The official version of this document can be found via the PDF button.
The below content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments.
Policy Framework for the Ports Sector
DECEMBER 2023 R.4/2024
1
Policy Framework for the Ports Sector
Contents
Ministerial Foreword 4
Introduction 5 Purpose of the Policy Framework 5 The Ports Sector 6 Vision and Goals 7 Our Strategic Priorities 8
Our Strategic Priorities
- Safety and security 10
- Sustainability 12
- Strategic air connectivity 16
- Strategic maritime connectivity and supply chain resilience 20
- Investment in critical infrastructure 24
- Development of our harbour and airport estates 28
- Economic regulation and governance 32
- Public Service Obligations 34
Policy Framework for the Ports Sector Policy Framework for the Ports Sector
Foreword Introduction Deputy Kirsten Morel
Minister for Sustainable Economic Development
Purpose of the Policy Framework
As an Island nation, we depend on the resilience and efficiency of our Ports Sector. The Ports Sector plays a crucial role in facilitating economic development and prosperity as well as maintaining connectivity which is vital to our well-being and our Island way of life.
The Ports Sector is an important enabler of economic development and all that it can provide for Islanders. This policy, the first of its kind in Jersey, establishes the priorities for the Ports Sector:
Safety and security
Sustainability
Strategic air connectivity
Strategic maritime connectivity and supply chain resilience Investment in critical infrastructure
Development of our harbour and airport estates
Economic regulation and governance
Public service obligations
This policy framework, instigated by the Ports Policy Ministerial Group, is intended to help
all stakeholders better understand the outputs Government is seeking from the Ports Sector. This framework, outlines the Government s policy direction and priorities for the sector. The Government is seeking a safe, secure and sustainable Ports Sector that is efficient, accessible and resilient to support the development of Jersey s economy, in order to deliver greater prosperity, security and opportunities for Islanders. The Ports Sector enables economic activity - by moving people and goods and connecting Jersey as a trading nation to our overseas markets
- as well as significant social value.
The Government is committed to giving Islanders the Ports Sector they need. Therefore, we have identified our policy direction for the sector and will support the investment decisions required. Looking to the decade ahead, there are exciting opportunities before us sustainable travel by air and sea, the opportunity to transform and regenerate St. Helier Harbour, the creation of a new and future proofed airport. We need to grasp these opportunities to maximise the vital contribution of the Ports Sector, to enable economic development for our Island.
Deputy Kirsten Morel
Deputy Chief Minister and Minister for Sustainable Economic Development
To provide the policy guidance, with safety and sustainability at its core, required to:
- support the continued development of a resilient, reliable and efficient Ports Sector;
- deliver generational investment in critical ports infrastructure;
- safeguard life-line services and the growth in connectivity.
Connectivity underpins Jersey s economy and the lives of all Islanders. We depend on aviation for our links with the rest of the world both socially and economically, and our maritime supply chain for the resilient, reliable and efficient movement of freight.
At the heart of the Government Programme is a commitment to create a sustainable and vibrant economy. Supporting economic development and productivity improvements, managing the cost of living, delivering on Jersey s environmental commitments and ensuring that Jersey s infrastructure is fit for the future, are all vital components of that commitment.
As part of the incorporation of Ports of Jersey in 2015, the Government of Jersey set out a number of objectives for the then newly incorporated Ports of Jersey, to enable it to continue the provision of essential public services to the Island in a sustainable manner.
However, no explicit or specific forward-looking sectoral policy was developed at the time that reflected the objectives of incorporation or Government s wider strategic goals and vision for this vital sector.
In November 2022, the Minister for Sustainable Economic Development reconstituted the Ports Policy Ministerial Group ( PPMG ). The PPMG provides ministerial direction and support to enable the effective and efficient implementation of key strategic priorities in the Ports Sector.
Given the economic importance of the sector, and the imperative to both meet the challenges and seize the opportunities of Jersey s future economy, the PPMG determined that this Strategic Policy Framework for the Ports Sector be developed.
Whilst Government, Ports of Jersey and the Jersey Competition Regulatory Authority ( JCRA ) are most able to implement the strategic priorities and policy objectives of this Policy Framework, it is directed at the entire ports ecosystem including the network of airlines, shipping companies, freight companies, stevedores, marine engineers, leisure users and others. The Policy Framework is intended to provide clarity and ensure alignment for all stakeholders.
Policy Framework for the Ports Sector
The Ports Sector
For the purposes of this Policy Framework, the Ports Sector includes:
Government - Supported by standalone departments including Economy; Treasury and Resources; External Relations; and Justice and Home Affairs.
Ports of Jersey - Owner and operator of critical harbour and airport infrastructure. They are also responsible for various public service obligations including: co-ordinating, or providing resources for co-ordinating, maritime search and rescue within the Jersey Search and Rescue Region; maintenance of aids to navigation in territorial waters; acting as custodian of Jersey harbours; enforcement of shipping legislation in territorial waters; carrying out certain Port State Control functions; and, management of the Channel Islands Control Area.
Airlines - Scheduled airlines operating regular services to many UK destinations as well as a number of European destinations on a more infrequent basis. There are also several charter airlines that serve Jersey s tourism industry.
Private aviation Private charter, business charter, and fixed-based operations based at Jersey Airport s private aviation terminal and light aircraft services, general aviation and training at the Aero Club.
Shipping operators Shipping companies providing services to UK and Europe. These include roll-on roll-off freight and passenger ferry services on the northern and southern routes, a further passenger ferry operator providing seasonal services inter-island and to France, and several specialist lift-on lift-off containerised freight, bulk freight and fuel services operators.
