Harwich Haven Authority Performance Report 2010/11

Harwich Haven Authority

PERFORMANCE REPORT 2010/11

Harwich Haven Authority

PERFORMANCE REPORT 2010/11

CONTENTS 1

ABOUT HARWICH HAVEN AUTHORITY

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CHAIRMAN’S REPORT

10

A BALANCED VIEW

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A FAIR WIND: SUPPORTING THE WORLD’S TWO LARGEST WIND FARMS

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DEEPER, WIDER, HIGHER: FELIXSTOWE MOVES AHEAD

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MAKING THINGS HAPPEN

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COMMUNITY CONNECTIONS

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FINANCIAL FACTS

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HARWICH HAVEN AUTHORITY BOARD

Photographs courtesy of Graeme Ewens and John Cooper

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

ABOUT harwich haven authority H

arwich Haven Authority (HHA) was established by Act of Parliament in 1863 to safeguard the best natural haven on the east coast of England. Its jurisdiction covers the River Stour, the lower part of the River Orwell, Harwich Harbour and an area to seaward extending 12 nautical miles from the harbour entrance and covering 150 square miles.

As the conservancy and pilotage authority, HHA provides services for shipping using the commercial ports of Felixstowe, Ipswich, Harwich International, Harwich Navyard and Mistley and also boarding and landing services for the rivers Thames, Medway, Blackwater, Colne and Crouch.

Purpose To conserve, protect, regulate, maintain and improve the Haven and its environment, based on the principles of sustainability for the benefit of all its users.

Mission HHA aims to run a safe, efficient, cost-effective harbour operation based on the principles of sustainability for the benefit of all port users and the wider community.

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CHAIRMAN’S REPORT H

arwich Haven Authority is a trust port – a statutory harbour authority governed by an independent board charged with acting in the interests of its stakeholders. It derives its income from conservancy and pilotage charges on commercial shipping. It receives no public funding; it does not issue, nor is required to pay a dividend or any form of equity to any entity being either public or private. Any surplus from operations is reinvested for the provision and/ or improvement of facilities.

Tim Clarke Chairman

The Authority was established by Act of Parliament in 1863 in order to safeguard the best natural haven on the East Coast of England. The Board’s general duty is to conserve, protect and improve Harwich Harbour and its approaches for the benefit of all its users. Its jurisdiction covers the River Stour, the lower part of the River Orwell, Harwich Harbour and an area to seaward extending 12 nautical miles from the harbour entrance covering 150 square miles. It provides services for shipping using the commercial ports of Felixstowe, Harwich International, Harwich Navyard, Ipswich and Mistley and also pilot boarding and landing services for vessels bound for the rivers Thames, Medway, Blackwater, Colne and Crouch.

The Board consists in total of 10 members, two executive members and eight part-time non-executive members. The Secretary of State for Transport appoints the Chairman and four non-executive members and the Authority appoints three non-executive and two executive members. Philip Roland and Roger Morris were appointed to the Board in January 2010, taking up the positions vacated

by Dr Derek Langslow and Robert Smith.

As port and cargo handling operations within the harbour have grown in recent years, the Authority’s responsibilities and marine operations have increased significantly. It provides and maintains deep water seaward approach channels and berth dredging according to commercial requirements. In carrying out its responsibility the Authority is concerned in maintaining a proper balance between the needs of commercial shipping, leisure users and the environment.

Business Review Consolidation of deep-sea container services continues to be a feature in traffic patterns with a further consequential reduction in ship calls. This reduction was partially mitigated by the continuation of offshore wind farm projects which resulted in total ship calls falling by 20.9% to 6,994 (2009 8,844). Ship arrivals of deep drafted vessels in excess of 15,750 gross tons fell by 11.2% to 1,695 (2009 1,908).

6,994 ships totalling 190.4 million gross tons made entry to the Harbour during 2010, a decrease of 5,642 ships and a decrease in tonnage of 4.267 million gross tons on the previous year. These figures represent a decrease in ship calls of 20.9% and a decrease in gross tonnage of 2.9% on the previous year.

The Authority undertook 7,426 (2009 7,825) full pilotage acts during the year, a decrease of

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HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

View from pilot launch of a Maersk container vessel

399 compared with 2009 equating to 5.1%. The continued movement towards ever increasing ship size has had a detrimental effect on the number of pilotage acts undertaken by the Authority although this has been offset this year by the additional activity generated by offshore renewables work.

The surplus on ordinary activities of £1.573m after taxation was transferred to reserves.

Operating revenue was £20.9m, a fall of £1.4m.

Operating costs rose £1.4m prior to one-off pension payments and FRS17 adjustments.

PIlOT lAuncH – nEw BuIld

After one-off pension costs and FRS17 adjustments of £1.04m the surplus before taxation of £1.926m comprises a General Fund surplus of £1.336m and a surplus of £590k in relation to the secured surcharge revenue account, restricted to its use under the terms of a loan.

The Authority repaid £1.336m of loan debt during the year reducing net debt by £2.533m to £4.266m

fIxEd ASSETS Total capital expenditure for the year was £1.441m.

During 2010 the Authority took delivery of the first of its new class of pilot launches. The second launch was delivered in August 2011.

The contract allows for commitment to up to a maximum of four vessels under the original tender process.

vESSEl TRAffIc SERvIcE Following a period of evaluation and negotiation, STN ATLAS were contracted to provide an upgrade to the VTS. This upgrade

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commenced during 2010 and was completed in September 2011.

