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Press Release:


31^st January 2007

North Atlantic Trade and Transport Study launched in Belfast 31^st January 2007

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Lack of Direct Sailings from Ireland to North America Leads to Loss of Competitive Advantage for Irish Exporters North and South, according to a new All Ireland study.

Lack of Direct Sailings from Ireland to North America Leads to Loss of Competitive Advantage for Irish Exporters North and South, according to a new All Ireland study.

· The study points to the need for major ports investment.

· No Irish port able to handle Trans-Atlantic ships.

· Irish Exporters Association, call for the new NDP to be revisited, to allocate the necessary funding for port expansion to handle larger ships .

Goods from Ireland, the closest European land to North America, must first go east to either British or Continental ports, because of the lack of direct sailings from Ireland. This is putting exporters from the Republic of Ireland and Northern Ireland at a competitive disadvantage according to Mr Joe Lynch, President of the Irish Exporters Association. Mr Lynch was speaking in Belfast today (31.1.07) at the launch of the North Atlantic Trade and Transport Study which was commissioned by the Institute of International Trade of Ireland.

According to Mr Lynch, “the study concludes that a minimum ‘guaranteed’ cargo, necessary to secure a direct call to Ireland by ship, already exists. This fact, however, is not sufficient to secure a direct call because none of the Irish ports have the necessary draft and quay facilities to accommodate trans-atlantic ships,”

The North American market is of critical importance for manufacturing exporters in Northern Ireland and in the Republic. Mr Lynch said that North America accounts for 19% of the total value of merchandise exports and 13% of imports in the Republic. For Northern Ireland the percentages are remarkable similar with North America accounting for 20% by value of merchandise exports and 14% of imports. That makes North America the largest market outside the European Union for Ireland as a whole, with trade last year of 35Billion euros and one with a high growth potential.

The current system utilising feeder shipping lines primarily via Continental ports does not meet the needs of Irish exporters and importers. Trans-shipment time via Rotterdam is now taking 17 days on average , double that of 5 years ago.

“The longer transit time and additional costs associated, place Irish manufacturing firms at a competitive disadvantage vis-à-vis their competitors in Europe and the UK, who can avail of direct shipping services,” said Mr Lynch.

“The situation is expected to rapidly deteriorate , as ship sizes generally are
increasing past the capacity of Irish ports.’’, he stated.

“Under these circumstances it is quite unbelievable that the new National
Development Plan , the most extensive national plan in the history of the state,
failed to allocate any Exchequer funds for Port development”.

The 480 million nominally shown in the Plan , is stated to come from:

Ø raising port dues levied on exporters and importers

Ø selling off port assets

Ø joint – venturing with the private sector

For an island nation depending on it’s seaports for 90% of its trade, this is a remarkable omission. It is and even more remarkable omission in the context of a Plan which sets out to support economic growth and sustainable development over the decades ahead, and which it states can only be implemented if the economy generates the necessary resources.

Mr Lynch further stated;

‘This is not spending for spendings sake. It is expenditure which the ports generally have not the wherewithall to make from their own resources, but is vital if we are to secure the gains made by exporters and equip our ports to face the challenges ahead and in particular underpin the future competitiveness of our manufacturing export sector.’

Sir George Quigley, Chairman of Bombardier launching the “North Atlantic Trade & Transport Study” said

“Successful exporters and their host locations do not win their spurs easily. Competitiveness- in all its multifaceted dimensions- is key. And one of those dimensions is the efficiency with which exporters can connect with their customers. Exporters on this island ought to be highly competitive on this score so far as their North American customers are concerned. Being on Europe’s outer periphery and closer to North America, we should have the edge over the rest of Europe. But we are not able to capitalise on our geographical advantage because there are no direct Lift on Lift off or Roll on or Roll off shipping services from the Island to North America. Everything has to be transhipped through a port in Great Britain or on the continent.”

“I am delighted that the report published today identifies how that position might be rectified as far as Roll on Roll off freight is concerned. That would be particularly useful for Northern Ireland, where much of the island’s Roll on Roll of freight id generated.

“The Solution for Lift on Lift off fright may be more difficult but, here again, the Report provides very helpful pointers towards ways in which some of the difficulties associated with current transhipment arrangements can be mitigated”

“Even if it had done nothing else, this study would have performed a key service by drawing attention to the crucial significance of port development. There is little point in fine tuning out internal infrastructure on the island and neglecting the gateways which are simply indispensable for what must become our increasingly deeper integration into the global economy”

Mr Lynch concluded by saying that this study represents cross-border cooperation at its best.

“A look at the sponsors of the study confirms that no matter what part of this island you call home that international trade is important,” he said. The sponsors and steering committee of the study were Bombardier Aerospace, Dublin Port Company, Forfás, Inter-Trade Ireland, Invest Northern Ireland, Port of Belfast, Port of Waterford, Waterford Crystal, PepisCo and Diageo.

(Other quotes from any other partner in the study)

ENDS

For further information contact: Mr John Whelan
Chief Executive
Irish Exporters Association
Tel: 01-6612182
Fax: 01-6612315