Freight operators Providing storage and transport of goods from point of offload (ferry / plane) to businesses and customers. Most require warehousing within or close to the harbour estate.
Leisure users and supporting businesses Aviation services provided through the private aviation terminal and the Aero Club. Marine leisure services across Jersey s multiple marinas (predominantly in St Helier) which support maritime leisure and hospitality businesses.
The Blue Economy Includes Jersey s fishing fleet and maritime and marine specialists including engineers and ecologists.
Wider stakeholders Customs, Coastguard, Air Traffic Control, air and sea search and rescue operations, ground handlers, stevedores and ancillary ports services.
Policy Framework for the Ports Sector
Vision and Goals
Our vision is:
To build a more resilient, efficient, smart and sustainable Ports Sector that creates economic, environmental and social value for the whole of Jersey, helping make our beautiful Island an even greater place to live, work and visit.
The overarching policy goals are:
To further enhance Jersey s connectivity by ensuring safe, secure and competitive services,
responsive to the needs of business, tourism and consumers;
To ensure the resilience of Jersey s life-line air and sea links, by investing in critical gateway
infrastructure;
To maximise the contribution of the Ports Sector to Jersey s economic development and
development in accordance with the Future Economy Programme; and
To ensure all actions are guided by our environmental objectives. Alignment to critical Island interests:
Treasury and Resources
Shareholder relationships, finance, governance, risk
Economy Infrastructure Ferry services,
Impact of infrastructure connectivity, productivity, planning and integration sectoral development,
at airport and harbour cost of living, Coastguard
Government of Jersey
Ports of Jersey Justice and EnvironmentDecarbonisation, JCRA Home Affairs
sustainability, Resilience forum, planning authority customs and security,
contingency planning
Housing and External Communities Relations
Island housing needs, Airport regulation (DCA), town integration, leisure Channel Island Control use and public space Zone, Island Identity
Policy Framework for the Ports Sector
Our Strategic Priorities
The Policy Framework for the Ports Sector will be framed around the following eight strategic priorities. Each of these strategic priorities is outlined and explored over the following pages.
Safety and security
- We will ensure that safe and secure operations are the priority for the Ports Sector, and that safety regulation is robust, effective and efficient.
Sustainability
- We will ensure that the Ports Sector is sustainable in respect to our economy, our environment and our community.
Strategic air connectivity
- We will nurture our existing route network and create the conditions to develop sustainable development in high-value air connectivity (in particular into Europe) and in aviation services.
Strategic maritime connectivity and supply chain resilience
- We will ensure Jersey s life-line ferry services are resilient, reliable, customer-focused and deliver growth in passenger volumes. We will develop the conditions to drive competition and efficiency across the maritime supply chain.
Investment in critical infrastructure
- We will enable investment in critical gateway infrastructure to ensure its long-term resilience and deliver visitor experiences that Islanders are proud of.
Development of our harbour and airport estates
- We will support the development of the Harbour and Airport estates, creating opportunities for economic development, enhancing the public realm and supporting wider Government priorities in the visitor and blue economies.
Economic regulation and governance
- We will maintain a regulatory framework for the Ports Sector that reflects international best practise, with economic regulation that protects consumers and facilitates critical investment.
Public Service Obligations
- We will monitor and review the Public Service Obligations of Ports of Jersey to ensure they continue to be discharged in accordance with best practice.
STRATEGIC PRIORITY 1: Policy position
Safety and Security Operational safety and security of the Sector shall remain the first priority of the PSector. orts
Ports of Jersey, and the wider sector, must:
We will ensure that safe and secure operations are the - seek both the continuous improvement of operational safety and security standards priority for the Ports Sector, and that safety regulation and compliance with regulatory requirements and industry best practise;
is robust, effective and efficient. - ensure that identified safety and security risks are consistently, continuously and
thoroughly addressed; and
- maintain robust systems for reporting occurrences that may affect safety.
Background Issues
Safe and secure port operations, specifically related to passengers and those employed in the sector, is the primary sectoral focus of Government. Maintaining the highest standards in safety and security, regulatory compliance and industry best practice, underpins all other objectives and principles within this policy framework.
The Harbours (Administration) (Jersey) Law 1961 and The Aerodromes (Administration) (Jersey) Law 1952 contain various provisions in respect to the operational policing of safety and security matters in both its airspace and harbours.
Such provisions require the appointment,
by the Minister for Sustainable Economic Development, of a Harbour Authority and
an Airport Authority together with a Harbour Master and Airport Director to perform various functions on behalf of the Minister.
These operational safety and security provisions are separate to the wider non- operational public service obligations (considered separately under this Policy Framework) which are integral to the legal establishment and incorporation of Ports of Jersey.
Government s primary role is to ensure operational safety, security and regulatory compliance through the legislative and organisational arrangements and structures it has established for this purpose.
The Minister has appointed Ports of Jersey as both the Jersey Harbour Authority and the Jersey Airport Authority and has appointed officers of Ports of Jersey as Harbour Master and Airport Director.
Ports of Jersey was established by Government with the primary objective to provide, or ensure the provision of, safe, secure and efficient port operations for Jersey, whether by itself or by any other person acting as its subsidiary, agent, employee or sub- contractor.
Its establishment also determined that Ports of Jersey is required to exercise its powers so as not to conflict with the interests of aviation and maritime safety and security.
Ports of Jersey is required to maintain the high levels of sector specific knowledge and expertise required to discharge these functions.