Computer Equipment The information technology and communications equipment upgrade and improvement programme continued throughout the year.

Health & Safety Performance Accident statistics for 2010 show a total of 10 accidents (2009: 11) of which two (2009: 1) were classed as Lost Time Accidents (absence from employment of three days or more) as defined by RIDDOR Regulations. The Authority’s performance in this respect remains better than the sector average as compiled by Ports Skills & Safety.

Slips, trips and falls were identified as the main root cause of accidents. Enhanced targets for performance improvements have been established along with a training programme for 2011.

Marine Safety Performance Throughout 2010 the Authority was in full compliance with the Port Marine Safety Code (PMSC). This included an annual external independent audit together with an internal audit of the Authority’s Safety Management System against the PMSC.

Marine Incident Summary

2010

2009

Level 1 Level 2 Level 1 Level 2 Total Incidents

0

9

0

8

Incidents per 10,000 ship movements

0

4.2

0

3.4

Note: Level 1 incident: serious structural damage or risk of causing death / serious injury, major pollution, channel or berth obstruction.

Level 2 incidents: little of no risk to personnel or environment, minor or no structural damage, no risk to sea going integrity.

Continuous analysis of incidents has identified the need for a small number of corrective actions that have been implemented throughout the year.

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In accordance with the updated guidance to the Code, the Authority has a Safety Plan as to demonstrate how the standard in the Code will be met: Harwich Haven Authority is committed to discharging all of its statutory duties and to remaining open, accountable and fit for purpose. Its plan to manage the safety of marine operations is to comply with all of the requirements of the Port Marine Safety Code and to follow the guidance in the Guide to Good Practice on Port Marine Operations.

In doing so it will, despite commercial pressures: • Take reasonable care so that all who may choose to navigate in the Haven may do so without danger to their lives or property.

• Conserve and promote the safe use of the Haven.

• Have regard to safety, efficiency, and economy of marine operations.

• Take such action that is necessary or desirable for the maintenance, operation, improvement or conservancy of the Haven.

Harwich Haven Authority will base its powers and policies on a formal assessment of hazards and risks and it will maintain a formal safety management system which will ensure that all risks are managed so that they are as low as reasonably practicable. It will employ and engage competent and qualified staff and contractors.

It has appointed a Designated Person who will regularly conduct internal compliance audits in accordance with the Port Marine Safety Code and who will report directly to the Board.

Additionally, independent external experts will periodically conduct an external audit and the expert’s report will be presented to the Board. The Designated Person and the external auditors shall assess in their reports the Authority’s performance against its plan of complying with all of the requirements of the Port Marine Safety Code and to following the guidance in the Guide to Good Practice on Port Marine Operations.

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Additionally the Authority has continued a much wider review, in conjunction with Government and Industry bodies, on incident reporting generally and more specifically with regard to certain types of incidents relating to vessel machinery. It is anticipated this could enable a better UK-wide understanding to be gained of these issues in order to then develop improvements and a reduction of related incidents.

EnvIROnMEnTAl PERfORMAncE The Authority has continued to work effectively with regulators, advisors and stakeholders in respect of the various environmental compensation, mitigation and monitoring works that are undertaken within the Haven. The formal report to the Regulators Group for 2010 continues to demonstrate compliance with all the requirements of various project consents and that the estuaries are generally in good health.

Condition assessment of the estuaries by Natural England during 2010 has led to a significant upgrading of large areas of especially the Stour which are now deemed to be in good condition relative to the assessments of 10 years ago. Further understanding of bird count data remains a high priority as this is a key factor used by Natural England in determining condition assessments of the SSSI and SPA. The Authority submitted its report on Climate Change Adaptation at the turn of the year as required under this new legislation.

A variety of oil spill recovery exercises were conducted in 2010 with some specific solely to HHA preparation and with others involving external agencies and organisations.

A formal management review and external audit of the Environmental Management System (EMS) has been undertaken at the turn of the year with the result that the Authority continues to maintain its ISO accreditation.

SEcuRITy The Haven Ports Security Forum continues to co-ordinate common issues within the Haven

in addition to the Authority’s focus on its own role in ensuring security plans are kept up-todate and relevant.

cORPORATE gOvERnAncE/ REvIEw Of cORPORATE STRucTuRE The Authority undertook a review of its corporate structure in 2010. The findings of the review concluded that the Authority is best served by its current corporate structure. This position is based upon the Authority continuing to demonstrate the delivery of efficiencies and asset value along equivalent lines to that which the disciplines and incentives that private sector investors would achieve.

As part of that review the Authority reconfirmed its core functions and objectives as follows:

funcTIOnS • The conservancy of Harwich Haven and its approaches, including licensing third party works, surveys and dredging.

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• The regulation of shipping in the Haven and the Harwich seaward area.

• Pilotage in the Haven pilotage area.

Objectives 1. To run a safe and efficient, cost effective harbour operation on a commercial and internationally competitive basis.

2. To conserve, protect, regulate, and improve the harbour whilst maintaining a consistent and sustainable level of services.

