The Press and Journal (Aberdeen and Aberdeenshire)
Making historic harbour a fit one for 21st Century
An ancient city landmark is ready to move into a new, promising era despite its latest challenges, says Keith Findlay
Aberdeen harbour has remained fully operational throughout the Covid-19 crisis. But construction work on the port’s £350 million-plus expansion ground to a halt as Scotland went into lockdown, while the ongoing impact of the global pandemic is eating a very large hole into revenue.
Last month bosses at the Granite City seaport suffered a further blow when the main contractor for the expansion project was forced to withdraw, leaving nearly one-third of the work undone.
However, new contracts are being awarded to fill the void and Aberdeen Harbour Board (AHB) is keen to push on with the development as quickly as possible.
The UK’s oldest existing business has survived more than a few crises affecting its home city, including ransackings, bubonic plague and two world wars, in a history spanning nearly 900 years.
AHB chief executive Michelle Handforth and her management team have been busy in recent months making sure the port comes through its latest test of resilience with a similar triumph over adversity.
Ms Handforth said: “Through the valiant and professional efforts of our employees, stakeholders and customers, the port has remained fully operational throughout the Covid-19 emergency.
“The pandemic has impacted almost every sphere of our lives and no-one remains untouched by the consequences of the lockdown arrangements necessary to safeguard our health.
“We have experienced a significant reduction in our revenue as a result of ferry, cruise and oil and gas operators decreasing activity, as well as the wider impact of very low oil prices.”
Dragados UK started work on the expansion in April 2017 after six years of consultation and lobbying by AHB among a wide range of stakeholders.
But the Spanish-owned contractor is no longer involved, with AHB confirming on June 9 the contract with its lead contractor would formally end less than a week later.
The works – which will allow more and larger vessels to dock in the city – had already been hit by delays which forced bosses to cancel visits from 11 cruise ships, before the Covid-19 pandemic broke out.
A procurement process for contracts required to complete the final 30% of the project was launched and earlier this month AHB said it had awarded a £1.6m deal to Northern Irelandbased marine civil engineering firm Ashleigh Contracts for work on the north breakwater of the port’s new south harbour.
Ms Handforth said: “It is essential that any continued downturn in activity and revenue should not threaten the south harbour expansion project.
“The new facilities, in addition to the existing harbour, provide a scale of marine infrastructure of strategic importance not just for the north-east but for the whole of Scotland.
“We are engaging with local, Scottish and UK government to seek their support should the ongoing financial impact of Covid-19 further adversely impact our revenue over the coming months.”
AHB’s boss said pandemic lockdown requirements and the disruption they caused for construction work on the south harbour played a “key role” in Dragados UK leaving the project.
It happened after a joint decision by the harbour board and the company, she stressed, adding: “The project team and all of their colleagues have not only displayed undaunted determination following this decision, but their ability to regroup and reorganise by developing a comprehensive strategy to deliver
completion has been remarkable. I was thrilled to announce the first contract award of the new phase of construction a fortnight ago and procurement for the remaining works is under way, with further announcements to follow.
“This positive attitude to building our way out of adversity can be felt across our organisation.
“Our team have just rolled out the new look and feel of Aberdeen Harbour Board in the digital environment.
“The acceleration of the use of technology has been a key factor in the creation of a contemporary digital experience for our customers and stakeholders.
“Although our purpose as a trust port – to create prosperity for generations – remains unchanged, our new identity reflects our changing outlook and aspirations, encapsulating our creative and collaborative approach to business.
“The essence of our brand embodies our core values of being dynamic, professional and respectful, while reflecting the strategic enablers that we offer to the business community – quality, innovation and sustainability.”
Ms Handforth said AHB’s “philosophy and commitment” to improving customer experience digitally and operationally symbolised not only its confidence in future prospects for the harbour, but “also reflects our unshakeable belief in what we are creating”.
She added: “Aberdeen harbour is a cornerstone of the region’s aspiration to becoming a global integrated energy cluster, embracing the shift to energy transition and creating future infrastructure that maximises renewable energy output.
“A key element of this vision is the establishment of an energy transition zone in the area immediately adjacent to our south harbour expansion.
“The window of opportunity to make this vision a reality, however, is relatively short and so momentum to achieve this goal must be maintained.
“We want to be the greenest port in the UK, while playing a leading role in the further development of the national maritime economy and supporting the evolution of international shipping and logistics in the decades to come.
“All of this is set against a backdrop of opportunity as international trade resets itself in a post-Brexit landscape and new global shipping routes open up. Layer on the commercial opportunities that could be inspired by a potential freeport application and it is clear the future holds great potential as our business opens to a world of possibilities.”
The work to expand the harbour, which was first established as a business in 1136 by King David I of Scotland, into Nigg Bay is expected to help existing port users diversify.
It includes new breakwaters, access road improvements, parking, paths, lighting, signage and a visitor centre.
Port bosses sanctioned the ambitious infrastructure scheme, which was originally due for completion this summer, in December 2016.
An independent study commissioned by economic development quango Scottish Enterprise estimated the project would generate an additional £1 billion per annum to the country’s economy by 2035, while also creating an additional 7,000 full-time equivalent jobs. Funding has included a £200m loan from the European Investment Bank, plus £36m from the Aberdeen City and Region Deal and councils for improving nearby roads.