Cabinet to consider budget realignment for Ramsgate Port projects

At the Cabinet meeting on Thursday 25 July, Councillors will consider a progress report on projects to appoint a port operator for the Port of Ramsgate and the closely linked Levelling Up Fund (LUF) Ramsgate Port Infrastructure project.

The report also outlines proposed changes to the funding of the Ramsgate Port Infrastructure project. This includes a proposal to transfer a total of £4.12million from two other Levelling Up projects in the port area.

The recommendation is that £3.55million, initially allocated to the improvement of fishing facilities and a further £570,000, previously set aside for an overnight accommodation project, are reallocated to the Port Infrastructure project budget, increasing the total budget available from £3.08million to £7.2million.

The Cabinet report also proposes that £4.5million from the increased project budget should be offered to the successful port concession operator, in the form of a grant payment, to contribute to the cost of the works required to make the port ready for concessionary use. The balance of the funding will be retained for works to be delivered by Thanet District Council.

The decision to offer a concession and lease, via an open tender process, to prospective port operators was made in March 2023. Cabinet approved a number of recommendations which supported pursuit of a model that facilitated a multi-use port. It delegated authority to the Chief Executive Officer to develop a procurement framework and process to be followed, to secure a port operator.

Originally, the council had intended to undertake all the necessary enabling works, however the estimated cost of the required works at the port has increased significantly since the award of Levelling Up funding in 2021. This has led to a change in approach which will require the operator to fund and deliver the works to their own specification. The report recommends that the council offer a fixed contribution of £4.5million to the works, in form of a grant from the Ramsgate LUF, alongside a concession agreement and lease of 20 years with an option to extend the agreement for up to a further five years. 

Cllr Rick Everitt, Leader of Thanet District Council commented: “The Port of Ramsgate is a hugely important asset for Thanet and is also a strategically important asset for the country. We have an opportunity to get the port to a position of financial stability and sustainability. It could result in steady income for the council and additional resilience for UK freight logistics. It’s important that we get this right.

“I appreciate the work officers have done thus far to develop the procurement approach as previously agreed. I look forward to discussing the proposals to revise the funding allocations with members of the Cabinet and reaching a consensus on the way forward.”

The full meeting agenda, including the port report and annex can be found on thanet.gov.uk 

The meeting will take place in the Council Chamber, Council Offices, Cecil Street, Margate at 7pm on Thursday 25 July. Members of the public are welcome to attend in person or to view the meeting via the Thanet District Council YouTube channel: youtube.com/@ThanetDistrictCouncil