3. To ensure a structure that meets the needs of all port and harbour users on a fair and equitable basis.

4. To meet the environmental commitments and regulatory obligations of the Authority.

5. To ensure the operations of the Authority are undertaken on an accountable, open and transparent basis.

Stakeholder liaison The Authority has continued to actively engage with all its stakeholders both informally by

way of its day-to-day business and also by the various formal established forums listed below: • Haven Ports Pilotage Committee • Haven Towage Liaison meetings • Harbour Liaison meeting • Navigational Safety Committee • Leisure Vessels Navigation sub-committee • Stour & Orwell Estuary Management Forum • Fisheries Liaison • Harwich Regeneration • Felixstowe & Trimley’s Futures Group • Local Authority Liaison Groups • Landguard Partnership The Authority remains a core member of the Haven Gateway Partnership

HHA’s multi-purpose/oil response vessel Haven Hornbill

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This ongoing approach to wide stakeholder liaison continues to provide very productive

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Cruise vessel and jack-up barge at Harwich International port

and preferred forums for communications and consultation in place of an open meeting.

EMERgEncy PlAnnIng The Authority has continued to keep its three main emergency and contingency plans and overall general preparedness up-to-date in conjunction with all other involved parties as listed below: 1. HHA Emergency Procedures (incorporating Harwich Combined Accident Plan) 2. Resilience Forums (Civil Contingencies) 3. Haven Oil Working Group (HOWG)

ISSuES fOR THE yEAR AHEAd Although volume and activity across the Haven Ports has seen a recovery in principle to levels similar to those of 2008 there remains a degree of uncertainty for the short term.

Notwithstanding this uncertainty the Haven Ports continue to ensure that spare capacity is in place to best position themselves to compete for trade growth as/when it materialises. This should be seen in the positive context that the Haven, and its mix of port facilities, are in the sector for the long haul at a time when other ports continue to remain more pessimistic about their prospects and accordingly have not meaningfully progressed expansion and development plans.

SupporT It remains the role of this Authority to provide all it can to support the future competitiveness of the Haven Ports. Ongoing and potential additional support to the construction of offshore renewables will provide welcome activity. With the marine and civil works at Felixstowe South effectively completed the developers of this important additional port capacity continued to work on the delivery and commissioning of handling equipment and

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operational trials in advance of full operation which commenced in September 2011.

As container vessels size continues to increase the Authority is well placed to handle this trade with its existing deep-water access.

Already regularly handling the largest vessels in service (14,000 ~ 15,500 teu) the Haven is also capable of handling the next generation of vessels (18,000 teu) that have now been ordered and expected to be in service by 2013.

The Authority remains proactive in this respect and is already undertaking studies to evaluate further capital deepening should the need arise at some time in the future.

Elsewhere in the UK other consented competitor developments, notably London Gateway, the Northern Gateway, Southampton and Liverpool, continue to defer the commencement of meaningful construction

until long term prospects and firm user commitments are secured. More recently London Gateway has announced an intention to commence operations in Q4 2013.

A target has been set for further reductions in all occupational health and safety accidents and for increased reporting of incidents.

Specific training needs to be identified with respect to a range of activities including, but not limited to, slips, trips and falls, manual handling and COSHH. A number of navigational safety objectives have been established for the year, aimed especially at those areas of performance highlighted through the investigation of incidents during 2010.

Emphasis will continue with regard to the Compensation, Mitigation and Monitoring schemes, as identified by the Regulators Group.

Additional activities for the period ahead include: • An external audit of Port Marine Safety Code activities • Launch replacement programme to progress following the delivery of the second launch and its operational evaluation prior to considering the further options available • Pilots’ National Pension Fund – further court decision expected within this year • Review of maintenance dredge disposal sites to consider alternate locations giving environmental and cost benefits

The Board and Staff The Authority was in full compliance with the DfT Guide to Good Governance for Trust Ports throughout 2010 and 2011.

Harwich Sea Festival

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It has been a very busy year for the Authority, ensuring capital programmes have been introduced effectively while maintaining our focus on the running and development of day-to-day business. All our staff should be

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

MSC vessels at the port of Felixstowe

congratulated for their efforts in driving the improvements which help to fulfil the Authority’s purpose and mission. This remains a critical success factor for Harwich Haven Authority.

The Board also wishes to thank all its stakeholders for their continued support in 2010 and 2011.

cHARITABlE dOnATIOnS Total charitable donations of ÂŁ13,351 were made during 2010.

Tim Clarke Chairman

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ACTIVITY UPDATE

A balanced view H

arwich Haven Authority has a very strong environmental record – with a reputation for excellence based on a range of successful compensation, mitigation and monitoring programmes within the Haven.

At the heart of this work is the need to recognise the impact of port operations and expansion, balancing commercial activities with the needs of other port and harbour users, the interests of the local community, and the protection and enhancement of the natural environment.

The Stour and Orwell form one of the UK’s most beautiful estuaries and the area is recognised at European level for the importance of its environment and wildlife, in a number of European designations. Both rivers are designated Special Protection Areas (SPA) and Sites of Special Scientific Interest (SSSI).

Some of the Haven’s ‘headline’ environmental projects, such as the creation of Trimley Marshes intertidal habitat, date back to the major capital dredge of the deepwater channel in 2000. More recently, the deepwater expansion at Felixstowe,

completed this year, has created a renewed focus on the impact of major port developments, with additional mitigation and monitoring work being put in place.

Harwich Haven Authority was a joint applicant with Hutchison Ports UK in the Bathside Bay and Felixstowe South consenting process, in its capacity as dredging authority and licence holder for the project.

But away from the headlines, real commitment to the environment is very much an ongoing, day-to-day matter. It involves close liaison and cooperation with wildlife groups and governmental agencies; constant monitoring and measurement of water quality, silting and erosion; regular counts of bird numbers; and systematic monitoring of plant and wildlife.

progress A recent independent ‘health check’ of the Stour and Orwell underlined the Authority’s progress and achievements in the environmental field.

