Dover takes first steps to privatisation

Europe’s busiest ferry port, Dover, has taken a step closer to privatisation by submitting an application to the secretary of state for transport to restructure the organisation.

Dover Harbour Board (DHB) said that by restructuring, it would be able to introduce private capital and would therefore, move fully into the private sector, meaning it would no longer be a trust port.

DHB said the move would ensure “that the necessary capital is secured for investment in the port to deliver new capacity as and when it is required”.

This would guarantee the port’s ability to “meet the needs of its customers over the long term and securing the position of the Port of Dover as a key international gateway in the light of forecast growth in ro-ro traffic volumes”.

DHB is currently trying to fund the development of a new £400m (US$648m) terminal, which it said it would need to meet future traffic growth.

DHB CEO Bob Goldfield told IFW the government had refused to let DHB borrow the funds it needed to secure the development, and this was one of the reasons for privatisation.

DHB chairman Roger Mountford said: “The port needs access to private capital and to benefit from new opportunities.

“At the same time, the board wants to respect the special status of a trust port in bringing forward plans that will ensure that the local community, of which the port forms a part, will share in the port’s continuing development and success.”

Goldfield said he expected the application to be processed by early summer and hoped the sale process would be completed in 12-14 months from now.

He also moved to allay fears about job losses and the effects privatisation would have on the local community, explaining that the application required the business to be centred in Dover and that a community trust would be established.

He said there may be some job losses if the new owner, or owners, sought efficiencies, but in the long term, the move would create jobs because it would make it easier for the port to develop.

Increases in the rates ferry operators would pay would be governed by how much they required the port to be developed, he added.

See Monday’s new-look ifw-net.com for the full Bob Goldfield interview.