Liverpool City Council to transfer cruise terminal ownership to private sector due to financial losses.
- The terminal was part of a 2006 regeneration initiative, initially funded through European and regional resources.
- Despite growth in cruise calls and revenues, spiralling costs have made the council’s operation unviable.
- The Mersey Docks and Harbour Company may take over operations to enhance terminal efficiencies.
- No job losses expected; staff to be reassigned within council operations.
Liverpool City Council has announced its intention to transfer the ownership of the city’s cruise terminal to a private entity. This decision has been driven by the ongoing financial strains that have rendered the current operational model untenable. In essence, the council is seeking a resolution to the losses incurred, which range between £300,000 and £700,000 annually, by entrusting the facility to an organisation with potentially greater resource capacity.
Established in 2006 as a beacon of the city’s broader regeneration efforts, the Liverpool Cruise Liner Berth was funded through a collaborative initiative involving the European Regional Development Fund as well as the Northwest Development Agency. This strategic investment aimed to rejuvenate Liverpool’s maritime prominence, and it successfully escalated cruise activity from a meagre three calls in 2007 to a substantial 114 calls by 2023, with the terminal itself valued at approximately £20 million.
Notwithstanding these milestones and the ostensibly ‘healthy’ income drawn from berthing fees, the council has highlighted that escalating operational costs have nullified the financial gains. This fiscal imbalance has compelled the council to consider a transfer of control, which is subject to approval in an imminent cabinet meeting. The prospective takeover by the Mersey Docks and Harbour Company is seen as a move that could fortify the terminal’s business prospects.
Cabinet documents reveal that the council plans to empower the corporate director of city development to negotiate terms with potential operators. This is envisioned to ensure continued port activity with existing cruise lines such as Fred Olsen, Marella, P&O, Princess, and Ambassador, alongside Cunard’s itineraries that include Liverpool as a stopover. It is pertinent to note that despite these operational adjustments, there is confidence within the council that no job losses will ensue as employees can be redeployed elsewhere within its framework.
Interestingly, the decision coincides with the greenlighting of a new cruise terminal in Hull, suggesting a broader trend of maritime infrastructural expansion within the region. This reflects an adaptable approach to evolving economic demands, allowing local governance to reposition itself effectively. The Liverpool City Council’s strategic shift mirrors Hull’s development aspirations, potentially setting a precedent for similar actions in other regions.
The transfer of Liverpool’s cruise terminal to the private sector signals a pragmatic approach to resolving financial challenges.
