Memorandum submitted by the Isle of Anglesey County Council (P17)

Executive Summary

Anglesey faces serious economic challenges, and local deprivation is concentrated around its port areas. Holyhead port is a critical generator of jobs and income for the local economy. Government should support projects which will safeguard this, and more effectively exploit and develop the port's potential and contribution to the local economy. Key projects in this respect include the proposed cruise ship terminal, the planned direct road link between the port and A55, and the need for a lorry park facility. The extensive harbour has many uses with scope for more, and the waterfront area is subject to ambitious development plans.

1.0 Introduction

1.1 Anglesey County Council welcomes the Welsh Affairs Committee's decision to hold an inquiry into the issue of Ports in Wales. Anglesey has a number of ports and harbours located around our coastline, but most of our evidence inevitably relates to the port of Holyhead due to its size and status.

2.0 Economic Context

2.1 Anglesey faces a number of significant economic challenges, and now has the highest unemployment rate of any county in North Wales. The Island has seen the erosion of its industrial base in recent years. This will be added to by the closure of Eaton Electrical in late 2009, and a decision on the future of Anglesey Aluminium is expected shortly, both in Holyhead.

2.2 There is generally a correlation between economic prosperity and proximity to the mainland. The Island's socio-economic problems are particularly severe in the wards surrounding the port of Holyhead, and also that of Amlwch Port. Of the ten LSOA's on Anglesey with the highest unemployment rates, seven are in Holyhead, and one is in Amlwch Port. These areas account for five of Anglesey's six Communities First wards.

2.3 It is important that government encourages and supports plans to more effectively develop the economic potential of ports, especially in areas of high socio-economic need such as Anglesey.

3.0 Ports and Harbours of Anglesey

3.1 Holyhead

Holyhead is a major strategic port of great importance as a link between the UK and Irish Republic, and it is dealt with in detail in the remainder of this report

3.2 Amlwch

The narrow harbour of Amlwch was originally developed to serve the copper industry. During the late 1970's it was improved to serve the needs of oil importation from tankers, for transfer to the nearby Rhosgoch tank farm, and from there via pipeline to Stanlow in Cheshire, but this operation was shortlived. The nearby Great Lakes (previously Octel) bromine works was the town's major employer - it has now closed, but there are plans by gas company Canatxx to use it to land and refine Irish Sea gas. The main users of Amlwch harbour today are private leisure craft, boat excursion operators, and commercial fishing boats. The harbour also provides a base for pilot vessels of the Mersey Docks and Harbour Company, assisting large ships travelling to Liverpool. There are plans to develop the historic harbour area as a tourist destination. Anglesey County Council is the local harbour authority.

3.2 Beaumaris

Although historically a port, Beaumaris now lacks a sheltered harbour. Current facilities include a leisure pier, moorings, and a boatyard, which are used by private leisure craft and by tourist or fishing boat excursion operators. A proposal for a new marina has recently been thwarted due to opposition by mussel fishermen and related agencies, and the decision has thrown in doubt the legality of some 400 Menai Straits moorings.

3.5 Menai Bridge

The modern pontoon pier is used by research vessels of the nearby University of Wales Marine Science department, and by some leisure and small commercial craft. As in Beamaris, the pier and moorings are owned and managed by the County Council.

3.3 Cemaes

There is a small sheltered harbour in Cemaes which was built to serve the needs of local past industry. It is now used by leisure craft and a small number of fishing boats and charter boat operators. The harbour is owned and managed by local trustees.

3.5 Other Harbours

There are various small-scale jetties, slipways, and other maritime facilities around the Anglesey coast, mostly related to leisure craft usage.

4. Holyhead Port

4.1 Holyhead's Harbours

Holyhead's use as a harbour dates back to Roman times. Its development as a major port was linked to the building of the A5, the extension of the railway from Chester, and the Admiralty's decision to create a large harbour of refuge. Holyhead's role as a strategic transport node has been reinforced by the building of the A55 dual carriageway from Chester, part of a designated Euroroute (E22). Recent port infrastructure developments have been focussed on the East Dock side of the Inner Harbour, and on Salt Island from where deeper water can be reached.

4.2 Port Employment

Holyhead Port is one of Anglesey's major employers, providing approximately 900 jobs. Stena accounts for well over half of these, with the remainder being in Irish Ferries, port service companies, transport and other businesses, together with some public sector staff in the port police and customs. Stena has sited some of its UK-wide service and support operations locally. Given other job losses, it is essential that government supports port employment.