Natural England has responsibility for a rolling programme of condition assessments of SSSIs, which re-examine the particular attributes for which an SSSI was originally designated – such as habitat areas, salt marsh areas, plant life and bird numbers.

For Harwich Haven Authority, there was a real ‘gold star’ result, with Natural England concluding that both areas were in considerably better condition than when last monitored in the early 2000s. Meanwhile, the Authority’s own monitoring programme, working with consultants and including a new LiDAR survey, indicates a very stable situation in the estuary.

The River Stour looking towards Harwich International Port

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During 2011, the environmental focus has taken Harwich Haven Authority into a new

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Cruise vessel leaving Harwich Harbour

arena, as a key stakeholder in the discussions around the formation of England’s new Marine Conservation Zones (MCZ).

These MCZs are to be designated under the UK’s Marine and Coastal Access Act 2009, and will co-exist with European designated marine sites. This is because the European directives and designations protect species and habitats of European importance – the MCZs will, for the first time, protect marine wildlife, habitats, geology and geomorphology of national importance that are not already protected.

goINg ForWArD Four regional, time-limited projects, covering the North Sea, South East, South West and North West, were set up by Natural England and the Joint Nature Conservation Committee (JNCC), under Defra, to deliver recommendations on potential MCZ sites. Harwich Haven Authority’s area of statutory responsibility means that it overlaps, and has clear interest in, two of these – Balanced Seas, covering the South East, and Net Gain, covering the North Sea.

The Authority contributed its views and expertise to regional stakeholder group meetings held during 2011. The process now moves on to the publication of draft regional summary impact assessments, and the regional projects are being wound down.

Natural England and JNCC are due to submit collated MCZ recommendations and draft advice to Defra by the end of November 2011, and the process will continue in 2012 with final impact assessments, recommendations by Defra and three months of public consultation.

The government is due to designate the Marine Conservation Zones at the end of 2012.

Balanced Seas has stated that the challenge is to balance the importance of biodiversity conservation with economic activity. There are proposals that the entirety of the Stour and Orwell are designated as an MCZ and, while still respecting the need for such protection, Harwich Haven Authority will continue working to ensure that harbour users are not restricted by any such designation.

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ACTIVITY UPDATE

A fair wind: supporting the world’s two largest wind farms ‘A

huge market with big opportunities for ports’ is how one consultant has summed up the UK’s rapidly developing offshore wind farm sector. But this is also a highly competitive arena, with many ports around the UK positioning and even ‘rebranding’ themselves in the hope of winning major contracts supporting manufacturing, assembly, construction, operation and maintenance of offshore wind turbines.

Harwich International Port – together with associated companies in the wider Haven – possesses the undoubted advantage of

having already proved itself; HIP’s work supporting Dong Energy’s 48-turbine Gunfleet Sands development, completed nearly two years ago, followed by contracts for the much larger Greater Gabbard and London Array installations, both under way, has demonstrated the port’s abilities.

The wind turbine industry has a clear list of requirements when searching for the ideal ‘support port’ – the right location, sheltered berthing, ease of access, no lock restrictions or air draught limits, experienced and professional stevedores and other port staff, and plenty of room behind the quay. Harwich, so well placed for the major developments off Britain’s east coast and providing the right package of facilities and service, ticks all the boxes. It has already been recognised by many as the leading port in the UK for this industry, and one of Europe’s top ports/harbours in this market.

support At present, the Greater Gabbard and London Array installations – currently the world’s largest two wind farms – are being run out of HIP simultaneously, with close support from Harwich Haven Authority.

Offshore construction vessels

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Greater Gabbard, a joint venture between SSE and RWE npower renewables, is due to complete by the end of 2011. With a capacity of 500 MW, it consists of 140 wind turbines; two offshore substation platforms; and three 45 kilometre long export cables to bring the power onshore, with a connection to the national transmission network at Sizewell.

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Wind turbine components being transported by barge

The 1,000 MW London Array, being developed by Dong Energy, E.ON and Masdar, is the world’s largest consented wind farm. It is being built in two phases; the first phase, due to complete at the end of 2012, will have 175 turbines.

CoMMITMeNT Early in 2011, Harwich International Port signed a contract with the project’s installation contractor, Aarsleff Bilfinger Berger Joint Venture (ABJV), to act as its UK installation port for phase one, with operations beginning out of Harwich in March.

Both developments have brought a high level of work not only for the port but also for local companies. But there are key differences which have required a flexible approach by all involved.

Windfarm support vessel Deep Cygnus

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In the Greater Gabbard project, all the turbines have arrived at Harwich by coaster, to be discharged into a storage area and then subsequently loaded out on to installation vessels.

gETTING BIGGER

While Greater Gabbard and the London Array are breaking records at present, Round 3 will see the UK’s offshore wind power sector move up several gears. It will provide a total of 7,000 turbines around Britain’s coast, with at least 3,000 of these being off the East of England, from the Wash down.

In May 2011, HIP welcomed the maiden call of the MPI Adventure, which arrived from a shipyard in China to start work on the London Array project. At 19,533 tons, it was by far the largest wind turbine installation vessel to enter the port to date.

Clearly, this means enormous opportunities for the Haven ports. The new East Anglia zone features 7,200 MW of wind power, and planning is already under way for the first development within this, the East Anglia Offshore Wind Farm. Although installation work will not

In the London Array project, the turbines arrived by barge and were loaded directly from barge to installation vessels, to be taken out to the site.