Environmental sustainability STRATEGIC PRIORITY 2:
Background Sustainability Inemergency2019 the . The climate emergency and the States Assembly declared a climate
loss of biodiversity are the critical challenges We will ensure that the Ports Sector is sustainable in respect of our time.
to our economy, our environment and our community. To confront the climate emergency, the States
Assembly voted unanimously to approve the
Carbon Neutral Strategy 2019 and later, the
Carbon Neutral Roadmap (approved April
2022) which sets a clear emissions reduction Economic sustainability ensure that long term operator partnerships trajectory towards net zero.
are financially resilient, to ensure delivery of
Background the Island s strategic priorities. The Carbon Neutral Roadmap and extension
of the Paris Agreement to Jersey creates a
The Covid-19 pandemic had an unprecedented
The JCRA s 2022 Freight Logistics Market commitment to reach net zero emissions by impact on much of the Ports Sector, in
Study made various recommendations 2050, with interim targets set for reducing particular those companies delivering
from a competition perspective aimed at emissions.
passenger services, marine and fishing supporting competition in the freight sector
services. (which has strong participant cross-over Issues
with the Ports Sector). Implementation of the
Pprojected to reach pre-pandemic levels in assenger volumes are recovering and are recommendations should help support the
The nature of Jersey s economy is a major
driver of its global environmental impact. 2025. Nevertheless, the residual financial economic sustainability of both sectors.
Our air and sea transport links are essential impacts of the pandemic continue to impact From a taxpayer s perspective, Ports of Jersey to our Island life. Our economy and the way many of the companies in the Ports Sector. The was established to be financially independent we live our lives relies on these links, but economic sustainability of the sector requires from Government. Ports of Jersey is funded we must acknowledge and deal with their careful nurturing in the coming years. from income (charges and fees) from delivering environmental impact.
Issues its services. Its commercial success and
The Ports Sector exists predominantly to serve economic sustainability are not only vital from
our community and wider Island economy. Our just-in-time supply chains and Island living a taxpayer perspective but also in ensuring the
However, the Carbon Neutral Strategy
place significant reliance on the continuity of wider economic success of the sector.
2019 noted that in 2017 transport (all forms) our critical aviation and maritime supply chains
accounted for 51% of Scope 1 and 2 emissions and the financial resilience of key operators.
in Jersey, with road transport responsible for Long-term economic potential is typically approximately 63% of those transport related determined by people and skills, capital emissions and air and sea 37% (19% of total investment, and the business environment. Policy position emissions).
Sector participants are often reliant not only on Low-carbon technologies for air and sea
their own investments in these areas, but also The Ports Sector should seek to transport are still in the relatively early stages on the investment by other sector participants. appropriately invest and innovate in of development and implementation but are Positive decisions and actions by one sector respect to their people, skills, and receiving global attention and importantly participant can benefit the rest of the sector infrastructure, and seek to positively investment.
and vice-versa. collaborate to generate mutual
Sectoral benefits.
Some of these considerations are covered Long-term operator partnerships elsewhere within this Policy Framework, must be financially resilient and including investment into critical infrastructure, help deliver the Island s strategic development of the harbour and airport priorities.
estates and regulation. Government must also
Policy position
Government commits to delivering
the Carbon Neutral Roadmap as part of this policy framework.
Government will work with Ports of
Jersey to reduce emissions from aviation and marine transport, in line with the Jet Zero scenario 2 emissions targets and obligations under the MARPOL treaty.
Government will coordinate closely
with the UK aviation industry and government, to support its leading role in the work of the International Civil Aviation Organisation (ICAO) to reduce emissions from international aviation.
Government will work with Ports
of Jersey to explore improvements in modal interfaces at the port and airport, and include medium-term investment plans for walking and cycling infrastructure.
The Ports Sector must play its part
to ensure Jersey reaches net-
zero. To do so the sector should invest in collaborative and innovate processes, technologies and infrastructure.
Ports of Jersey should explore
using tariff structures, to support the transition to cleaner technologies for ferry and aviation services.
The Ports Sector should seek to
contribute to biodiversity net gain and to preserving our land and marine environments.
Where the Ports Sector undertakes
construction, it should be undertaken sustainably, adopting circular design principles.
Policy Framework for the Ports Sector
Community sustainability The built environment of our harbour
and airport estates directly impacts the Background communities that either form part of those
Community sustainability comprises many estates or that work and live alongside them. factors, including: employment and workforce; We should seek to make our harbours and
economy and skills; our local environment; the airport welcoming and accessible to all
safety, inclusivity and vibrancy of communities; Islanders and to ensure that they are places impacts on children and families; our ageing that we, as a community, are proud of. population; health and wellbeing; and cost of
living and housing. These are not exclusive. There is a moral duty on all Sector participants
to positively contribute to our Social
Issues Sustainability and make our Island an even Almost all of these factors are influenced and better place to live, work and play.
impacted by our connectivity. Operational
efficiency and competition directly impact
Islanders cost of living. We rely on the Ports
Sector for virtually all the goods we consume, Policy position
the transport of construction materials, our
ability to connect with off-island friends and The Ports Sector should seek to relatives, access to education and specialist embed community sustainability into medical care, as well as to go on holiday. The strategic planning and commercial Sector is both a major employer and indirectly decision making.
responsible for employment opportunities
across the Island.
Jersey s Performance Framework
The vision for Jersey set out in the Future Jersey Strategy is:
An Island loved for its beautiful coast and countryside, rich heritage, diverse wildlife and clean air, land and water. An Island where a sense of community really matters a safe place to grow up and enjoy life. An Island that offers everyone the opportunity to contribute to, and share in, the success of a strong, sustainable economy.
