Huge marina fee hikes agreed as Ports wrestle with multi-million pound losses

Tuesday 14 November 2023

The States’ Trading Supervisory Board has decided to press ahead with inflation busting fee hikes at the ports.

Of those, the biggest are those aimed at private boat owners, but they hit every facet of the operations including air passengers, freight handling and cargo shipments.

Guernsey Ports - the harbours and airport - is forecast to make a loss of £6m this year, which will mean since 2020 taxpayers would have pumped £30m. into the operation.

It has begun a three year financial transformation programme which includes both raising more money and making savings.

“Given the current pressure on States finances, it was felt important to make significant inroads in reducing Guernsey Ports reliance on general revenue,” said Guernsey Ports managing director Colin Le Ray.

“We identified where there is scope for raising additional income now, and focussing on user charges means the greatest contribution will be from those who benefit most from the facilities we provide.

“We are also aiming to reduce our operating costs. A full review of expenditure is underway to identify savings and efficiencies, and those will be key to improving our financial position.

“However they may take more time to realise the full benefits, and cost savings alone will not be sufficient to return Guernsey Ports to a fully self-funding position.”

The fees increase hit in 2024 and will raise around £5m. next year.

It is forecast that roughly 40% will come from the airport, 40% harbour’s commercial operations and 20% leisure activities at the harbour.

Leisure mooring fees have proven controversial and will see the largest increase in money terms. 

The cost of a marina berth will rise by between 20 and 30.5% from April 2024. This will add around £400 to the annual charge for a medium-sized boat, for a large boat over 750 square ft it will be an extra £2,020.

For visiting boaters a 17.1% fee rise will happen. For the smallest vessel, the mooring charge will go from £25 to nearly £30 for 24 hours, and for the largest it increases from £311 to £364.20. 

There have been warnings that the rises could force boat owners to sell up instead of paying the increased costs and that focusing on the harbour is unfair given that the losses are made at the airport.

More fee hikes could follow with a review of their impact being pledged before a decision on what happens in 2025 and 2026.