4.3 Ferry Services

Holyhead is the busiest ferry port in Wales, handling about 2.3 million passenger movements each year. There are two ferry companies operating a total of five ferry vessels, and both have invested heavily in developing new berths and port related facilities. The ferries carry foot passengers, cars, coaches, and lorries, varying by vessel. Foot passenger numbers has declined in recent years, but the number of lorries using the ferries has increased very significantly.

4.4 Sea Freight

The bulk of sea freight activity via Holyhead involves lorries using the ferries to transport goods to and from Ireland. (There used to be a sea container facility on the East Dock, but the company withdrew and the site was later redeveloped for ferry uses). Other significant freight operations involve the import of fuel to the port and of aluminium ore to Anglesey Aluminium, and the export of aluminium ingots. The ore is landed on a purpose-built jetty , and is transported via underground conveyer to the smelter (the possibility of also using this to import wood chip for a power station is now being considered). There are other occasional freight uses eg the export of stone for marine works. It is hoped that storage and distribution facilities and related jobs can be attracted to the new Parc Cybi business park.

4.5 Port - A55 Link

4.5.1 The growth in ferry traffic, especially lorry numbers, has led to stresses on the transport network. Problems occur at the Britannia Bridge, and in some other locations along the North Wales coast. A particular problem for Holyhead is the "missing link" between the port and the A55 dual carriageway. The access to and from the port for road traffic needs to be improved to avoid conflict with local traffic, and to reduce congestion, especially for traffic exiting the port.

4.5.2 A scheme has been prepared to address this by creating new direct road link between the port and A55 Junction 1. This will require the relocation of the existing railway depot from near the town centre, and it is proposed to relocate this to land adjacent to Anglesey Aluminium. With support and funding from WAG, Anglesey County Council have been working for several years to plan and design up this project, which now has a cost of about £20M. A bid for EU Convergence funding has been made, and it is vital that funding is provided to allow the scheme to proceed.

4.6 Lorry Park

Due to the volume of freight traffic using the A55, there is a need for a suitable truck stop/ service area for lorries. Drivers are now forced to use normal roadside

lay-buy's to stop and rest to achieve their mandatory breaks, which has resulted in environmental and other problems in those locations as there are no facilities.

A lorry park would address this problem and could generate local economic benefits.

4.7 Environmental Impact

There are inevitably some localized environmental impacts due to port operations and traffic. The London Road ward has the worst scoring on Anglesey in terms of the WIMD 2008 health indicator. It is expected that pollution levels in local residential areas will be reduced if the rail depot is relocated, and if lorries can access the A55 directly without having to queue slowly over Black Bridge.

4.8 Port and Rail

About 0.5m people use Holyhead station each year, most being ferry users.

Ferry and train times are reasonably well timed, but the locality benefits from

some delay. The Town Council operates a left luggage facility to encourage ferry / rail users to visit the town rather than wait in the terminal. The railway station has seen some limited improvement works, but is clearly in need of a significant physical upgrade, including updated signage and information for passengers.

4.9 Rail Freight

There are currently no rail freight facilities at the port of Holyhead. The North Wales Rail Strategy Study includes the option of a rail freight terminal at Holyhead, which should reduce the large number of heavy lorries that now operate along the A55. The North Wales railway line is not currently used by container traffic, and there are gauging and terminal issues to overcome. A rail gauge upgrade is a possible long-term option.

4.10 Cruise Ships

4.10.1 About 5-10 cruise ships have been calling into Holyhead each year, most carrying a few hundred passengers, but there have been several calls by larger ships with around 2,000 passengers. Most cruise passengers tend to go on day or half-day coach excursions, and the cruise ship companies receive much of their income from these.

4.10.2 Typically 25% of passengers from large ships will not go on coach excursions and will walk around the town or visit other places by taxi. Many crew members will also come ashore and spend in local shops. The County Council has arranged events in the town centre on large cruise ship call days. Related initiatives have included customer care courses for taxi drivers, training local "green badge" tourist guides, and arranging short local excursions.

4.10.3 The Cruise Wales partnership aims to develop Wales' potential as a cruise destination. Economic studies have been undertaken to measure the economic impact of cruise calls and predict how this is likely to increase in the future. Anglesey County Council is an active member, and will lead the EU Interreg funded "Celtic Wave" joint marketing project for several Irish Sea cruise ports.

4.10.4 Smaller cruise ships berth alongside in the Inner Harbour, but larger cruise ships must anchor outside the port and transport their passengers ashore via small tenders. This is very time consuming and risky. Several large cruise ships have cancelled the landing of passengers using tenders due to conditions on the day being unsuitable. Most cruise lines have now decided to avoid tendering in. The development of an alongside cruise berth is therefore essential to ensure that Holyhead attracts cruise ships in the future, and we are most anxious that this project receives full government support.