The Ports Sector can seek to deliver this vision through ensuring its contribution to environmental, economic and community sustainability.
pandemic, and Jersey passenger numbers STRATEGIC PRIORITY 3: are projected to reach pre-pandemic levels
in 2025.
Strategic air connectivity Jersey numbers has been achieved by putting in s success in rebuilding passenger
place framework agreements with key airline We will nurture our existing route network and create the partners, creating the conditions for them to
conditions to develop sustainable development in high-value deliver profitable growth.
connectivity (in particular into Europe) and in aviation services. The mix of open skies access to Jersey coupled with the commercial incentives
and marketing support provided to airlines
has proved successful in growing our Background need for airlines to be issued permits with
connectivity.
associated service level obligations to fly to
Air connectivity is the life-blood of our Island. and from Jersey. This allowed Jersey to take The market for airline services is incredibly It is a key driver of our Island s economy. greater advantage of competition. competitive and Jersey competes with
It enables corporate travel, enhances the
airports across Europe to secure new attractiveness of Jersey as a business hub and International studies repeatedly evidence the
air routes and services. Airlines operate feeds our visitor economy. positive impact of connectivity on the trade of
commercially, shifting capacity to the most goods and services, inward investment and
Air connectivity plays a critical social role, profitable routes with increasing frequency.
the development of business locations, as
providing essential links for Islanders to be well as the positive impacts connectivity has
able to access health care, education, to on employment, economic development and Pdevelopment and negotiating commercial orts of Jersey is responsible for route connect Islanders with friends and relatives productivity. arrangements with airlines. Visit Jersey is
and to enjoy leisure travel.
responsible for the promotion of Jersey as Trade in services is particularly important to
Jersey s air connectivity ensures Jersey is a visitor destination, to new and existing
Jersey s economy. Those business sectors
an attractive place to live and do business, markets.
with the highest propensity to fly are of
enabling high-quality talent to be secured and significant economic value to the Island. Together, all partners recognise the critical existing talent to be retained.
importance of our air links and will continue A 2019 report by Oxford Economics
Jersey s connectivity punches well above to work across all relevant sectors to nurture
estimated that the tourism sector, facilitated
its weight for a small European island. our existing network of routes and seek to
by connectivity to the Island, contributes
Jersey is served by an enviable mix of major develop ever-enhancing connectivity. This is
£372m to the Islands economy.
international and regional airlines, local also true of Jersey s sea connectivity which is operators providing dedicated regional The 10-year commercial loan negotiated explored in the next chapter.
services, and respected charter operators. with Blue Islands was estimated by KPMG
As Jersey has a comparatively small
to provide £620m impact on the Island
population, incremental changes in Connectivity can be divided into: economy over 10-years.
connectivity can have disproportionately
Direct connectivity: which refers to the A 2022 study by Oxford Economics beneficial impacts.
direct air services available from the airport,
measured not just in terms of destinations, estimated that the 5-year British Airways deal to London Heathrow has the ability The impact and benefit of air connectivity is but also the frequency of flights to those to increase GDP by £123m per annum and complex as is the likelihood of a new route s
destinations. support up to 1,200 jobs. success. Factors such as ease of access,
proximity to key locations, concentration
Indirect connectivity: which refers to the Issues of services, catchment, breadth of
number of destinations that can be reached onward European and wider-international
by connecting through a hub airport. The Covid-19 pandemic had an unprecedented connections (both to leisure and business Following a policy change by Government in impact on the travel sector globally with destinations) inform any benefits generated. passengers down 76% in 2020 and 61%
2003, and the subsequent repeal of the Air in 2021 on 2019 levels. There has been a Business travellers, leisure visitors, visitors Transport Permits (Jersey) Law 1998, Jersey strong recovery in passenger numbers post of friends and relatives, and departing adopted an open skies policy removing the
Islander leisure travellers each have different rationales for travel and desires to be met. Understanding these passenger segments and promoting services which meet their current and future needs, is critical to successful route development.
The key focuses of our approach to sustainably growing Jersey s strategic air connectivity will be:
To position Jersey Airport as a Regional
Hub within the Channel Islands and Northern France.
Commercialising Jersey s stronger air
connectivity to benefit local and nearby passenger segments outside of Jersey.
To build year-round connectivity to the UK
and Ireland, reducing the seasonality of visitors to Jersey.
To develop a sustainable network of
European destinations, with a focus on:
- Growing scheduled services to key European cities
- Building routes into Northern France (Normandy and Brittany), strengthening our cultural and economic ties, and offering easy access to the UK for people living in Northern France.
- Securing hub connectivity to a major European hub airport.
The development of our strategic air connectivity will be critically dependent on:
Ports of Jersey s ability to operate
commercially, building partnerships with new and existing carriers to secure additional services.
Visit Jersey s ability to market our Island,
building awareness of Jersey as a visitor destination, in particular in new markets.
Investment in our visitor accommodation to
provide additional capacity and to meet the needs of future travellers.
The development of our visitor economy to
provide a compelling year-round offer.
We must also acknowledge that network LITHU growth cannot be at any environmental cost.
Aviation plays a significant role in global CO2
emissions and Jersey s own climate change
story therefore, Jersey will not sacrifice its
responsibility to tackle the biggest challenge
of our time solely in pursuit of greater national
wealth. Recognising this, the Government
keeps environmental protection as one of
this policy framework s eight critical missions.
Detail is given within Strategic Priority 2.
Policy position
The Ports Sector should facilitate a dynamic and effective market for air services,
which enables sustainable connectivity, maximises the contribution of the sector to economic development in Jersey, and facilitates travel for islanders.
