Aberdeen is set for a £350million investment bonanza after the city’s harbour board decided to press ahead with its expansion into Nigg Bay.
Aberdeen Harbour Board (AHB) said it was embarking on a “major new chapter” in its 900-year history after it sanctioned the investment at Nigg, just south of the existing harbour, at a board meeting yesterday.
AHB chairman Alistair Mackenzie revealed the outcome of the decision at the board’s annual Christmas stakeholder lunch in Aberdeen yesterday.
The agreement will be formalised today at a signing ceremony with its preferred bidder, infrastructure development specialist Dragados. The firm will commence construction on site in early 2017 with the new harbour, which will offer 4,600 feet of new quayside, due to be complete in 2020.
Colin Parker, chief executive of AHB, said: “We are delighted that, after six years of detailed planning and extensive consultation with our many stakeholders and the regulatory authorities, we are now in a position to approve commencement of construction.
“Following a detailed engagement process, Aberdeen Harbour Board, in partnership with Dragados UK, a main contractor, will develop facilities over the next three years that will represent a step change in the marine support capabilities in Scotland.
“These will transform the port’s ability to accommodate the trend for larger vessels we are witnessing across a whole range of industries.”
Mr Mackenzie said: “Aberdeen Harbour has been in existence for almost 900 years. Its longevity can be attributed to its ability to adapt to changing trading requirements and being forward-thinking in delivering new and improved facilities to support its customers, while at the same time attracting new business.
“This major new chapter in the port’s history continues this approach and underpins the Trust Port ethos of viewing future generations as key stakeholders.
“We believe that the infrastructure developed in Nigg Bay will encourage and support the continued prosperity of the city and region that the harbour serves and make a significant national economic contribution”.
The development was welcomed by transport minister Humza Yousaf, who said: “This is excellent news for Aberdeen and the Scottish maritime industry, as the signing of the construction contract means this nationally significant project can now get underway in earnest.
“The significant investment will bring jobs and business to Aberdeen, supporting the local and national economy. The historic harbour will be transformed to accommodate larger vessels, opening up potential new revenue streams and offering customers world-class marine support facilities.
“These are exciting times for Aberdeen Harbour.”
An independent study, commissioned by Scottish Enterprise, estimates that the development will generate an additional £1billion per annum to the economy by 2035, and will create an additional 7,000 equivalent jobs.
Funding arrangements for the project incorporated a £200million loan from the European Investment Bank (EIB), while there is also £36million in funding from the Aberdeen City & Region Deal and the local councils, which will be invested in improving roads around the new harbour.
Shadow rural secretary Peter Chapman, who attended the lunch at the Marcliffe Hotel yesterday said: “This is great news for Aberdeen and the whole of the north east and will provide a welcome pre-Christmas boost for the local economy.
“This development is absolutely vital to the future prosperity of the region, with independent estimates predicting a £2billion benefit over a 20 year period.
“If the harbour does not expand, Aberdeen then risks losing out on the multi-million pound decommissioning market when operations in the North Sea are eventually wound down.
“Deeper berths will also open up opportunities for larger cruise ships to dock in Aberdeen, opening up new markets for the tourism sector in the north east.
“Approval of these plans from government would also provide a strong signal of confidence in the long-term future of the local economy after what has been a very tough period.”
Jonathan Taylor, vice president of the EIB added: “Continued investment at Europe’s leading ports is essential to improve infrastructure and to cater for ever-changing shipping needs.
“The European Investment Bank is pleased to support the transformational Nigg Bay development that will significantly increase quayside space, allow deep-water access for larger vessels and ensure Aberdeen’s continued strong contribution to the Scottish economy.”
