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A Harbour Seal photographed at Dun Laoghaire Marina on Dublin Bay, Ireland. Also known as the common seal, is a true seal found along temperate and Arctic marine coastlines of the Northern Hemisphere. The most widely distributed species of pinnipeds, they are found in coastal waters of the northern Atlantic and Pacific oceans, Baltic and North seas. Photo: AfloatA photograph of a Harbour Seal taken at Dun Laoghaire Marina on Dublin Bay, Ireland. Also known as the common seal, this species can be found along temperate and Arctic marine coastlines throughout the Northern Hemisphere. They are the most widely distributed species of pinnipeds and can be found in the coastal waters of the northern Atlantic and Pacific oceans, as well as the Baltic and North Seas. Photo: Afloat

Displaying items by tag: Maritime Finance

#MaritimeFinance - As shipping companies are increasingly being forced to seek alternative sources of finance, is Ireland’s asset leasing hub the solution?

Ireland’s strength as a global hub for asset leasing is examined by tax advisors KPMG and legal firm Dillon Eustace in a recent report commissioned by the Irish Maritime Development Office (IMDO).

The report looks at Ireland’s advantages as a location for maritime commerce and how the rules and regulations which have supported the development of Ireland’s aviation sector translate to the maritime sector.

Recent Government activity to bring attention to the sector, via the annual Ocean Wealth Conference, is gaining momentum as interest in Ireland as a destination for maritime business grows.

Trends in maritime finance

Changing trends in maritime finance have been widely remarked upon in the media, with traditional lenders pulling back and some pulling out all together. An equilibrium has been reached, wherein ‘the new normal’ – those shipping banks who are still providing senior debt – are focused only on Tier One borrowers, leaving a continued void for senior debt provision to Tier Two borrowers.

These shifts in the market have opened demand for new forms of financing and increasingly we have seen private equity leaping to bridge that gap.

Ireland, with its beneficial tax structures and extensive asset finance experience, is well positioned to become the home of the new generation of finance solutions to the shipping industry. Many existing operators in the asset financing sector, previously focussed solely on aviation, have already diversified their asset base to include manufacturing equipment, medical devices, rail stock and are increasingly looking to maritime assets.

While there are notable differences in the nature of the asset class, perhaps most notably the volatility of the value of the asset and its cyclical nature, the beneficial structures and treatment available are unchanged. The Irish Government aims to attract more of this business and facilitate the growth of a thriving maritime finance sector in Ireland.

After a period of initial research of the opportunities, the IMDO commissioned KPMG and Dillon Eustace to collaborate on a report which is available HERE.

The report looks at Ireland’s overall offering for foreign direct investment and how that underpins the future development of maritime commerce in Ireland. It also examines the legal and tax conditions which have made Ireland a global leader in aviation financing and how that translates on the maritime side.

It highlights specific business, economic and tax based advantages, such as Ireland’s 12.5% corporation tax rate, supported by a stable and certain tax environment, as well as one of the most beneficial tonnage tax regimes in Europe.

The report also examines some of the success which Ireland has had in other industries, and how Ireland’s readily available skilled labour force, as well as being an English speaking member of the Eurozone and of the EU has helped that growth.

Aviation roots

Ireland has strong historic links with aviation and has established itself as a global hub for the aviation industry; it is the jurisdiction of choice for aviation finance and particularly for aircraft lease securitisation.

During the 1980s, Guinness Peat Aviation (GPA), based in Co Clare, became the world's largest commercial aircraft lessor. “The pool of expertise that emerged from GPA went on to establish Ireland as the world’s leading aviation leasing jurisdiction, with GPA’s legacy directors and staff going on to found what have become some of the biggest aircraft lessors in the world," says Jim Healy, director of shipping tax services with KPMG Ireland. "Indeed most significant transactions in the sector have involved Irish leasing companies. The industry looks set to grow further, with very large orders being placed by Irish lessors.”

Half of the top 50 leasing companies in the world are based in Ireland and more than half of the world’s leased aircraft are managed from here. It is this ready availability of the world’s leading experts in asset financing and securitisation, as well as the support structures in place which are the foundations of Ireland’s ambitions to create a global hub for maritime commerce.

Ireland is a leading issuer location for securitisation, a favoured location for asset ownership and the largest hedge fund domicile in Europe. Nearly €4 trillion assets are currently under administration in Ireland, according to the latest figures released by the Central Bank of Ireland and Irish Funds Industry Association. There are over 6,000 Irish domiciled funds alone and 36,000 finance professionals working in Dublin’s IFSC.

“Ireland has grown to be one of the world’s leading financial services centres,” says Lorcan Tiernan, partner in Dillon Eustace. “Irish professional advisors have been at the cutting edge of the most complex financial structures for many years and bring a broad range of transactional skills to the area of finance. As a group we comfortably navigate the most complex deals and offer innovative solutions across industries and all of these skills can and are being brought to bear in the area of maritime commerce.”

