Sullom Voe tanker fees could rise by 50 per cent

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.