Supporting existing and growing new air connectivity routes is in Jersey s long-term
economic interest. Government will work with Ports of Jersey and Visit Jersey to support connectivity initiatives.
The Port Sector should closely monitor existing core routes to ensure they remain
viable and that they are maintained.
Government will maintain its open skies route access policy.
Government will seek ways to develop and support a year-round visitor market to
Jersey to support year-round capacity particularly on UK and Irish routes.
Government will seek ways to enable investment in additional visitor accommodation
and support diversification of the product offer, to ensure sufficient and attractive capacity for Jersey s inbound leisure market.
Government will work with the Ports Sector to explore opportunities to develop
European connectivity, including developing additional regional connectivity to support our traditional cultural and economic links with Brittany and Normandy, and seeking to secure connectivity to a major European hub airport.
Government commits to keeping to the targets within the Carbon Neutral Roadmap in
pursuit of this strategic policy objective.
Issues LoLo services to the Island provide an STRATEGIC PRIORITY 4: The Covid-19 pandemic highlighted the important counterbalance to the single operator position in the RoRo market.
Strategic maritime three critical components:
importance of the resilience and efficiency of
our maritime supply chain, which depends on The foot passenger only service provided by connectivity and Ferry services Manche Ile Express provides important linkbetween the Channel Islands and Normandyparticularly for inbound leisure visitors from s ,
supply chain resilience Ferry servicesPFreight logistics servicesort infrastructure and operations, and Francepassenger onlyto financial shock, as they cannot rely on supporting income streams from freight . However, they are more susceptible , as these services are foot
services.
We will ensure Jersey s life-line ferry services are resilient, Jersey is the largest of the Channel Islands
reliable, customer-focused and deliver growth in passenger and accounts for approximately 60% of freight Port infrastructure and operations volumes. We will develop the conditions to drive competition and passenger traffic to the Islands. Howeverscale in services is important, particularly , The resilience, capacity and flexibility of
and efficiency across the maritime supply chain. where bespoke, capital-intensive infrastructure Jersey importances port infrastructure is of critical given the operational constraints of
is required. Pan-Channel Island solutions to the harbour (extreme tidal range, susceptibility sea connectivity and supply chain resilience to weather disruption, and space limitations). are in the combined best interests of Jersey
Background Most LoLo freight also originates from
and Guernsey. At peak times, RoRo freight operations exceed Portsmouth, however LoLo freight (including current harbour capacity. Freight volumes are
Our maritime connectivity provides lifeline links bulks) is carried from a much wider variety forecast to increase as our population grows for both freight and passengers. of locations, including cement from Dublin, The scale of the markthe Channel Islands is best-suited to a single et for ferry services to and through additional factors such as the use
Islanders rely on our ferry services to Dunkirk, and various ports in the Netherlands. RoRo operation, with a high bar to entry to of imported sand and aggregates.
drive-off island, northbound to the UK and Jersey has an Operating Agreement (OA) competing services, but which ensures the
southbound to France and wider into Europe with Condor Ferries which provides de facto year-round provision of services. The limited availability of warehousing,
economically and socially they are our sea- exclusivity for the provision of RoRo freight and The current operating agreement with Condor particularly close to the harbour, coupled with based motorways. passenger services to Jersey. All passenger is due to expire in March 2025. challenging access to warehousing elsewhere on Island, means that Jersey s supply chain
Our maritime supply chain is responsible for vehicles and containerised RoRo freight is operates largely as a Just in Time (JIT) supply carrying nearly 500,000 tonnes of the Island s carried by Condor. Wthe provision of ferry services:e will ensure that the future arrangements for chain for our Islands supermarkets and stores.
freight. There is no exclusivity in respect to LoLo
Volumes of dry cargo are dominated by unit services. However, within Jersey s freight Unlocks investment in the fleet of ferry Wgenerational investment to reconfigure e will ensure that Ports of Jersey undertake load traffic comprising: ecosystem, there are a range of stakeholders vessels. the port infrastructure in St Helier harbour,
Roll-on roll off (RoRo) freight services, and partners: Provides capacity to deliver growth in to provide the capacity and resilience
predominantly in the form of unaccompanied Channel Seaways is the dominant provider off passenger volumes and to accommodate requirements for future generations (see trailers; and, LoLo services. Normandy Trader transports projected growth in freight volumes. Strategic Priority 5).
general freight and bulk timber from Granville Enhances the resilience and reliability of the Freight logistics services
Lift-on lift-off (LoLo) which is a mixture of and St Malo. ferry services.
containers (boxes), tank/fuel containers and The JCRA s Freight Logistics Market Study palletised cargo on flat racks. St Helier Port Services operates as the agent Increases the quality and value for money of (2022) made seven recommendations
for the transport of bulk cement and bulk passenger services on board. pertinent to the Ports Sector. The
The port also handles some dry bulktimber as well as bulk fuel oils, received from s and hydrocarbon fuels to Jersey. recommendations, which Government
tankers and piped to storage. Iris Freight and Vedette Jolie France transport Prioritises environmental sustainabilitywith future fleet arrangements supporting , supports, are:
comparatively small volumes of freight Jersey s carbon-neutral objectives. For Ports of Jersey to review the use of Most freight arrives through Rand is predominantly carried by conventional oRo services (Guernsey and Granville respectively). facilities and the leasing arrangements at the
ferries from Portsmouth, with smaller volumes Manche Iles Express provide foot passenger Provides the best value-for-money option for Islanders and operations that are financially harbour.
from Poole, Guernsey and St Malo. services between France and Jersey and sustainable.
seasonal inter-island services.