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The MPI Adventure joined the jack-up vessel Seaworker installing monopole foundations and transition pieces.

HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

start until 2015, potential Round 3 developers and manufacturers are already looking into their supply chain arrangements and, not surprisingly, there is enormous interest in Harwich, one of the few UK ports/harbours large enough to handle work on this scale.

Map showing the location of the Gabbard and Galloper wind farm

Sizewell Substation

Meanwhile, the London Array phase two is on the horizon, and approval has been granted for an extension to Greater Gabbard.

To date, those involved in supporting wind farm development have included not only Harwich International Port but also Felixstowe, Harwich Navyard, Mistley, Brightlingsea and a number of local companies.

Felixstowe Harwich

Inner Gabbard

SupporT BASe

Galloper

Harwich Haven Authority itself signed a contract to provide contractor Fluor with a marine support base during the Greater Gabbard construction, including berthing, refuelling and support services for workboats.

Meanwhile the Authority continues to support this important business sector – its responsibilities as navigation and pilotage authority also being critical, as it ensures the safe and efficient movement of other traffic in the harbour and within its jurisdiction alongside work that involves transporting, unloading and loading, and installing massive turbines with blades of up to 60 metres and nacelles weighing almost 130 tonnes.

Harwich

London Array Project

WIND porT With so much activity ongoing and in the pipeline, the value of Harwich’s Bathside Bay as a potential ‘wind port’ facility cannot be overstated.

Experts agree that it could provide the biggest and best-located site on the east coast for serving wind farms in the UK, as well as those further afield in European waters – Belgium and the Netherlands are also moving ahead with major offshore wind farm development.

Hutchison Ports (UK) is seeking permission to vary the planning consent for a container terminal at the site, in order to use Bathside Bay as a major base.

Power Cable

Clove Hill

Thanet Scheme

Map showing the location of the London Array wind farm

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ACTIVITY UPDATE

Deeper, wider, higher: Felixstowe moves ahead I

n September 2011, three years of dredging, reclamation and construction work culminated in the official opening of the Port of Felixstowe’s new deepwater Berths 8&9.

This major expansion puts Harwich Haven unquestionably ahead of the rest; Felixstowe is the only UK port with the water depth and crane capacity to accommodate Maersk Line’s giant 18,000 teu Triple-E class vessels, which are due to start entering service from 2013.

The new container terminal has opened with 730 metres of quay with 16 metres depth alongside and a total terminal area of nearly 36 hectares, and is equipped with the largest operational quay cranes in the world. These 2,000 tonne giants

have a 46.5 metre lift height above the quay and have a maximum 88 tonnes lift capacity.

Crucially, they have a 24-box outreach, the longest in the world, enabling them to handle the world’s biggest containerships.

Five of the cranes have been delivered from China by ZPMC and are already operational, and two more are to be added within Phase 1 of the development. When Phase 2 is built, there will be a total of 13 cranes, all of this record-breaking size.

Harwich Haven Authority has worked closely with Hutchison Ports (UK) throughout the planning, construction and trial operations of Berths 8&9.

View of Felixstowe Berths 8 & 9 in operation

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HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Overseeing such a large construction project at the country’s busiest port has required a carefully coordinated approach; the twin priorities were to keep the Haven ports open and vessels moving efficiently, while ensuring the safety of both construction and commercial traffic within the harbour.

Piling and construction work had to be monitored and managed, and vessel movements needed to be scheduled around this. Safety zones were established around the site and enhanced traffic management systems were implemented by the Authority to ensure all harbour services continued without disruption.

At one point, when the deepwater channel was temporarily narrowed, restrictions were put in place, with the largest ships unable to pass each other at certain times.

reCoNFIgurATIoN The Felixstowe South Reconfiguration (FSR) has produced some staggering figures: • More than 750,000 cubic metres of soft silt and clay, unsuitable for building on, was removed from the seabed and replaced with an optimum blend of sand and gravel, dredged from offshore sites; • A total 3 million cubic metres of sand and gravel were required for the reclamation – enough to fill Wembley Stadium from pitch to roof three times; • Some 2.4 million cubic metres of unusable clay, rock and sand was disposed to sea from the channel realignment dredging; • The construction required 312 of the biggest piles ever driven in the UK, each 38 metres long and 2.56 metres in diameter, and weighing 47 tonnes.

• The new terminal required 19 million pieces of block paving – enough to create 70,000 garden patios.

Harwich Haven Authority’s preparedness for all of the challenges ranged from carrying

geopotes 15 dredging off the port of Felixstowe

out an extensive programme of both design, construction and operational modelling with HR Wallingford, to repositioning buoys on the realigned deepwater channel, as the new port area pushed out into the river. A major channel dredge along a 2.5 kilometre stretch involved deepening by as much as 9.5 metres to reach the required 14.5 metres depth.

Felixstowe’s expansion is the only deepwater container development in the UK that has gone ahead despite the economic downturn, and this bodes well for future traffic in the Haven.

Environmental considerations and scale economies are the two driving forces in the ever-increasing size of containerships. Experts agree that the biggest will be utilised on the Asia-Europe trades – in which Felixstowe, as the UK’s largest container port and Europe’s fifth largest, plays a major part.

Maersk has so far ordered 20 Triple-E vessels from Daewoo Shipbuilding and Marine Engineering Korea. The name reflects the design of the ships – Economy of scale, Energy efficiency and Environmentally approved.