Demand-led developments

The IMDO carried out a programme of engagement in Asia in September, sponsoring the Marine Money conference in Singapore and launching the ‘Ship Finance: Opportunities for the International Shipping Industry’ report at a complementary event.

There was high demand for the event, with over 90 registered delegates and significant interest in the latest developments in the Irish market.

Speakers at this and its sister event in Hong Kong included Standard Chartered’s Nigel Anton, Ardmore Shipping’s Mark Cameron and Conor Warde of Clyde & Co. Both Standard Chartered and Ardmore Shipping have significant operations in Ireland, alongside a variety of maritime names such as d’Amico Shipping, Moore Stephens, the Denholm Group, Liebherr and Peninsula Petroleum.

The event in Singapore was sponsored by Bank of Ireland and CJC Law, both of whom presented. Speaking at the event, the IMDO’s director Liam Lacey outlined some of the measures already taken by government and some of those envisaged to further support and develop the industry, adding that “Ireland is a stable, English speaking, European jurisdiction with ambitious maritime plans, and we are ideally placed to meet growing demands from the Industry for stability and certainty. It is a truly exciting time to be involved in the industry in Ireland."

There is significant Government support and momentum for the development of the maritime sector in Ireland. The Government strategy for the sector is covered in a wider document published in 2012 called Harnessing Our Ocean Wealth (HOOW). A follow-up report released in June of this year details specific projects which will allow Ireland to meet ambitious targets laid out as part of HOOW, including doubling the Sectors’ contribution to GDP by 2030.

Those initiatives in the maritime space include the creation of an ocean yacht racing hub, the construction of an International Shipping Services Centre and specific recommendations to create a responsive regulatory environment and a dedicated body with the responsibility for the development of the entire sector.

What now?

Ireland has one of the most competitive tonnage tax regimes in Europe, a globally leading financial services industry and significant support from the Irish Government to develop the Maritime industry. So the only question for those who have yet to consider doing business in Ireland is 'why?'.

Published in Ports & Shipping

For all you need on the Marine Environment - covering the latest news and updates on marine science and wildlife, weather and climate, power from the sea and Ireland's coastal regions and communities - the place to be is Afloat.ie.

Coastal Notes

The Coastal Notes category covers a broad range of stories, events and developments that have an impact on Ireland's coastal regions and communities, whose lives and livelihoods are directly linked with the sea and Ireland's coastal waters.

Topics covered in Coastal Notes can be as varied as the rare finding of sea-life creatures, an historic shipwreck with secrets to tell, or even a trawler's net caught hauling much more than just fish.

Other angles focusing the attention of Coastal Notes are Ireland's maritime museums, which are of national importance to maintaining access and knowledge of our nautical heritage, and those who harvest the sea using small boats based in harbours where infrastructure and safety pose an issue, plying their trade along the rugged wild western seaboard.

Coastal Notes tells the stories that are arguably as varied as the environment they come from, and which shape people's interaction with the natural world and our relationship with the sea.

Marine Wildlife

One of the greatest memories of any day spent boating around the Irish coast is an encounter with Marine Wildlife. It's a thrill for young and old to witness seabirds, seals, dolphins and whales right there in their own habitat. And as boaters fortunate enough to have experienced it will testify, even spotting a distant dorsal fin can be the highlight of any day afloat. Was that a porpoise? Was it a whale? No matter how brief the glimpse, it's a privilege to share the seas with Irish marine wildlife.

Thanks to our location in the North Atlantic, there appears to be no shortage of marine life to observe. From whales to dolphins, seals, sharks and other ocean animals, the Marine Wildlife category documents the most interesting accounts around our shores. And we're keen to receive your observations, your photos, links and video clips, too!

Also valuable is the unique perspective of all those who go afloat, from coastal sailing to sea angling to inshore kayaking to offshore yacht racing, as what they encounter can be of great importance to organisations such as the Irish Whale and Dolphin Group (IWDG). Thanks to their work we now know we share the seas with dozens of species who also call Ireland home. But as impressive as the list is, the experts believe there are still gaps in our knowledge. Next time you are out on the ocean waves, keep a sharp look out!

Weather

As an island in the North Atlantic, Ireland's fate is decided by Weather more so than many other European countries. When storm-force winds race across the Irish Sea, ferry and shipping services are cut off, disrupting our economy. When swollen waves crash on our shores, communities are flooded and fishermen brace for impact - both to their vessels and to their livelihoods.

Keeping abreast of the weather, therefore, is as important to leisure cruisers and fishing crews alike - for whom a small craft warning can mean the difference between life and death - as it is to the communities lining the coast, where timely weather alerts can help protect homes and lives.

Weather affects us all, and Afloat.ie will keep you informed on the hows and the whys.

