Posted on November 30, 2017
By jamie Buchan, The Courier.co.uk
Perth Harbour is facing an uncertain future after a dramatic drop in visiting vessels.
Council chiefs are poised to order a review of the once thriving port after a new study revealed the number of ships calling at the city had plummeted from 300 a decade ago to just 20.
It also emerged a much-needed £870,000 dredging operation could be delayed.
A business plan was put in place last year, showing £954,000 of investment – including dredging – could see the harbour break even by 2021.
However, experts predict a net loss of nearly £240,000 this year and say if the business plan is not revised the harbour is unlikely to recover costs before 2034, if at all.
The harbour was dealt a major blow last year, when its biggest customer, animal feed giant EWOS Ltd, moved its business to Grangemouth.
Harbour company owners have warned that without major investment, it could be lost as an asset for good.
Meanwhile, the port also faces a recruitment crisis after the departure of two key staff members.
Brian Meldrum has been ?appointed interim harbour ?master, supported by Nick Horner, a previous harbour master, on an advisory capacity.
Perth and Kinross Council said recruiting new staff will be challenging because the wages on offer cannot compete with the private sector.
A study by the council’s interim head of economic development Tom Flanagan and investment manager Serge Merone states: “The harbour business plan was approved in May 2016. Since then, a number of assumptions have changed which require us to review its viability.
“The coastal shipping market which was supposed to provide the income to pay back the investment is reducing across the UK and the period of re-payments and prudential borrowing would have to extend significantly an acceptable depreciation period.
“Indeed, the current model may never pay back.”
On Wednesday, councillors will be asked to instruct officials to “explore other commercial opportunities outwith cargo coastal shipping”.
Members of the strategic policy and resources committee will be told shipping market conditions which informed the 2016 business plan had become uncertain because of Brexit and a changing trade environment.
Statistics released by the Department of Transport showed that freight traffic had considerably reduced across the UK in the last 10 years.
A consequence of reduced ship movements is an increase in consolidated cargoes transported by larger ships, leading to a drop in the number of small and medium ships that Perth Harbour can attract.
Studies show that ports in Inverness and Montrose have successfully diversified by establishing stronger links to the windfarm, oil and gas sectors.
A Marine Scotland License application has been submitted for dredging work, but the council is being advised to postpone publication of the tender contract until the license has been issued.
Source: The Courier.co.uk
