On 16 May 2011 the Department for Transport launched a new consultation period, inviting views on a revised set of criteria which might better reflect Government policy on the sale of Trust Ports, such as Dover. The new consultation period will run for six weeks until 27 June 2011.
Community participation in the port is at the heart of these revised criteria. Dover Harbour Board (DHB) believes its scheme for privatisation will give the port and its community a better future by:
1. Establishing the Port of Dover Community Trust (PDCT), enabling the community to become true partners and share in the prosperity of the port by direct cash contributions, for the first time in the port's history.
2. Creating an Employee Share Ownership Trust (ESOT) which will involve all port employees in a share ownership arrangement that further adds to local ownership - staff are part of the community too.
3. Allowing the port to use its strong commercial position and the skills and experience of its staff to grow the business, add value to the community and to the port, and create new opportunities and jobs.
In April 2011 independent consultants Arup reported back to DHB on the potential scale of regeneration and economic development likely to arise from the creation of the PDCT. This would follow the privatisation of the Port and the creation of a new operating company (OpCo) as a subsidiary of the Dover Harbour Board.
The PDCT would receive a £10m initial cash settlement from OpCo as well as funds for the purchase of shares in the Port, which are anticipated to have a value of approximately £20m at the point of sale. There is a commitment by OpCo to contribute £1m per annum over the first five years in lieu of dividends, with future funding coming from market-rate dividend returns on the shares.
After factoring a number of considerations Arup calculates that the PDCT could have a total estimated potential economic impact of the order of £95m over the first five years and £60m annually thereafter.
The PDCT represents a fundamental change in the port's relationship with the town and district and provides for the first time an opportunity for the community to benefit directly and financially from port activities and to share in the port's success.
DHB's privatisation scheme, and particularly the PDCT, appears to fit extremely well with Government's latest thinking on the criteria for the sale of trust ports. This encouragement has spurred Dover Harbour Board to engage with as many people as possible during the next six weeks in working hard to create positive momentum, interest and enthusiasm for a PDCT which works for the community.
So what happens next? The Government, through the DfT, could issue a 'minded to approve' decision for the privatisation of the Port of Dover. Any sale would not happen immediately, but would be likely to take until at least the middle of 2012. In the event of a 'minded to approve' decision, DHB would immediately prioritise, in advance of any sale process beginning:
1. Formally establishing the PDCT in readiness for the injection of at least £10 million at the point of sale of the port.
2. Consulting widely with all of their stakeholders, most especially the community and customers, so that those stakeholders are kept as fully informed as possible as the process develops and the sale goes ahead.
In advance of this, DHB wish to work with the community in establishing what it wants the PDCT to do for Dover
DHB have said: "This is an exciting time for the Port of Dover and most especially the community. With the help of the entire port community and the town of Dover, supported by new investment, it really could become the expanded, world class port facility we wish to see for the benefit of future generations of users and for the community of Dover as a whole."
