The Container and Terminal Division

Eucon Geographical Coverage

Eucon Routes

Dublin Ferryport Terminals

Dublin Ferryport Inland Depot

Belfast Container Terminal

Ports Served by Container Ships: Belfast, Dublin, Cork, Antwerp, Rotterdam

The Container and Terminal division provides direct container shipping services between Ireland and continental Europe together with the operation of container terminals at both Dublin and Belfast.

The division’s intermodal shipping line Eucon is the market leader in the sector, operating a core fleet of six chartered container vessels ranging in size from 750 – 1,000 teu capacity, connecting the Irish ports of Dublin, Cork and Belfast with the continental ports of Rotterdam and Antwerp. Eucon is offering feeder services to the Deep Sea Lines and a full intermodal service where Eucon deploys 4,500 owned and leased containers (equivalent to 8,100 teu) of varying types thereby offering a full range of services from palletised, project and temperature controlled cargo to Irish and European importers and exporters from all points on the island of Ireland to destinations across 20 European countries. Door to door services are contracted to third parties utilising a variety of transport modes including road, rail and barge.

Dublin Ferryport Terminals (DFT) operates its Dublin Port container facility from a leasehold facility with remaining lease terms of between 74 and 100 years, covering over 34 acres. The facilities comprise 480 metres of berths for container ships, with a depth of nine to eleven metres and is equipped with three modern Liebherr gantry cranes (40 tonne capacity) and ten rubber-tyred gantries (40 tonne capacity) on a strategically located site within three kilometres of Dublin city centre and within one kilometre of the Dublin Port Tunnel, providing direct access to Ireland’s motorway network. DFT now operates four electrically operated rubber-tyred gantries incorporating latest technologies to allow for remote operation. Following the successful deployment of these environmentally friendly electric RTGs, DFT placed an order for an additional five of these cranes which will be delivered and commissioned in the second half of 2022. The delivery of these cranes and the relocation of our empty depot facility in January 2022 to our new Dublin Ferryport Inland Depot located at the new Dublin Inland Port will increase the capacity of DFT to meet the needs of the market.

Belfast Container Terminal (BCT) operates the sole container terminal at Belfast under a services concession agreement with Belfast Harbour Commissioners (BHC) at a 27 acre site in Belfast Harbour. This services concession agreement currently extends to 2026. BHC are currently completing a £40 million re-investment project which includes extensive civil works and the delivery of two new Liebherr gantry cranes and eight new electrically operated RTGs incorporating the latest technologies to allow for remote operation similar to the RTGs operated at DFT. Civil works have commenced on the building of two new RTG stacks which we expect to be completed by the end of 2022 alongside the commissioning of the final three RTGs. The final two rail mounted gantry cranes will be phased out of operation during 2022.

2021 Overall Container and Terminal Performance

Revenue

€174.0m

2020: €146.5m

+18.8%
EBITDA

€29.1m

2020: €19.8m

+47.0%
EBIT

€17.2m

2020: €13.1m

+31.3%
ROACE

25.5%

2020: 21.0%

+4.5pts

Revenue in the division increased to €174.0 million (2020: €146.5 million). The revenue is derived from container handling and related ancillary revenues at our terminals and in Eucon from a mix of domestic door-to-door, quay-to-quay and feeder services with 72% (2020: 70%) of shipping revenue generated from imports into Ireland. With a flexible chartered fleet and slot charter arrangements, Eucon was able to adjust capacity and thereby continue to meet the requirements of customers in a cost effective and efficient manner.

EBITDA in the division increased by 47.0% to €29.1 million (2020: €19.8 million) while EBIT grew 31.3% to €17.2 million (2020: €13.1 million).

In Eucon, overall container volumes shipped were up 9.6% compared with the previous year at 346,600 teu (2020: 316,300 teu). There was a strong recovery on volumes for all trade lanes in 2021 as supply chains adjusted to the new Covid-19 operating environment. To facilitate this increased demand we chartered a sixth vessel into the fleet in January 2021. The revenue gains were offset by strong increases in the cost base more particularly ship charter costs and fuel costs which we recovered from our customers by increasing rates and the continued application of the flexible bunker and fuel surcharges.

Containers handled at the Group’s terminals in Dublin Ferryport Terminals (DFT) and Belfast Container Terminal (BCT) were up 14.7% at 335,500 lifts (2020: 292,400 lifts). DFT’s volumes were up 15%, while BCT’s lifts were up 14%. We have seen a strong increase in volumes across the entire customer base and the resultant increased revenues were partially offset by increased energy and labour costs.

Outlook

In Eucon, we see a continued strong demand for capacity in 2022 which has strongly increase ships charter costs that will be passed onto customers by increasing rates. We look forward to continuing the growth trend in EBIT which is testament to our investment in the business in driving efficiencies and nurturing close customer relationships. The transition from diesel powered rubber-tyred gantries at our Dublin terminal will continue in 2022 with the delivery of five additional electric rubber-tyred gantries capable of remote operation. These new environmentally friendly machines will continue to deliver operational efficiency and a safe working environment as we continue the expansion of our capacity. The opening of Dublin Ferryport Inland Depot at the Dublin Inland Port has provided the opportunity to expand our empty depot business while at the same time increase the capacity at Dublin Ferryport Terminal. At our Belfast Container Terminal facility in Belfast, we look forward to continuing to work on the completion of the £40m re-investment project with Belfast Harbour and assisting in the delivery of additional terminal capacity to the market.