Marine Science

Perhaps it's the work of the Irish research vessels RV Celtic Explorer and RV Celtic Voyager out in the Atlantic Ocean that best highlights the essential nature of Marine Science for the future growth of Ireland's emerging 'blue economy'.

From marine research to development and sustainable management, Ireland is developing a strong and well-deserved reputation as an emerging centre of excellence. Whether it's Wavebob ocean energy technology to aquaculture to weather buoys and oil exploration, the Marine Science category documents the work of Irish marine scientists and researchers and how they have secured prominent roles in many European and international marine science bodies.

Power From The Sea

The message from the experts is clear: offshore wind and wave energy is the future. And as Ireland looks towards the potential of the renewable energy sector, generating Power From The Sea will become a greater priority in the State's 'blue growth' strategy.

Developments and activities in existing and planned projects in the pipeline from the wind and wave renewables sector, and those of the energy exploration industry, point to the future of energy requirements for the whole world, not just in Ireland. And that's not to mention the supplementary industries that sea power projects can support in coastal communities.

Irish ports are already in a good position to capitalise on investments in offshore renewable energy services. And Power From The Sea can even be good for marine wildlife if done properly.

Aside from the green sector, our coastal waters also hold a wealth of oil and gas resources that numerous prospectors are hoping to exploit, even if people in coastal and island areas are as yet unsure of the potential benefits or pitfalls for their communities.

Changing Ocean Climate

Our ocean and climate are inextricably linked - the ocean plays a crucial role in the global climate system in a number of ways. These include absorbing excess heat from the atmosphere and absorbing 30 per cent of the carbon dioxide added to the atmosphere by human activity. But our marine ecosystems are coming under increasing pressure due to climate change.

The Marine Institute, with its national and international partners, works to observe and understand how our ocean is changing and analyses, models and projects the impacts of our changing oceans. Advice and forecasting projections of our changing oceans and climate are essential to create effective policies and management decisions to safeguard our ocean.

Dr Paul Connolly, CEO of the Marine Institute, said, “Our ocean is fundamental to life on earth and affects so many facets of our everyday activities. One of the greatest challenges we face as a society is that of our changing climate. The strong international collaborations that the Marine Institute has built up over decades facilitates a shared focusing on our changing ocean climate and developing new and enhanced ways of monitoring it and tracking changes over time.

“Our knowledge and services help us to observe these patterns of change and identify the steps to safeguard our marine ecosystems for future generations.”

The Marine Institute’s annual ocean climate research survey, which has been running since 2004, facilitates long term monitoring of the deep water environment to the west of Ireland. This repeat survey, which takes place on board RV Celtic Explorer, enables scientists to establish baseline oceanic conditions in Irish waters that can be used as a benchmark for future changes.

Scientists collect data on temperature, salinity, water currents, oxygen and carbon dioxide in the Atlantic Ocean. This high quality oceanographic data contributes to the Atlantic Ocean Observing System. Physical oceanographic data from the survey is submitted to the International Council for the Exploration of the Seas (ICES) and, in addition, the survey contributes to national research such as the VOCAB ocean acidification and biogeochemistry project, the ‘Clean Atlantic’ project on marine litter and the A4 marine climate change project.

Dr Caroline Cusack, who co-ordinates scientific activities on board the RV Celtic Explorer for the annual survey, said, “The generation of long-term series to monitor ocean climate is vital to allow us understand the likely impact of future changes in ocean climate on ecosystems and other marine resources.”

Other activities during the survey in 2019 included the deployment of oceanographic gliders, two Argo floats (Ireland’s contribution to EuroArgo) and four surface drifters (Interreg Atlantic Area Clean Atlantic project). The new Argo floats have the capacity to measure dissolved ocean and biogeochemical parameters from the ocean surface down to a depth of 2,000 metres continuously for up to four years, providing important information as to the health of our oceans.

During the 2019 survey, the RV Celtic Explorer retrieved a string of oceanographic sensors from the deep ocean at an adjacent subsurface moored station and deployed a replacement M6 weather buoy, as part of the Irish Marine Data Buoy Observation Network (IMDBON).

Funded by the Department of Agriculture, Food and the Marine, the IMDBON is managed by the Marine Institute in collaboration with Met Éireann and is designed to improve weather forecasts and safety at sea around Ireland. The data buoys have instruments which collect weather and ocean data including wind speed and direction, pressure, air and sea surface temperature and wave statistics. This data provides vital information for weather forecasts, shipping bulletins, gale and swell warnings as well as data for general public information and research.

“It is only in the last 20 years, meteorologists and climatologists have really began to understood the pivotal role the ocean plays in determining our climate and weather,” said Evelyn Cusack, Head of Forecasting at Met Éireann. “The real-time information provided by the Irish data buoy network is particularly important for our mariners and rescue services. The M6 data buoy in the Atlantic provides vital information on swell waves generated by Atlantic storms. Even though the weather and winds may be calm around our shores, there could be some very high swells coming in from Atlantic storms.”