4.11 Marine Leisure

The 24-hour outer harbour is well used for marine leisure activities, and there is space and potential for further usage. The local sailing club has a large membership and manages yacht moorings. A private yachting marina has been established which now has a blue flag and about 200 berths, together with an onshore development of commercial units and apartments.

4.12 Tourism

The port makes a significant contribution to tourism in Wales and Ireland. Efforts have been made to increase the level of ferry passenger spend on Anglesey by providing visitor information on the HSS ferry, in A55 lay-bys, and at the ferry terminal, and further marketing initiatives are planned. Holyhead benefits from spends by tourists who are en-route to or from Ireland, and local guest houses rely on ferry users for much of their business. A budget hotel has recently been built, and there is further hotel interest.

4.13 Local Spend by Ferry Users

Ferry users generate a significant level of spend in Anglesey service sector businesses

in Holyhead town centre, Holyhead retail park, and other places along or near the A55.

The relocation of the port access from the west to the east side of the harbour during the

early 1990's adversely impacted on spend in the town centre, and the planned new port access road link scheme on the west side should see many more car and coach-based ferry users stopping and spending in the town.

4.14 Ferry Timings

Ferry frequencies and timings have a significant impact on how many ferry passengers visit the town and how much they spend. Timings are currently not as favourable as they used to be for return day trips between Wales and Ireland. Ferry delays or cancellations can result in a significant influx of passengers into the town.

4.15 Port Heritage

The port includes a large number of historic buildings and structures, many of which are listed as being of historic interest, and a study has been undertaken in conjunction with Cadw. The care of these buildings and structures largely fall on Stena Ports Ltd as port authority. An excellent Maritime Museum is operated by local volunteers in a building leased from Stena, and there are plans for a large expansion to show more of the many artefacts.

4.16 Other Port & Harbour Users

There are very many other users of the port and harbour. These include the RNLI,

RAF, Customs, Navy, visiting ships, survey vessels, Sea Scouts, small boating associations, leisure divers, outdoor pursuits operators, among others.

4.17 Holyhead Breakwater

The 1.5 mile long breakwater is a dramatic historic structure which forms the large

Outer Harbour, dating back to the early 1800's. The structure is now in need of a

major strengthening and restoration scheme. Without these works, the breakwater is in

danger of partial collapse. It is hoped that the scheme will also provide for leisure

and amenity use of the structure.

4.18 Port & Regeneration

Recent urban regeneration works by the County Council have targeted run-down areas facing the port, and further works are planned. These schemes will integrate with the planned Port Access Road scheme. The recently built Celtic Gateway bridge provides an easy and DDA compliant link between the town centre and foot passenger ferry terminal/ railway station, and is also well used by Morawelon area residents. Stena is an active partner in the local regeneration partnership and related initiatives.

4.19 Waterfront Potential

Holyhead's extensive waterfront has been recognised as a key asset for the

future regeneration of the town. Port owner Stena has formed a joint venture property development company with London based developers Conygar, and plans for an ambitious mixed-use development for part of the Outer Harbour waterfront are in preparation.

4.20 Offshore Developments

Holyhead is well sited to be a base for servicing offshore developments, and large drilling

rigs are sometimes seen in the harbour. Further windfarms are expected in the Irish Sea, together with marine turbines. There are currently constraints in terms of uses that would require very large areas of portside standage.

4.21 Marine Industry

The closure of the Marine Yard in the 1980's was a severe blow, but its tradition continues on a smaller scale. Holyhead Boatyard employs about 60, involved in specialist boatbuilding and repairs, but also in many shipping and overseas activities. There are also many other smaller marine businesses in and around the harbour, and this sector clearly deserves to be encouaged and assisted to grow.

4.22 Fishing Industry

Holyhead is North Wales' most important commercial fishing port. It is a base for small inshore vessels, but also sees calls by larger trawlers. Almost all fish landings (c£3m per annum by value) are transported direct for sale outside Wales. The DEFRA Fisheries office for North/Mid Wales and the North Wales Fishermen's Association are both based in Holyhead. There are several facilities for fishing boats, including a Council managed Fish Dock, and EU fisheries funding is available for related works.

4.23 Port Authority

The statutory port authority is Stena Ports Ltd, a port management company which is part of the international Stena group. Although a private company, the functions of Stena Ports Ltd reflect those of a public sector authority in many respects. The port authority's status as a privately owned company has constrained the availability of public funding to some important projects due to funders concerns and uncertainty about EU state aid regulations.

June 2009