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Print articleDublin Vision
Coordination, determination and ambition will ensure Dublin’s success
 Glenn Murphy, director of the Irish Maritime Development office |
Dublin might not be the size of Singapore or boast the heritage of London, but as a maritime city, it is fast becoming recognised as an up-and-coming place to do business. With six per cent GDP growth, one of Europe’s richest populations and a thriving industrial and economic base it’s no surprise that the country has attracted over 1,200 international businesses within the last 10 years.
Commitment from successive governments to drive down taxation and maintain a climate of stability has been fundamental to this business growth and, as a result, Ireland is now recognised as a leading European location for financial services, pharmaceuticals, IT and telecoms. But as a small island on the periphery of Europe, Ireland understands the importance of maintaining and developing strong and reliable international transport links to sustain its growing commercial base. And with 99 per cent of trade arriving and departing Irish shores by sea, the country is well aware of the need to nurture its commercial maritime industries.
Small is beautiful
As maritime cities go, Dublin is probably one of the smallest, but that hasn’t diminished its determination, sense of purpose or recent record of achievement. Having made the decision to grow its maritime cluster only relatively recently, it now finds itself in the enviable position of being able to cherry pick the best elements from other maritime administrations.
To coordinate this growth, the Irish government established, by statutory mandate, the Irish Maritime Development Office (IMDO) in 1999. Charged with advising the government, promoting growth and encouraging inward investment for all things maritime, the IMDO spent its formative years examining other maritime regimes and talking to maritime players already established in Ireland. As expected, the introduction of an Irish tonnage tax was quickly identified as the minimum requirement for the country to take its place on the international stage.
The tonnage tax, introduced in 2002, is the lowest in the EU and is based on a notional profit taxed at just 12.5 per cent with no major strings – such as a training obligation – attached. Unlike many other regimes, the Irish government has given a commitment to maintain the status quo until at least 2025. There aren’t any guarantees in politics, but the fact that current and previous administrations have shown solid support for the maritime industry gives a reasonable indication that Irish tonnage tax will remain in place with no significant change. Its introduction has been rewarded with a rejuvenated fleet which has grown by 240 per cent and, for the first time, the inclusion of a number of non-Irish-owned vessels.
Driving diversification
Ireland’s marine services industry, with Dublin very much at its heart, directly employs around 12,000 people and turns over some €2 billion. Of this, shipping and maritime services account for around €1,275 million, water-based tourism €566 million, Ireland’s cruise industry €66 million and the remainder comprising a range of other service providers. Although small, the maritime service sector is healthily diverse and is growing. Agents, forwarders, brokers, insurers, lawyers and managers are all represented and, most recently, maritime banking and finance activities have begun to emerge. This is due, in part, to the tonnage tax which makes the country a particularly competitive location to own and operate ships.
Operators in this sector have hopes of offering a new layer of added-value activity in the intellectual management of foreign direct investment in shipping companies’ assets and activities. Such is the importance of Ireland as a fledgling centre for ship finance, the international Marine Money organisation is staging its first ever Irish conference in Dublin in October this year. This major conference follows another first for Dublin – the European shortsea organisation Coastlink held its annual conference in the city earlier this summer.
Ireland’s cruise industry is also growing with the help of Cruise Ireland, an organisation dedicated to coordinating and growing the sector. Over 170 cruise calls were made to Ireland’s ports in 2006 with more than 50 per cent of the passengers hailing from the United States. Royal Caribbean cruise ship Freedom of the Seas – the largest cruise vessel operating in European waters – made her maiden call to an Irish port last year. Whilst Dublin remains a popular cruise destination, a number of the smaller ports are also attracting calls from smaller, specialist vessels.
Keeping the momentum
But despite abundant growth and development, Ireland has resisted complacency. It understands that it has to compete on the world stage and has a strategy to do just that. “Sea Change” is Ireland’s integrated maritime strategy, drawing together the many strands of a diverse industry.
Among a range of initiatives, it sets out to grow Ireland’s shipping and commercial maritime services over the coming six years and to increase the value of the sector from its current €3 billion to €4.5 billion. Around €365 million has been earmarked to assist the central aim of championing Ireland’s maritime industry as a driver of development through R&D, innovation and technology transfer. Quite rightly, Ireland recognises it cannot complete on all fronts and has chosen to build on its impressive R&D track record in other industry sectors and rely on a successful transfer of knowledge to the maritime industry.
Universities and colleges in Ireland have a strong tradition of collaboration with industry, particular in emerging high-technology sectors, and initiatives are under way to extend this cooperation to the maritime industry. Although located in Cork, the Irish government recognises the importance of fostering an environment that is supportive of the Irish maritime industry and instigated the development of the National Maritime College of Ireland (NMCI) in 2004. This new national institution provides stateof- the-art facilities at a centre of excellence for maritime education, and will provide a supply of highly trained and skilled maritime professionals for the future.
Part of Dublin’s charm as a maritime city is that it is a thriving working port handling around 6.5 million tonnes of bulk cargo and more than 650,000 teu annually. Container traffic is growing (up 15 per cent from 2005) and for the first time, Ireland’s ports, as a cluster, handled more than one million teu . Container throughput in Ireland is linked closely with the demand of its merchandise sector and last year exports grew by two per cent to €88.7 billion, imports grew by five per cent to €60 billion. Although it is likely that 2007 will see a slow down in economic growth, even the forecasted modest rise of four per cent will result in even higher throughputs this year.
After hours
There is a strong work ethic in the city and an enthusiasm for getting things done but it is not all work and no play. Dublin is a very lively and sociable city and the maritime industry likes to gather regularly to network and discuss business in less formal surroundings. Smaller gatherings throughout the city are commonplace and larger dinners, attracting 500 guests or more, are held each year by the Institute of Master Mariners and also the Dublin branch of the Institute of Chartered Shipbrokers.
Visitors to Dublin no longer see barrels of Guinness being transported by barge to waiting steamships, but they will experience a city with a maritime heart that is beating more strongly than ever. Ambition and determination are driving Dublin to redefine its maritime sector and to implement a business and political structure that actively encourages growth. Efforts by the IMDO and other agencies are beginning to pay off and, as any visitor to the city will confirm, Dublin’s enthusiasm for all things maritime is infectious.
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