Boat owners and leisure users in Falmouth are going to be hit by a maximum 30% hike in charges by Falmouth Harbour (FH) as the authority encounter stormy seas after challenging years where trade has been seriously affected by many factors beyond its control.

This will undoubtedly lead to a backlash from disgruntled harbour users.

FH is currently in the process of informing leisure customers who use facilities including moorings, berths and boat parking of significant charge increases for the Trust Port in the 2022 season, which are required to address market conditions and ensure its commercial and environmental viability for the future.

The increases – most of which have been limited to a maximum of 30% depending on the size of vessel – will rebalance historically low charges whilst keeping them competitive, fair – and in many cases still less than market levels.

Falmouth has always enjoyed favourable prices for leisure users compared with other UK south coast ports but times have changed. The harbour management team has carried out a thorough analysis of pricing policy for both commercial and leisure operations. An in depth study of other ports charging schedules has also been examined to ensure FH is being fair to its stakeholders.

“No one likes price rises but we have had to accept that we cannot maintain, keep safe and grow this spectacular and vibrant sailing and commercial harbour if we continue to under-charge for services we have a statutory duty to provide,” said Falmouth Harbour CEO Miles Carden.

“We are faced with considerable challenges of increasing costs which are unavoidable and cannot be delayed any further as the future of the Harbour depends on it.”

Miles Carden, a man with a strong business background in Cornwall, has been CEO for just one year. He is the man charged with keeping the ship buoyant with new ideas and strategies to reverse the downward trend in revenue.

These days a CEO of any port requires a good business brain, industry connections, communication skills and innovative ideas to enhance the port infrastructure.

“Falmouth Harbour is a Trust Port and its primary duty is to sustainably and safely manage the harbour – which benefits the local economy, the environment and our local stakeholder communities and customers.

“The price rises have been driven by increasing costs, market forces, price inflation and a continuing global economic instability caused by the pandemic. The increases will help Falmouth Harbour meet its statutory duties and the commitments to maintaining a thriving and safe harbour for the benefit of everyone,” added Miles.

The FH Annual Report for 2020 is a stark reminder that the authority requires a damage limitation exercise in place to put the organisation back on course.

All the 2020 figures are down: commercial shipping down by 16.9%, leisure by 19.1%, pilotage 17.3%, number of ships 25% down, bunker ships 12.5% and income overall down by 17%. FH has a liability of £2.65 m to the Pilots Pension Fund, which should be paid off by 2028.

Commercial shipping revenue in Falmouth is down due to several factors. In 2020 the port did not welcome one cruise ship although The World laid up in the docks for several months. Bunkering is currently at an all time low as Trafigura continue to bunker ships offshore when good weather conditions prevail.

A&P Falmouth has the vital Cluster contract generating much income for the A&P Group and town but the RFA ships remain alongside the docks for months on end.

The Department of Transport 'Ports Good Governance Guidance' states: “Trust ports are commercial businesses and so must aim to generate a financial surplus. Trust ports should establish a target level of return for existing activities as well as new investments, including an appropriate element for contingency and risks.

"When pursuing a target for returns, trust ports should set its harbour dues and other charges and assess its investments at commercial and competitive rates, neither exploiting its status as a trust port to undercut competitors nor abusing a dominant position in a market.

"Trust port boards should carry out their functions and tasks in the interest of all stakeholders in a transparent and accountable way.”

After the initial rebalancing increases which come into effect for the 2022 season, Falmouth Harbour aims to maintain future charges at levels around the rate of inflation.

In 2020 the dual role of Harbour Master and Chief Executive, which had been in place for decades, was split.

With hindsight this role should have changed long ago, when port management became more complex, especially from a business perspective.

In addition the authority has huge safety and environmental responsibilities imposed upon it by Government legislation.

The harbour authority, in my opinion, reached a point where it became too autocratic and out of touch with the man in the street. This attitude has changed dramatically for the better now with Carrie Gilmore, the chair at the helm, Miles Carden as CEO and Captain Duncan Paul the harbour master handling FH operations within its waters.

To find out more about the work of Falmouth Harbour on how charges are used to invest in the harbour and the local community see www.falmouthharbour.co.uk

A full Q&A and schedule of charges will be issued online during the week commencing February 7, when all customers will be sent detailed charges for their particular service.