Harwich Haven Authority has already carried out early navigational assessments of the Triple-E, demonstrating that these can indeed be accommodated.

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ACTIVITY UPDATE

MAKING THINGS HAPPEN A

major upgrade of Harwich Haven Authority’s Vessel Traffic Services (VTS) and communications systems, tied in with a major refurbishment of the Operations Room, have more than prepared the Authority to handle the anticipated increasing demands of shipping heading into and out of the Haven Ports.

The Authority has responsibility for overseeing all commercial shipping within the estuary and harbour, as well as in an area extending 12 nautical miles from the harbour entrance out to sea – adding up to a total 150 square miles of jurisdiction.

Through the VTS system, the Authority coordinates all commercial shipping movements, ensuring that port traffic moves safely and efficiently.

During 2011, more than £1.2 million has been invested in the latest state-of-the-art Atlas 9760 VTS software, as well as in associated hardware upgrades.

The VTS software is the ‘brains’ of the system and its processes, providing vessel information and also enabling the allocation of pilots to ships; also integrated into the network is the Authority’s management information system (MIS), which deals with billing, report writing and other administrative tasks.

Vessel information is fed into the VTS via two routes – electronically, through each ship’s Automatic Identification System (AIS) and by radar.

Recent years have seen a decline in ship numbers entering the harbour – but a dramatic increase in the size of ships being handled. While the 15,500 teu Emma Maersk, at 397 metres long, and Maersk’s upcoming Triple-E class 18,000 teu vessels, at 400 metres long, clearly grab the headlines, the additional trend at Felixstowe is for an increasing number of 13,500 teu, 366 metre long ships, which are being operated by most of the major container lines.

Manoeuvring these ultra large vessels requires careful and precise planning by VTS and the other key parts of the Authority’s organisation; a robust, resilient system is vital in order to carry out the Authority’s core role of maintaining safe navigation now and into the future.

Communications An upgrade of Harwich Haven Authority’s communications system, to incorporate intelligent touch-screen facilities, has prompted an Operations Room refurbishment.

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HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

HHA’s Vessel Traffic Service operations Centre following the recent upgrade

Ergonomic consultants Ham Associates were commissioned to assist in the re-design of the operations room, with advice ranging from the best chairs to the best wall colour choices for working.

Operations staff can find themselves sitting at their work stations for long periods of time and Ham was able to advise on the best chair design to keep them not only comfortable but also alert and at peak performance. Staff were consulted closely on all ideas and before the final installation Ham Associates built a lifesize cardboard mock-up of the furniture proposed, so that workflows and staff movements could be watched and the best possible layout chosen.

The 16.5 metre long Saint Christopher arrived 15 months after the Saint Brendan. The new launches have been designed to provide good sea-keeping qualities, built with a deep V-hull to cut through the waves and deal with all types of weather conditions.

Their engines meet current and proposed emissions requirements and, at 24 knots, are operating below maximum output, enabling lower fuel consumption and reduced wear on the engines.

The Authority has an option for two further pilot launches and is taking the opportunity to evaluate the performance of the first two before making a further financial commitment.

PIlOT BOAT In August 2011 Harwich Haven Authority took delivery of a second new pilot launch from Holyhead Marine.

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ACTIVITY UPDATE

Community connections H

arwich Haven Authority is proud to be an integral part of the community and, as a trust port, is committed to liaising, supporting and working with local residents, businesses and other stakeholders.

Every year the Authority is involved in numerous events and activities, many of which simply could not go ahead without its support.

Financial contributions are one obvious way of offering support, but the Authority also provides facilities, equipment, advice and expertise.

RNLI As well as supporting the RNLI Open Day, Harwich Haven Authority plays an operational part in the lifeboat service.

Our VTS act as Launching Authority; they effectively ‘scramble’ the RNLI vessel to respond to a call. In addition to providing day-to-day VTS assistance, a number of HHA’s launch crew are lifeboat volunteers.

SCHOOL LIAISON Harwich Haven Authority takes on work experience students every summer from The Harwich & Dovercourt High School. The Authority also sponsors the school’s Exchange Programme with School 14 in Belarus. In addition HHA regularly hosts visits by students from the Blackeberg University in Malmo, Sweden.

Harwich Haven Authority together with other Haven Ports and a number of other linked organisations continues to support both the Essex and Suffolk Education Authorities in delivering table-top exercises for local school students. The aim of the exercises is to develop an awareness of local job opportunities as well as skills development. The project is supported by the Haven Gateway.

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MARITIME EvEnTS The Authority supports a wide range of maritime-related activities throughout the year, including: • The Pin Mill Barge Match: an Authority launch acts as the ‘committee boat’ for this annual one-day event.

• Harwich Sea Festival: the Authority makes available its visitor pontoons and Halfpenny Pier to host this one-day event. The Halfpenny Pier, which attracts thousands of visitors every year, is maintained by Harwich Haven Authority and no charge is made to users.

• RNLI Open Day: The Authority’s pontoons and the Halfpenny Pier are also used for this event; in addition, one of its launches is made available on the pontoon, for visitors to look round.

fESTIvAlS & fIREwORkS Donations or sponsorships are provided regularly to a number of events, including: • Harwich Festival of the Arts, a two-week event held every summer.

• Charity Motorcycle Run/Harwich Family Festival, organised by the Essex Air Ambulance. Up to 5,000 motorcycle enthusiasts travel the 60 miles from Ford Dunton to Harwich, and the day finishes with a family festival on Harwich Green.