Policy Framework for the Ports Sector
The potential creation of temporary and Government supports competition in the targeted freight corridors between the freight logistics market or, in the absence of
harbour and warehousing elsewhere. effective competition, regulation of the market (considered in Strategic Priority 7).
Initiatives to drive operational efficiency.
Jersey has a history of close social and
Establishment of a freight industry trade economic links with Brittany and Normandy.
association. However, our supply chain links are dominated Development of a Government policy through established Northern route supply
framework to support effective competition chains. This reflects the dominance of UK
in the freight logistics market. supermarket and high street brands in Jersey.
Ensuring investment in port infrastructure We will explore the development a Southern (the Harbour Master Plan) supports effective supply route, and assess possibilities to competition in the freight logistics market. diversify our supermarket and high street
offerings, provide increased consumer choice, Government to support the development of value and economic development. Additional
existing and new freight routes to France. benefits might include enhanced resilience, reducing dependence on the Northern supply
route.
Policy position
Government will work with the Ports Sector to facilitate a competitive, dynamic and
effective market for maritime and shipping services, which enables sustainable and resilient connectivity, ensures our life-line maritime supply chain is maintained and which maximises the contribution of the sector to economic development in Jersey.
Government will work with the sector to achieve the targets set within the Carbon
Neutral Roadmap and will work with Ports of Jersey to monitor the marine sector
in line with the International Maritime Organisation s (IMO s) greenhouse gas strategy and in compliance with our obligations as a signatory to the IMO s pollution prevention treaty, MARPOL.
Government will ensure that the arrangements for the future provision of ferry
services, following the end of the current operating agreement in March 2025, will: unlock investment in the fleet of ferry vessels, provide capacity for growth in passenger and freight volumes, enhance the resilience and reliability of services, increase the quality and value for money of passenger services and prioritises environmental sustainability.
LoLo remains an important mode of freight transport for the Island and provides an
alternative form of competition for freight services.
The Ports Sector should invest in clean and SMART technologies and infrastructure to
improve the operational efficiency and sustainability of port operations.
Government supports competition in the freight logistics market, or in the absence of
effective competition, regulation of the market.
Government supports the Ports Sector exploring the development of the southern
supply chain.
Government will pursue and support initiatives that encourage inbound visitor travel
from France, helping to support both roll-on passenger and foot passenger only services to Brittany and Normandy.
22
Separately, the JCRA s Freight Logistics STRATEGIC PRIORITY 5: Market Study (2022) provided various
recommendations to the freight sector, Investment in Sector. The JCRA s recommendations, all of
which has strong cross-over with the Ports
which are supported by Government, target critical infrastructure enabling increased competition in the freight
sector. Recommendations impacting the Port
Sector include, seeking to increase capacity, We will enable investment in critical gateway infrastructure to flexibility and efficiency of harbour space and
operations.
ensure its long-term resilience and deliver visitor experiences
that Islanders are proud of. Investment in the resilience of the critical harbour and airport infrastructure, ensuring capacity is in place to meet future volumes
of passenger and freight traffic, must now be Background We will ensure that significant investment and urgently prioritised by the sector specifically
re-development of the Harbour and Airport Ports of Jersey. Appropriate investment should Our airport and harbour are the first and last is undertaken to ensure their resilience and also seek to unlock capacity and support
places visitors to our Island see. They play a allow them to meet the Island s economic and competition in the freight market.
critical role in the perceptions visitors form of environmental ambitions and Islanders needs.
our Island. The redevelopment of the Airport is
Issues required to safeguard and develop our
St Helier Harbour and Jersey Airport lifeline connectivity, ensure future regulatory are critically important national strategic The case for incorporation of Ports of Jersey compliance, meet forecast capacity infrastructure assets. St Helier Harbour is included the need to manage the risks to requirements, and support changing trends in integral to Jersey s life-line maritime supply public finances, including bridging a projected air travel, aircraft technology and aircraft size. chain while the connectivity provided by funding shortfall in-excess of £300million at
Jersey Airport is essential for business travel, the time of incorporation. This reflected the Sustainability must be embedded into every trade and tourism. significant under-investment in the harbour aspect of the development of the harbour and
and airport infrastructure over a protracted airport infrastructure. Government has taken Together, the Harbour and Airport make a period prior to the incorporation of Ports of a keen interest in Ports of Jersey s proposals
significant contribution to Jersey s economy Jersey. for the redevelopment of Elizabeth Harbour by generating, supporting and enabling a (as part of the Harbour Master Plan) and of diverse range of economic and social activity. The Bridging Island Plan noted both facilities the Airport Master Plan at both Ministerial and They support the employment of thousands of [the Airport and Harbour] are now ageing officer level. Government is supportive of the Islanders directly and indirectly and enable and are having to accommodate increased process undertaken by Ports of Jersey.
Jersey to be a place that people want to live, volumes of freight, larger vessels and
visit and work. aircraft and the more demanding aspirations
of passengers for an improved customer
Government s Future Economy Strategy (May experience when waiting at, or travelling
2022) notes its vision to be a consistently through, the ports.
high-performing, environmentally sustainable
and technologically advanced small island Significant capital investment is required
economy by 2040 and references five in order to renew or upgrade port-related
missions for Jersey s economy by 2040 to infrastructure and to support the resilience of
achieve this. the Island s lifeline services and supply chain,
as well as ensuring the future sustainability
The Harbour and the Airport play a critical role of port-related industries and services. To
in acting as enablers for our future economic achieve this, careful consideration must
prosperity and in achieving the targets of the be given to the principles concerning the
Carbon Neutral Roadmap. facilitation and recovery of capital investment
requirement to support such investment.
