It’s all hands to the pumps at the Falmouth Harbour Commissioners (FHC) to stop the ship sinking after the organisation suffered a disappointing year in 2014 which saw income levels drop due to the depressed level of shipping and increased costs relating to the multi-million pound pension deficit repayments.

FHC delivered its annual report at the Maritime Museum at which only 12 members of the public attended the meeting.

In a major re-organisation of FHC the leisure services and commercial shipping sectors have been split and re-branded into Falmouth Haven and Falmouth Pilotage Services respectively.

At the meeting commissioners representing FHC’s two dedicated service arms, Falmouth Haven and Falmouth Pilot Services, also each gave a presentation.

Carrie Gilmore, Chair of Falmouth Haven’s management panel, provided an overview of the company’s highlights in its inaugural year; Carrie discussed the enhancement of the leisure offering and customer information, increasing visitor numbers and improving facilities for visitors and resident moorings. Gary Tranter, Chair of Falmouth Pilot Services management panel gave the audience an insight into the operations of its 24 hour, seven days a week pilotage service.

FHC chairman Dave Ellis said in his annual review: “ Our financial results from 2014 reflected the depressed level of commercial shipping movements in the port and increased costs relating to pension deficit repayments.”

Mr. Ellis said he was confident that “the strategic changes made to the organisation will deliver benefits and enable the organisation to fully meet its obligations and responsibilities going forward.”

The report said: “ The overall performance for 2014 shows an operating loss of £4,399 compared to an operating profit in 2013 of £107,834. This results from a drop in turnover of £104,460 and increased deficit repayments and associated costs of £20,579. There were also increased operating costs associated with the re-organisation”

The Commissioners income from commercial shipping and pilotage took a hit with the number of ships calling for bunkers down on 2013. Revenue dropped by 12.2 per cent compared to 2013 whilst FHC’s leisure related revenues increased by 7.3 per cent. Over 50 per cent of commercial shipping income comes from the bunkering operation.

It is evident from reading the report that the commissioners plus the various management teams are keeping the ship steady, heading into wind and sea in order to weather the financial storm.

With the docks heavily geared up for MOD refits and base porting for ships of the grey funnel line the port has taken on a whole new dimension in recent years.

This will only multiply next year with the first of the new RFA Tide class vessels arriving for military customisation. The four ships will occupy alongside deep-water berths for many months during a staggered period over the course of two years. With cargo operations, cruise ship calls and RFA ships under repair there may be not enough deep water berths available at certain times of the year to accommodate the requirements of the customers.

Added to this the cyclical and volatile nature of the bunkering and ship repair business and the port’s almost static cruise ship market in terms of numbers of ships and FHC may be financially hit again this year and next year.

FHC was rocked from stem to stern by a huge pension deficit repayment of over £3.3 million after a High Court ruling gave the Pilots National Pension Fund (PNPF) trustees powers to seek deficit contributions from Competent Harbour Authorities engaged or previously been engaged in employing or authorising pilots. Furthermore, FHC has to pay contributions of £1.5 million to the Cornwall Council Pension Fund.

The FHC report is well padded out with the usual corporate management “speak” but in my opinion it still lacks the detailed information stakeholders deserve to see.

For example Fowey commissioners presented a 16 page 2014 financial report which included income from pilotage, towage, harbour dues, number of ships handled etc. In the costs column the public see where the expenditure goes in staff costs, maintenance and many other items.