• New Year’s Eve firework display on Harwich Quay.

• St Nicholas’ Church: Harwich Haven Authority sponsors the annual Friends of Essex Churches Cycle Ride.

• The Dovercourt Choral Society’s Autumn Concert.

THE BIggER PIcTuRE

SPORT & MuSIc In the past year, Harwich Haven Authority has supported: • Harwich & Dovercourt Rugby Club, assisting with home and away games, transport and the promotion of the club’s youth programme.

• Harwich & Parkeston Under 13s football team, enabling the team to buy new training jackets.

• Harwich Royal British Legion Brass Band, supporting a recent trip to the United States with a donation.

Harwich Haven Authority is a founder member of the Port Community Fund. The fund was set up nearly four years ago by a dozen shipping and transport-related companies in Felixstowe and the surrounding area, with the idea that by pooling their fund-raising efforts, much more could be done together. Administration of the Fund is undertaken by the Suffolk Foundation.

By the end of 2010, nearly £100,000 had been granted to a wide range of good causes in the area, with organisations to benefit including the Felixstowe Seafarers Centre, East Anglian Sailing Trust, and a variety of projects for children, young people and people with disabilities.

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FINANCIAL FACTS Revenue account year ended 31 December 2010

2010

2009

£

£

20,909,573

22,343,761

(17,752,129)

(16,136,006)

Operating Surplus

3,157,444

6,207,755

Interest Receivable

169,258

329,125

Other finance income

228,000

(18,000)

(1,628,307)

(1,926,927)

Surplus on ordinary activities before taxation

1,926,395

4,591,953

Taxation

(353,364)

(1,049,298)

1,573,031

3,542,655

Operating revenue Expenditure

Interest Payable and similar charges

Retained surplus on ordinary activities after taxation

The surplus on ordinary activities before taxation of £1,926,395 (2009: £4,591,953) shown above includes £590,263 (2009: £3,017,767) relating to surcharge revenues.

Continuing operations : None of the Authority’s activities were acquired or discontinued during the above two financial years.

Balance Sheet as at 31 December 2010

2010

2009

£

£

52,153,653

52,778,058

188,685 2,185,050 9,000,000 4,157,839

174,666 3,087,902 5,000,000 6,961,472

15,531,574

15,224,040

Creditors: amounts falling due within one year

(2,795,086)

(2,631,061)

Net current assets

12,736,488

12,592,979

Total assets less current liabilities

64,890,141

65,371,037

(15,989,638)

(17,423,934)

Provisions for liabilities and charges Deferred taxation Pension Scheme liability

(256,642) (2,113,000)

(251,273) (4,071,000)

46,530,861

43,624,830

46,530,861

43,624,830

FIXED Assets Tangible assets Current Assets Stocks Debtors Short term deposits Cash and deposits

Creditors : amounts falling due after more than one year

Reserves Revenue Account

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HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

CasH Flow sTaTemenT year enDeD 31 DeCember 2010

2010

2009

£

£

5,055,841 (1,459,049) 290,471 (1,354,666)

4,290,132 (1,597,802) (875,659) (1,104,023)

2,532,597

712,648

Management of liquid resources Financing

(4,000,000) (1,336,230)

4,000,000 (3,503,836)

(Decrease)/increase in cash

(2,803,633)

1,208,812

reConCiliaTion oF oPeraTing surPlus To neT CasH inFlow From oPeraTing aCTiviTies Operating surplus Depreciation Amortisation of capital grants (Profit) / loss on disposal of fixed assets (Increase) / Decrease in stocks (Increase) / Decrease in debtors (Decrease) / Increase in creditors Difference between current service cost and cash contributions

3,157,444 2,059,686 (27,470) (80,615) (14,019) 902,852 (224,037) (718,000)

6,207,755 1,889,744 (27,470) (3,188) 4,406 (338,293) (285,822) (3,157,000)

net cash inflow from operating activities

5,055,841

4,290,132

Increase in cash in the year Cash to repay debt Cash outflow / (inflow) to / from liquid resources

2,803,633 1,336,230 4,000,000

1,208,812 3,503,836 (4,000,000)

CHange in neT DebT

2,532,597

712,648

net debt at 1 January 2010

(6,798,692)

(7,511,340)

net debt at 31 December 2010

(4,266,095)

(6,798,692)

neT CasH inFlow From oPeraTing aCTiviTies (see below) Returns on investments and servicing of finance Taxation Capital expenditure

reConCiliaTion oF neT CasH Flow inFlow To movemenT in neT DebT

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THE BOARD BOARD STRUCTURE

BOARD MEMBERS Secretary of State appointment

HHA appointment 3 Members (Non-Exec) 2 Members (Exec)

Chairman (Non-exec) 4 Members (Non-Exec)

Harwich Haven Authority Board Chairman (Non-Exec) 7 Members (Non-Exec) 2 Members (Exec)

Tim Clarke FCILT Chairman Tim Clarke has a wide and extensive knowledge of the rail industry and transport infrastructure. He has worked in both the private and public sectors in the Midlands and South East. His previous roles have included commercial director and managing director of Anglia Railways and ‘one’ railway. Tim is also Chairman of Landguard Fort Trust and Deputy Chairman of the Landguard Partnership.”

