Monday 24 June 2024
 10.8°C   S Gentle Breeze
Ocean Kinetics - The Engineering Experts

Marine / Sullom Voe tanker fees could rise by 50 per cent

Photo: John Bateson

CHARGES for tankers entering Sullom Voe could rise by around 50 per cent in the next financial year – an increase deemed “extremely high” by users.

The rise is included in Shetland Islands Council’s proposed list of harbour charges for 2023/24.

Other piers and harbours charges are only set to rise by 4.9 per cent.

A report to members of the council’s harbour board, who are meeting next week, says tanker charges will rise by 52 per cent.

This relates to the consolidated charge – which including shipping, mooring, pilotage, boarding and landing.

This works out at about an additional 15p per barrel of crude oil being shipped.

The council report said Sullom Voe users have been consulted on the proposed charges, but they feel the rise is “materially out of step with wider inflationary pressures”.

The report explained that the proposed increase relates to “energy inflation and reduced tanker production performance against estimates in recent years.”

It said that other piers and harbours users understood the reasoning behind the increase in charges.

The 2023/24 harbour budget includes an anticipated increase of £5.33 million in shipping income for tankers entering the Port of Sullom Voe, which the council operates.

There is also a planned reduction in maintenance budgets to an essential maintenance level.

The proposed budget also includes a reduction in staff numbers of 3.75 full-time equivalents.

Also included is an expected £335,000 increase in spend on fuel and energy costs.

The budget anticipates a surplus of £16.6 million on harbour activity through 2023/24 and rental income from the Shetland Gas Plant of £1.6 million.

It is planned for the full surplus to be used on the council’s general fund to meet the increased cost of service provision.

This contribution is £11.5 million higher than the £6.7 million outlined in the council’s medium term financial outlook for 2022 to 2027, due to inflationary growth.

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.

 

Newsletters

Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.