Wednesday 21 December 2016

The Scottish Government has given the green light to a major £350 million ($433 million) expansion project at Aberdeen Harbour that will help accommodate larger vessels calling at the UK oil capital.

Under the three-year plan, Aberdeen Harbour will expand its facilities into Nigg Bay, to the south of the existing harbour.

Dragados of Spain will handle the project’s construction, with work scheduled to begin on site in early 2017.

The 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.

It is estimated that the development will generate an additional £1 billion per year to the economy by 2035, and will create an additional 7000 equivalent jobs, according to a Scottish Enterprise study.

Funding arrangements for the project incorporated commercial borrowing from the European Investment Bank, which is the European Union’s (EU) bank, and funding from the Aberdeen City & Region Deal.

“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”, chief executive of Aberdeen Harbour Board, Colin Parker said.

“Following a detailed engagement process, Aberdeen Harbour, in partnership with Dragados UK will develop facilities that will represent a step change in the marine support capabilities in Scotland.”

“The expansion will afford existing customers the opportunity to diversify and expand their interests, whilst attracting new customers and markets to the port, including up-scaled decommissioning activity, a more significant share of the available cruise vessel fleet and larger more cost-effective commercial vessels,” Parker said.

Scotland’s Minister for Transport and the Islands, Humza Yousaf, added: “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,” Yousaf said.

The development is scheduled to be completed by 2020.