Anthony Coe CBE QPM

Board Members & attendance 2010 (total of six Board meetings held) Member

Appointing Body

Attended

2010

Tim Clarke (Chairman)

SoS

6

George Kieffer (Deputy Chairman)

SoS

6

Ivan Henderson

SoS

5

Anthony Coe

SoS

4

Robert Smith (completed term 30/06/10)

HHA

3

John Bubb

HHA

6

John Bradshaw

HHA

6

Roger Morris (Appointed 01/01/10)

SoS

6

Philip Roland (Appointed 01/01/10)

HHA

3

Stephen Bracewell

HHA

Cliff Brand (Reappointed 01/05/11)

HHA

6

6

Board Committees Audit & Finance Committee Remuneration Committee Safety & Environment Committee

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HARWICH HAVEN AUTHORITY // PERFORMANCE REPORT 2010/11

Formerly Chief Constable of the Suffolk Constabulary, Anthony has a broad community background which has included being Vice Chairman of the Broads Authority and latterly Chairman of the Environment Agency’s Anglian (Eastern) Regional Flood Defence Committee with a broad responsibility for coastal issues from Norfolk to the Thames.

George Kieffer George Kieffer is a company director and has worked internationally in the aerospace and defence industries after a career as a banker in the City of London. He is Chairman of the Haven Gateway Partnership, a private public sector partnership covering the Haven Ports, Interim Chairman of the South East Local Enterprise Partnership (East Sussex-Essex-Kent-Medway-SouthendThurrock) and Vice-Chair of the Swan Social Enterprise Group. He serves on the Enterprise Board of the University of Essex and is director of a number of companies.

George is a Governor of the RNLI.

Roger Morris Roger has an extensive background in environmental science and its practical application. He has worked for the Nature Conservancy Council, Joint Nature Conservation Committee and English Nature before the establishment of Natural England, for whom he worked for three years before electing to establish an independent coastal management consultancy. He was responsible for developing English Nature’s ports policy. This experience has given him a good understanding of the drivers that underpin the growth and change in the UK ports industry.

Roger has developed a strong grounding in coastal geomorphology and the implications of port-related dredging for coastal evolution.

co-author of the British Standard 6349 part 5 Code of Practice for Dredging and Land Reclamation and of the Institution of Civil Engineers’ Design and Practice Guide for Dredging.

Captain John M Bubb FNI John Bubb has extensive experience in the maritime sector especially with respect to the management and development of harbours. A former senior manager for Hutchison Ports (UK) Ltd., he has also held various positions within the maritime industry as Inspector of Lifeboats with RNLI, has pilotage experience and spent his seagoing career with Cunard Line. He is a Younger Brother of Trinity House, Fellow of the Nautical Institute, educated at the Thames Nautical Training College, HMS Worcester and is a recreational yachtsman.

Phil Roland

Ivan Henderson

Phil has been involved with the maritime and ports sector for 40 years. He has a comprehensive knowledge of ports primarily gained from his involvement in maintenance and capital dredging, and associated port developments. He recently stepped down from his role as Managing Director of Westminster Dredging Ltd., a position he held since 1994. Phil has served as Chairman of the Central Dredging Association, of which he was a founder member and of the dredging trade organisation, the UK Federation of Dredging Contractors; he has also served as Secretary General of the International Association of Dredging Companies. He has been a visiting lecturer at several European universities and at Hydraulics Research Ltd., Wallingford. Phil is also

Ivan has worked in the transport sector for over 30 years, originally starting out as a dock worker in Harwich, served for a period as Executive Officer for the RMT and more recently as a consultant specialising in ports and maritime policy. Ivan was the Member of Parliament for Harwich from 1997 until 2005 and was elected a District and Town Councillor in May 2011.

Captain Cliff Brand FNI Harbour Master & Marine Manager Cliff joined HHA in April 2008 from Gibraltar Port Authority, where he was Chief Executive and Harbour Master. He has wide experience gained as Master in command, fleet management, flag state administration, and more latterly, in accident investigation with the UK’s MAIB. Cliff is a fellow of the Nautical Institute and a Younger Brother of Trinity House.

Stephen Bracewell Chief Executive Stephen has wide experience of the maritime sector and related industries and brings a high level of experience of ship/shipping operations, port and terminal operations, general management, commercial, offshore oil and gas development together with extensive knowledge of the container logistics business. Stephen is a Council member and former Chairman of the British Ports Association and has recently stepped down as Chairman of Port Skills and Safety. He is currently Vice Chair of the Haven Gateway Partnership, a sub-regional economic partnership within the East of England Region.

John Bradshaw John has worked in the shipping and transport industry for over 30 years in both ferry short sea trades and deep sea shipping and has extensive experience in the marine and transport sector. Until recently he was Group Managing Director of P&O Ferrymasters. John now runs his own transport consultancy company.

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CHAIRMAN 1970 1975 1980 1988 1999 2008

J V Bolton Lord Walston CVO R Perkins OBE Sir Colin Walker OBE P J Bennett OBE T Clarke

CHIEF EXECUTIVE 1985 1991 1997 2004

V A Sutton MBE J C Jenkinson MVO N R Pryke S J Bracewell

HARBOUR MASTER 1970 1971 1985 1988 1992 2000 2008

Capt J D Gibson Capt V A Sutton MBE Capt I T Whale Capt R W Shaw Capt I T Whale Capt D I Shennan Capt C Brand

Harwich Haven Authority Harbour House, The Quay, Harwich, Essex CO12 3HH Tel: 01255 243030 • Fax: 01255 241302 • Email: harbour.house@hha.co.uk www.hha.co.uk