NICOLA Sturgeon announced an £11.7 million Scottish Government funding boost for the Aberdeen harbour development during a visit to the city yesterday.
Scottish Enterprise, Scotland’s main economic development agency, contributed £350m to the project, which plans to extend the 900-year-old harbour into Nigg Bay.
As many as 2300 jobs could be created in the period up to 2026, government officials have revealed.
Scheduled to finish in 2020, the development will improve the site’s facilities, opening up “significant opportunities” in the oil industry, renewables market and tourism trade. As well as benefitting the city’s energy infrastructure, it is hoped that the project will help the city capitalise on the growing number of cruise ships visiting Scotland’s north-east.
Speaking during her visit, Sturgeon said: “Aberdeen Harbour is Scotland’s main oil and gas port and one of Europe’s leading marine support centres for offshore energy.”
“This funding will open up significant opportunities to diversify and exploit the rapid growth in cruise tourism and the renewables markets in Scotland. We are already seeing Scottish-based firms seizing decommissioning opportunities, and we are committed to supporting Scottish industry to win further valuable contracts. That’s why we developed a decommissioning plan last year, and have since launched the £5m Decommissioning Challenge Fund.”
Aside Scottish Enterprise funding, aid is to be provided by both European Investment Bank and Aberdeen City and Aberdeenshire councils. A £175m loan from the former and £11m from the latter, as part of the area’s city regional deal.
The project was arranged by the Aberdeen Harbour Board, in partnership with Dragados UK, a main contractor.
They aim to develop facilities over the next three years that will improve marine support capabilities in Scotland while upgrading the port’s ability to accommodate visits by larger vessels.
New facilities will include 1400 metres of new quay, with a water depth of up to 10.5 metres and will create an additional 125,000 square metres of lay-down area.
An independent study commissioned by Scottish Enterprise last year estimated that the development will generate £1 billion per annum to the economy by 2035, creating a further 7000 equivalent jobs. Scottish Enterprise’s Maggie McGinlay believes the harbour expansion project is “strategically important to the growth of Scotland’s economy”.
He said: “A recent impact assessment study confirms the project will not only help sustain growth in the oil and gas sector, but will also help to maximise opportunities from the growing cruise tourism and renewables sectors”.
Harbour developers envisage the project allowing existing customers to expand their business interests, while simultaneously helping to attract new customers and markets to the port – including a more substantial share of cruise vessels traffic and larger commercial vessels.
Chief executive of Aberdeen Harbour, Colin Parker, said the funding from Scottish Enterprise is “immensely significant” as it “further demonstrates recognition of this strategic project as one of national and international importance”.
“The facilities developed will transform the port’s ability to accommodate the trend for larger vessels we are witnessing across a whole range of industries, thereby encouraging commercial diversification and future-proofing the port’s ability to support large-scale marine operations,” he added.
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