Policy position
Generational investment in the
Harbour and Airport are essential to Jersey s future economic prosperity.
Sustainability should be
embedded into every aspect of the development of the harbour and airport infrastructure.
Infrastructure investment should
seek to build resilience, capacity, flexibility and efficiency whilst presenting a memorable first and last impression to Island visitors and delivering a heightened customer experience.
Investment should support
innovation and sectoral growth, whether in existing or new marine and aviation industries.
Recognising the constraints of the
sector, investment should help encourage competition within those elements of the freight sector that also form part of the Ports Sector.
Government supports Ports of
Jersey s proposed redevelopment of Elizabeth Harbour, as part of the wider Harbour Master Plan, and is supportive of the Airport Master Plan.
ARTIST S IMPRESSION
Policy Framework for the Ports Sector
STRATEGIC PRIORITY 6:
Development of harbour and airport estates
We will support the development of the Harbour and Airport estates, creating opportunities for economic development, enhancing the public realm and supporting wider Government priorities in the visitor and blue economies.
Background Globally, the real estate surrounding Harbours
and Airports generates significant footfall,
The Harbour and Airport and their immediate providing the opportunity to undertake surrounds provide the first and last wider economic and public realm investment impressions for visitors to the Island. They projects.
also act as a catalyst for economic activity,
both for companies operating in the maritime Issues
and aviation supply chains, as well as creating
development opportunities. The commercial development of the Harbour
and Airport estates are a vital element of Ports Government supports the development of of Jersey s proposals and ability to invest in
the Harbour and Airport estates, to create the critical Harbour and Airport infrastructure, wider community and economic benefits, as without requiring any Government financial well as enabling investment in critical ports support.
infrastructure without taxpayer support.
The integrated development of the critical Alongside the core operational elements of Harbour and Airport infrastructure with the Jersey s harbour and airport sit a portfolio of commercial and cultural development of the assets. At the harbour, these include La Folie, wider estates is a major opportunity for the New North Quay, the Steam Clock, La Collette, Island.
Victoria Pier and Albert Pier. At the airport,
these include the airport terminal, car parks, The transformation of the Harbour estate, hangars, the cargo centre, the Aero Club and in the heart of St Helier, will define the
land adjacent to the airport. harbourfront for generations to come. Similarly,
the development of the Airport estate can act Development, whether of the harbour estate as a catalyst for economic development.
or at the airport, provides an opportunity to
support the growth of existing Ports Sector The availability of developable land in Jersey businesses and encourage new participants is limited. It is therefore incumbent on Ports
to the sector. Much of the developing blue of Jersey to maximise the utilisation of space economy and those businesses ancillary to across the Harbour and Airport estates.
the airport are themselves highly productive Their development should be undertaken businesses. They play an important role as commercially (to finance the required
part of the Ports Sector ecosystem to deliver infrastructure investment) but should also economic development and attract new support wider Island priorities, including:
businesses to Jersey.
28
Policy Framework for the Ports Sector
Providing additional housing. Ports of Jersey has undertaken extensive
Harbour and Airport master-planning
Developing visitor accommodation. processes to identify the development
Creating facilities to support the growth of opportunities.
the blue economy. Ports of Jersey was established with an
Delivering public realm that supports the independent board with the knowledge, Island identity. experience and mandate required to
undertake both the investment in critical
Integrating cultural, leisure and commercial infrastructure with the wider development
space to create a destination for tourists and of the Harbour and Airport estates, whilst Islanders. ensuring the continuity of operations.
Transforming the Harbour Estate to bring the Collaboration between all key stakeholders,
Harbour and St Helier closer together. involved in the development of the Harbour Complementing developments projects and Airport, is essential to ensure the
taking place adjacent to the Harbour and development opportunities are expedited.
Airport, such as the Waterfront development.
Policy position
Government supports the redevelopment of the Harbour and Airport estates.
Ports of Jersey will lead the development of the Harbour and Airport estates, which
is essential to their ability to deliver investment in critical operational infrastructure without the need for taxpayer support.
Development should seek to:
- Support the sustainable development of the wider Ports Sector.
- Contribute to reducing the Islands housing shortage.
- Incorporate opportunities for visitor accommodation.
- Protect historic and cultural characteristics, integrated with commercial and leisure opportunities.
- Deliver transformational public realm whilst improving public accessibility to town.
Issues
STRATEGIC PRIORITY 7: Significant investment is required in the
critical Harbour and Airport infrastructure. Economic regulation operationally resilient and able to meet the
This infrastructure must be fit for purpose, and governance that rely on the operation of the infrastructure
foreseeable requirements of the market and
the users it serves. In turn this allows operators
and facilities to have confidence in their own We will maintain a regulatory framework for the Ports investment decisions.
Sector that reflects international best practise, with Regulation plays a critical role in determining economic regulation that protects consumers and investment. The ability of a regulated entity to
facilitates critical investment. raise debt, particularly for significant capital expenditure projects, is directly influenced by
its projected cash flows. Appropriate balance is required when applying regulatory pricing
Background Given the port operator s dominant market regimes, to protect the interests of consumers
position in the provision of regulated services, as well as ensuring the required investment in The three pillars to the Ports Sector are it remains appropriate for the JCRA to critical infrastructure at the harbour and airport
Ports of Jersey s provision and operation implement regulatory oversight and control is undertaken.
of critical infrastructure at the Harbour and measures.
