In 2016, volumes grew to 34.9m tonnes, an increase of 6.3% on the previous year. Compound growth over the last four years stands at 24.7% and total throughput volumes are now four million tonnes (12.9%) higher than they were in 2007 before the economic downturn.

Growth was strong on both the import and export sides reflecting the generally positive performance of the economy during the year.

Our business is increasingly dominated by the unitised modes which together account for 82.5%. A decade ago, they represented 76.9% of total gross tonnage.

The major part of our growth in 2016 (80%) came in the larger unitised modes which grew by 6.1%.

However, the smaller non-unitised modes had a higher rate of growth at 7.6%.

Ro-Ro units for the year increased by 7.6% to 944,531 while Lo-Lo TEU grew by 8.1% to 663,732. Dublin is both Ireland’s largest and fastest growing Port for unitised cargo and our share of all Ireland total volumes increased to 50.0% (2015: 49.3%) in the case of Ro-Ro and to 56.6% (2015: 54.9%) for Lo-Lo.

As another indicator of the improving domestic economy, Trade Vehicle volumes grew by 2.0% to 104,185 units following a very strong year of growth in 2015 when volumes were up 25.8%.

Within the Bulk sector, Bulk Liquid (which is virtually all petroleum products) increased by 4.1% while Bulk solid increased by 15.3% driven in the main by increases in both the import and export of cement products.

The tourism side of our business showed modest growth with ferry passengers up 0.9% at 1.8m and tourist vehicles ahead 1.0% at 0.5m.

Cruise tourism grew strongly in 2016 with 109 cruise calls during the year representing a 17.2% increase on the previous year.

Dublin Port Company is an infrastructure provider with relatively little involvement in operational activities. As such, we have high operating leverage and expect to see volume increases directly driving revenue and profit levels.

During 2016, our 6.3% volume increase drove our revenues up by 5.1% from €77.7m to €81.6m. The revenue growth in 2016 was particularly strong considering the Company’s participation in the profits of the East Link Toll scheme ceased at the end of 2015. Excluding East Link the underlying growth in revenue in 2016 was 7%.

Total operating costs amounted to €36.6m in both years. Within this figure depreciation costs increased by €1.4m from €7.2m in 2015 to €8.6m in 2016 reflecting the higher fixed asset base as a result of the Company’s on-going capital investment programme. The higher depreciation charge was offset by a €1.9m reduction in the pension funding charge as a result of a past service credit arising in 2016 following the application of the impact of the pension levy to active members of the fund.

Other operating income arises in 2016 in the amount of €519,000. €350,000 relates to an increase in the valuation of the Company’s investment property “P5” located in the Eastpoint Business Park. Profit on disposal of assets in 2016 amounts to €169,000 and relates to the disposal of miscellaneous plant and equipment.

The comparative figure in respect of other operating income in 2015 amounted to €1.8m (€800,000 in respect of an increase in the valuation of investment property P5 and €1m in respect of grant funding received from the E.U. in respect of studies related to the Alexandra Basin Redevelopment Project).

As a result of the foregoing the Company’s operating profit increased by €2.6m (6.1%) from €42.9m in 2015 to €45.6m in 2016.

As an infrastructure provider with large imminent capital expenditure requirements, cash generation, Return on Capital Employed and net debt are key measures of our business strength.

During 2016, Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8.8% to €53.6m as shown below.

Beyond this, our Return on Capital Employed (ROCE) decreased from 14.4% in 2015 to 13.9% in 2016. This reflects the higher level of Capital Expenditure amounting to €44.2m in 2016 compared to €17m in 2015.

Since corporatisation in 1997, our average annual capital expenditure has been €20m per annum and was significantly less than this over the five year period from 2010 to 2014 when the average spend was €10m per annum. The level of capital expenditure over the last two years has increased significantly as we progress our multi-annual investment programme under our Masterplan 2012 to 2040.

The Company’s cash position remains strong with net cash at year end amounting to €3.0m following a year of significant capital investment amounting to €58.3m.

The Company has a €100m EIB long-term debt facility available which, combined with short term debt facilities of €50m (of which €35m is currently drawn), ensures that we are in a strong position to implement the continuing programme of essential capital investment in 2017 and beyond. In March 2017, the Company put in place a new borrowing facility to replace the existing €50m debt facility.

During 2016, we secured further consents required to progress with the ABR Project and work on the project has begun.

In addition, we continued to redevelop lands in the Port to provide additional areas for the transit storage of our fast growing Ro-Ro and Lo-Lo businesses.

Beyond this, we purchased sites totalling 44 hectares 14km from the Port to facilitate the future development of Dublin Inland Port to cater for the requirements of port-related but non-core activities which we plan to displace from Dublin Port so as to maximise the use of port lands for the transit storage of cargo.

Finally, in December, The Board approved a €600m ten year capital programme which incorporates the ABR Project and the development of Dublin Inland Port.

Against the background of growth of 25% in the four years to 2016, we will carry out a review of our Masterplan during 2017. This review will consider the appropriate planning growth assumption for the future together with identification of infrastructure development options which can cater for this growth.

Among these options is the development of a number of projects on the Poolbeg Peninsula including within the area of the Poolbeg West Strategic Development Zone, established by Government during 2016.

Following the UK Brexit vote last year, we will have to plan the development of the Port to cater for the possible introduction of border controls by a variety of State agencies, including Customs.