a week to and from Liverpool. ACL have indicated their
confidence in Liverpool by
• Ordering 5 new vessels worth over $300 million and which will add 100% capacity to
their routes across the Atlantic. The vessels are under construction and are due for
delivery within 18 months; and
• Entering a long term contract with the Port of Liverpool; and
• Commissioning a new HQ to be built in Liverpool.
• A significant increase in staff based in Liverpool.
• Independent Container Line also have weekly service and are investing in the region
including new HQ in Liverpool.
Shipbuilding and Marine Engineering - 1
• This local sector has shown remarkable resilience over the last few years
and Cammell Laird is now recognised as the largest and most successful
ship repair and conversion specialist in the UK.
• The yard has recently completed the decks for the two aircraft carriers
being built for the Royal Navy (the HMS Queen Elizabeth was named at
Rosyth Shipyard by the Queen on 4th July 2014) and the yard is now part
way through a £47 million refit of the support vessel Fort Victoria.
• Now with over 2000 direct workforce and considerable supply chain in
the region.
Shipbuilding and Marine Engineering - 2
• Cammell Laird docked 24 ferries between 2013 and the beginning of
2014 and carried out a further 24 afloat repairs for ferry operators.
• During 2013 Cammell Laird repaired, built and converted almost
250,000 gross tons of ferry and Ro-Ro ships for a wide range of owners.
• Already in 2014 it has docked and repaired ferries of 150,000 gross
tons.
• Last year the yard also launched 2 ferries built for Western Ferries,
showing a return to the traditions of shipbuilding on the Mersey.
• In addition, McTay Shipyard - £1 million upgrade of its slipway and has
recently won a contract for building a number of specialist refuse
barges for the River Thames.
Liner Agents
• Liverpool has become a centre of excellence for the container line
industry with many of the world’s leading container lines having their
UK headquarters based in Liverpool.
• These include: ACL, CMA CGM, CSAV, Independent Container Line,
MacAndrews, Maersk and Zim.
• Together these lines amount for about 1,000 jobs, the majority of
which are above the average GVA for employees.
Marine Manufacture
• Need for a study to be carried out to find the full extent of the marine
manufacturing (including marine engineering) within the Liverpool
City Region.
• Every week there appears to be news from another marine
manufacturer who has previously been under the radar.
• Examples include: International Safety Products, MST Ltd. Trelleborg
(formerly Sea Technic).
Cruise Terminals
• Liverpool City Council invested in a £23 million pound Cruise Terminal at
the Pier Head in Liverpool and which opened in 2007.
• The world’s largest liners can now berth right in the heart of Liverpool
and adjacent to the “Three Graces” at Pie Head.
• Although the direct employment from the Cruise Terminal is relatively
small, the induced/indirect employment is significant.
• Each visit of a Cruise Terminal adds over £1 million to the local economy.
• Cruise ships in heart of city are an excellent way to remind people of the
importance of the maritime industry.
• Visit of the 3 Queens in 2015 – key part of Cunard’s 175th celebrations.
Offshore Renewables and Nuclear Industries
• The Offshore Renewable developments are the largest capital
investments ever to be undertaken in the region.
• A greater than £2billion project, Gwynt y Môr will consist of 160
turbines and is being built by RWE Innogy UK (formerly RWE npower
renewables) in Liverpool Bay, off the North Wales coast.
• Huge benefits for local maritime sector.
• The nuclear industry potential.
Shipping Services
• Although London world leader for Shipping Services,
Liverpool probably number 2 in England.
• Ship Management.
• Lawyers. Hill Dickinson. Brabners. Weightmans.
• Marine Surveyors.
• Loss Adjusters.
• Commodities - Cotton
• Etc.
Yacht and Leisure Craft.
• Remaining marine insurance industry including Groves John and
Westrup
• Part of the regeneration of the central docks.
• New £22m canal linking northern and central docks.
• Liverpool Marina – 350 permanent moorings.
• Groves John and Westrup.
• Etc.
Conclusions
• There is good reason to believe that the Maritime Sector has been a
key success over the last few years and that it has not only survived
the recession but has come out stronger and more dynamic.
• The investment already in place and the investment already
committed for the next few years is clear evidence that maritime is
an increasing factor in the regeneration of the local economy.
• The “barometer” - clearly the mercury is rising, which is a strong
indicator that there is cause for optimism in the region, not just for
the maritime sector but for the economy in general.
More detailed paper to be
circulated after the conference.
Questions
John Hulmes
Partner at Hill Dickinson LLP
T: 0151 600 8238
M: 07715 376660
E: [email protected]