Airport, airline and ferry services to and from Increasingly, ports and airports around the
the Island, and on-island freight logistics Airlines are not subject to economic regulation world are using tariff mechanisms to support operations. by the JCRA and there is no current need or the transition to cleaner technologies, to
call for regulatory intervention in respect to the positively influence the environmental impact Ports of Jersey was established under the Air provision of airline services. of services provided by their customers.
and Sea P2015. This law provides that an operator of orts (Incorporation) (Jersey) Law The ability of Ports of Jersey to amend its
port operations requires a licence issued by Roperated under the terms of an operating oRo freight and car ferry services are tariff structures to support environmental
the JCRA as the economic regulator of the agreement and the issuance of ramp sustainability should be enabled by the
sector. Ports of Jersey is the sole licensed permits. This arrangement provides de-facto regulator.
port operator. exclusivity for the freight and car passenger Recognising the breadth of Ports of Jersey s
ferry operator. To ensure the operator cannot activities, price regulation should focus on JCRA s primary duty under this law is to best abuse this exclusive position, the operating those areas in which Ports of Jersey has
protect and further the interests of users agreement imposes various service and significant market power.
of port operations by, where appropriate, reporting obligations. Such arrangements
promoting competition in the provision of being in-lieu of direct regulation by the JCRA. Government will encourage the JCRA to use port operations. quality of service and waiting list measures
On-island freight services are currently in the regulation of Ports of Jersey.
In addition, the JCRA is required to ensure not regulated. However, they have been
provision is made to satisfy all reasonable subject to a recent market study, the JCRA s Government considers there to be effective demands, both current and prospective, for Freight Logistics Market Study (2022), that competition in airline services. This follows the port operations and services, and that they reviewed factors that may affect competition move to Government s open skies policy noted are provided efficiently and effectively. and resilience in the supply of services in Strategic Priority 3.
The JCRA implements regulatory oversight and accordingly set out recommendations As noted in Strategic Priority 4, the current and control mechanisms by attaching (discussed under Strategic Priority 4). ferry services operating agreement ends in
tailored conditions under the licence issued March 2025. Future contractual arrangements to the port operator. Such conditions are must ensure appropriate sharing of risk and
set periodically following a market review reward as well as open-book reporting. In the and consultation conducted by the JCRA absence of such arrangements Government (currently in progress). would need to consider imposing regulation.
Government considers that effective competition in the freight logistics market, or regulation in the absence of competition, is vital in ensuring economic sustainability.
Policy position
Economic regulation of the Ports
Sector should balance protecting the interests of consumers with
the timely implementation of the significant capital investment in critical infrastructure required at the Airport and Harbour.
Economic regulation should allow
Ports of Jersey the flexibility to amend tariffs to influence the environmental sustainability of ferry and aviation services.
Government will seek to ensure
that the arrangements for the future provision of ferry services, following the end of the current operating agreement in March 2025, are
made on an open book basis and
that permitted returns reflect a fair sharing of risk and reward.
Government will also ensure
that legislation is compatible and consistent with policy guidance it puts forward.
Government supports the
recommendations of the JCRA s Freight Logistics Market Study (2022), should these measures fail to deliver effective competition, Government will consider regulation of the sector.
Economic regulation should
reflect international best practice, combining the use of quality of service and key performance measures with the implementation of price control measures.
STRATEGIC PRIORITY 8: Policy position
Public Service Obligations Government eObligations, in accordance with its PSO agreements or as specifically agreed with the xpects that Ports of Jersey will at all times discharge its Public Service
responsible Minister.
We will monitor and review the Public Service Obligations of PSO agreements should be periodically reviewed and updated based on best Ports of Jersey to ensure they continue to be discharged in practice and learnings from the practical application of existing agreements. accordance with best practice.
Background
When Ports of Jersey was incorporated, Government transferred various duties and functions to the newly incorporated entity. These duties and functions, critical to our Island but outside of the normal operations of a commercial harbour and airport, had previously been undertaken within the Jersey Harbours and Jersey Airport functions within Government.
These specific duties and functions are referred to as Public Service Obligations (PSOs) under the Air and Sea Ports (Incorporation) (Jersey) Law 2015. They are:
- Co-ordinating, or providing resources for co-ordinating, maritime search and rescue within the Jersey Search and Rescue Region;
- Maintenance of aids to navigation in territorial waters;
- Acting as custodian of Jersey harbours;
- Enforcement of shipping legislation in territorial waters;
- Carrying out certain port State control functions; and
- Management of the Channel Islands Control Area.
Ports of Jersey has been delivering these PSOs, contributing to the sustainability of our economy, our environment and the social wellbeing of Islanders.
Ports of Jersey should continuously seek improvements in service provision, utilising expert advice, guidance and learning wherever it is considered beneficial.
Issues
The 2015 incorporation law provides for the shared expectations of Government and Ports of Jersey regarding the discharging
of each of the above PSOs to be defined in formal agreements between Ports of Jersey and either the Minister for Sustainable Economic Development or, in the case
of custodianship of Jersey Harbours, the Minister for Treasury and Resources.
An agreement between the then Minister for Sustainable Economic Development and Ports of Jersey covering PSOs (a), (b), (d) and (e) was promptly reached following incorporation in 2015.
Agreements covering (c) and (f) are yet to
be documented, however, they are covered practically through lease agreements and ongoing communication with the Minister for External Relations, respectively.
To ensure the continued delivery of these PSO obligations, and that they match the expectations of Islanders, it is appropriate that PSO agreements are periodically review and updated, reflecting our learnings from current service provision and best practices from around the world.
36