Major Port Infrastructure Grants Approved for Great Yarmouth

The plan for the construction of EastPort, the proposed harbour for Great Yarmouth, took a critical step forward on Friday 28 January 2005, with the announcement that the Central Government had authorised a multi-million pound grant package for the development.
The news came in a letter to Great Yarmouth MP, Tony Wright confirming that the go-ahead had been given by the Department for Transport and the Department for Trade and Industry.
The grants are to come from regeneration funding by EEDA, Norfolk County Council, Great Yarmouth Borough Council and European Union Structural Funds.
Richard Jewson, chairman of East Port Great Yarmouth Ltd. said: “This is the decision we have been waiting for. Confirmation of grant support was vital to make the project attractive as a commercial investment.
“We have already had discussions with a number of interested parties, both potential users and commercial investors, and we will now be able to take these discussions forward. We aim to see the project under construction by the end of 2006.”

The £40m harbour development is linked with plans to operate a three-times daily ferry service to Amsterdam (IJmuiden), carrying freight and passengers. The harbour will also meet a regional need for deep water berths to extend the port’s role in offshore energy and general cargo handling.
The business plan for the development envisages a long-term concession to a port operator, who will take over the existing port and the outer harbour as a combined operation.
The Harbour Revision Order authorising the development is now unopposed and awaiting a decision by the Department for Transport. Once the Order has been approved, EastPort intend to advertise the opportunity formally.
Commenting on the decision, EastPort’s executive director, Peter Hardy, said: "The project has been through an intense three-year scrutiny by EEDA and Central Government. UK policy on grant aid for port developments is highly selective and in order to secure this decision we had to demonstrate not only the economic need also the market demand clear commercial potential. The project will improve international transport links into the midlands while having a major local impact on an area suffering from severe unemployment".

East Port Great Yarmouth Ltd. ("EastPort") was established in 2000 by Great Yarmouth Port Authority, Norfolk County Council and Great Yarmouth Borough Council, with the purpose of promoting a commercial outer harbour development, backed by public sector grant funding.
The proposed outer harbour comprises:
• External breakwaters
• Dredging to accommodate vessels of 8.5 - 9.5m draft
• 11 hectares of land reclamation
• One fully equipped ro/ro berth and linkspan
• Approximately 350m of general purpose quays

The design also allows future expansion for a second ferry terminal, potentially with rail access.
Most of the statutory powers to construct an outer harbour are already in place. A Harbour Revision Order ("HRO") has been submitted, seeking renewal the planning permission for the development and certain other powers. With the approval of the grant funding now secured, the Secretary of State's decision is hoped for in the near future.
The Board of Great Yarmouth Port Authority has authorised EastPort to explore all options for financing and implementing the project. Once the HRO has been made, it is likely that EastPort will seek private finance from the development by offering a long term concession, which will incorporate both the existing harbour operations and the outer harbour itself.
Freight traffic demand across the North Sea to the Netherlands is currently growing by around 4.5% compound per annum. The recent enlargement of the European Union is pointing to further growth in this traffic. As the closest ro/ro port to the Netherlands, Great Yarmouth will offer shorter transit times for international hauliers.
Following a competitive tender, Athens-based Superfast Ferries were selected as preferred operator for a three-times daily, five-hour freight and passenger service to the Netherlands. Superfast Ferries already operate a successful ferry service in the North Sea, between Scotland and Belgium.
The port currently handles coaster-size cargo vessels and is also the principal UK base for the offshore gas industry in the southern North Sea. Great Yarmouth has handled wind farm projects and is ideally placed for future offshore contracts.

The business plan for funding the outer harbour envisages a commercial investment, based on the £4-5m existing port income and contracted new revenues from the outer harbour, supplemented by capital grants. The original submitted proposals in 2001 were:
• £6m from EEDA
• £3m from European Structural Funds ("Objective 2")
• £2m from Norfolk County Council
• £1m (land) from Great Yarmouth Borough Council.

The grant funding finally approved includes provision for inflation and project contingencies over and above these sums.

Source:   East Port Great Yarmouth Ltd.