Atlantic developments shield Lerwick Harbour from oil price drop

Lerwick Harbour will be shielded from falling oil prices by continuing subsea hydrocarbon developments in the Atlantic, according to the port's chief executive. And Lerwick's importance as a gateway for Shetland’s communities and industries is underlined by an increase in passenger traffic, cargo handled and fish landed in 2014.

"Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future,” said Sandra Laurenson.

Passengers were up 11.8% to 179,352, with numbers on the roll-on/roll-off nightly ferries between the port and Kirkwall and Aberdeen increased by 2% to 135,629 compared with the previous year, despite the two vessels being off-route in sequence for a total five weeks for biennial servicing. A recovery in cruise traffic saw passengers up by 64% to 43,723.

The tonnage of all cargo shipments across the deep-water harbour’s near-4,000 metres of quays increased 2% to 1,192,286 tonnes.

Fish landings totalled 69,973 tonnes, valued at £61.2 million – up 4.7% on volume and down 2.4% on value. The 9,700 tonnes of white fish were valued at £15.8 million, down 12% on volume and 7% on value, with the average price up 5% to £1,637 per tonne. In the pelagic sector, the volume and value of summer herring decreased, and an increase in mackerel was offset by a drop in prices in the autumn.

Lerwick Port Authority Chief Executive, Sandra Laurenson, said: “Overall levels were as predicted and the year ended on forecast, underpinning our financial performance and confidence in the continuing development of the port.

“There are a number of positives going forward. For example, the 52 cruise ships booked this year are ahead of 2013 which was a record year for passengers. Increases in some key fishing quotas should mean higher landings. Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future.”

There were 5,078 vessel arrivals in 2014, down 6% – due mainly to fewer fishing boats, following a busy year in 2013 – with the overall tonnage down 7% to 12.2 million gross tonnes compared to 2013 when shipments of rock to cover an offshore pipeline boosted figures.

A record tonnage of vessels was handled by the Authority’s pilots – 10.5 million gross tonnes, up 3.8%, reflecting the larger vessels using the port, although the number of piloted movements were down 5.6% at 1,418.

Oil price downturn "should not affect Lerwick Harbour activity over next three years"

The Chief Executive of Lerwick Port Authority, Sandra Laurenson, believes that oil-related activity at the harbour will remain largely unaffected by the oil price downturn over the next three years. She has expressed some concern, however, about oil companies' future plans for developing more marginal fields.

Full story from The Shetland Times here: http://www.shetlandtimes.co.uk/2014/12/24/oil-price-slump-should-not-affect-harbour-activity-says-port-chief?utm_medium=twitter&utm_source=twitterfeed

Lerwick Harbour development continues with new jetty construction

The fishing industry will be the main beneficiary of the next major project in the continuing development of Lerwick Harbour where the construction of a large new jetty at Holmsgarth North is due to begin in the third quarter this year.

It will provide deeper berthing and more working area for the fishing fleet, while the outer arm of the L-shaped jetty will create a dock sheltering a planned new white fish market. The outer arm will also be suitable for offshore industry vessels.

Extending to over 630 metres, with ultimately 10 metres of water alongside, the Holmsgarth North project is scheduled for completion, at an estimated cost of £17 million, at end 2015.

It will be followed by the construction of the market, timetabled to start in early 2016 at Mair’s Quay.  The quay was completed last year and has already brought benefits to the fleet.  It will be the berthing area used for net repair and working with fishing gear during the construction of the large new jetty.

Sandra Laurenson, Lerwick Port Authority Chief Executive, said: “The commitment by the Port Authority to develop these next projects for the fishing industry will secure Lerwick as a leading fishing port in the UK and complement the excellent service provision for the fleet available here in Shetland.  The main economic driver for this community is the marine sector and by meeting the requirements for fish landings in the future, that economy can flourish.”

The positive approach by the Port Authority is underlined by increased fish landings. Latest figures, for the first quarter, show a total of 32,577 tonnes landed, valued at £33.14 million, up 40% on tonnage and 57% on value compared to the same period in 2013.  

                                                                                          

Picture: Model and modules at Lerwick Harbour.

A traditional 'Shetland Model' boat at Lerwick with processing modules destined for the Laggan-Tormore gas plant at Sullom Voe in the background. The picture was taken as dusk began to fall.

Way now clear for major Lerwick port expansion

Lerwick Port Authority has been awarded more than £500,000 from the European Regional Development Fund to finance its new developments at the port. It will now be able to award a £1.3 million contract to local firm Tulloch Developments for major expansion at Rova Head.

Full story at Shetland News here: 

http://www.shetnews.co.uk/news/7512-european-boost-for-lerwick-harbour