Liverpool Cruise Terminal set to be handed over to private sector

Liverpool’s cruise terminal is expected to be handed over to the private sector.

The city council is set to confirm it will end its operation of the facility at a cabinet meeting next week.

With financial strain engulfing the local authority, its time in charge of the £20m dock and associated infrastructure is to come to an end, subject to senior councillors signing off on proposals when its cabinet meets next week.

Despite what the council describes as a “healthy income” generated from the terminal, “increasingly high uncontrollable costs” mean it will now seek to hand over control to a third party.

Documents released by the city council ahead of the executive meeting said stepping away presents the most palatable option for it to achieve “best value.”

It was confirmed last month Liverpool Council would seek to surrender the lease of the terminal it has operated since 2007.

In December last year, Angie Redhead, the council’s head of assets, admitted it takes a “significant spend” for the city to keep the terminal afloat and as a result, after more than a decade it was a good time for the council to step away from the service, let the private sector take over and “sell high.”

According to cabinet papers, the city council believes surrendering control of the terminal would enable it to avoid “extensive costs” – thought to be around £90m a year – while retraining “existing economic impact for the city of a running cruise ship business, with potential for growth from additional investment, without coming at a cost to the council.”

If cabinet agrees to the plans next week, it will enter in negotiations with Mersey Docks and Harbour Company (MDHC) to complete legal formalities of handing the lease back.

This will include surrendering operations of floating pontoons, linkspan bridges, mooring piles, berthing dolphins, passenger building and other infrastructure such as plant, machinery, equipment and assets. The council said if plans were not approved, it would likely be required to contribute up to £9m for infrastructure repairs.

The cabinet report said discussions have begun with a potential third party operator to take on the site and it is likely a new company would seek to secure an interim delivery provision once an asset transfer is complete.

It said: “The council may be in a position to negotiate an agreement with such an operator to provide a temporary service to operate the cruise liner terminal until the operator is ready to manage this independently. 

“This would need to be on commercial terms acceptable to the council and would have to raise sufficient income to cover the council’s costs of such a service.”

It is not thought jobs at the terminal would be impacted by the transfer of the asset, with Liverpool Council able to redeploy staff across its culture portfolio. The report added: “Retention of their skill set is advantageous to the council.”