News

ABERDEEN HARBOUR'S MULTI-MILLION £INPUT TO ECONOMY
Thousands of port-related jobs in City and Shire

Aberdeen Harbour’s contribution to the economy of North-east Scotland exceeds £400 million in a year, according to a new report, published today (26 June, 2007).

The impact on Aberdeen City and Shire has been calculated at £420 million in 2006, a year of record activity at the port.

The Economic Impact Assessment of Aberdeen Harbour was undertaken by Ove Arup & Partners who were commissioned by Aberdeen Harbour Board. The research included Board activities and those of the port’s tenants, customers and suppliers.

The study estimates that the harbour helps sustain almost 11,000 full-time equivalent jobs – 9,330 in Aberdeen and 1,450 in Aberdeenshire where the share of the financial input is estimated at £50 million.

In line with standard port economic impact study methodology, employment is based on four categories - direct, indirect, catalytic (where port customers or users are in Aberdeen at least partly because of the port) and induced (jobs associated with household expenditure of direct and indirect employees).

With the new study looking at the port’s impact in greater depth, the significantly higher figures are not directly comparable with previous research.

Harbour Board Chief Executive, Colin Parker, said: “The findings reflect the considerable efforts of port users in generating record traffic and the harbour’s major role in the North-east economy and community.

“They add weight not only to the importance the Board give to helping sustain and develop activity by providing the right facilities to meet changing requirements, but also to the benefits of being a Trust Port re-investing all profits in the harbour.”

Annual cargo topped 5 million tonnes for the first time in 2006, with the tonnage of shipping reaching a new high for the eighth year in succession at 23.46 million gross tonnes.

Handling a wide range of shipments across various sectors, including the offshore oil and gas industry, general and specialist cargoes, fish, livestock and passengers, the port had direct connections with around 35 countries last year.

Rita Stephen, Development Manager with Aberdeen City and Shire Economic Forum, said: “Given the scale and spread of the port’s impact, it is particularly encouraging for the future that it continues to expand its infrastructure and capacity to diversify traffic and develop international trade.”

Geoff Runcie, Chief Executive of Aberdeen and Grampian Chamber of Commerce, commented: “The figures re-confirm that the port is a crucial and integrated component in the area’s transport network and underline the absolute need to ensure that access by road and rail are improved to maximise the benefits and realise the further potential of sea transport for the region.

He continued: “The harbour plays a vital role in supporting a number of key industries and sectors beyond oil & gas and therefore its impact goes beyond the directly attributable employment figures noted. In addition, the lifeline ferry services which support the Orkney and Shetland economies are linked directly into Aberdeen Harbour, so this is truly a strategic regional and Scottish resource and facility.”

Port users “very pleased”

The study notes that users of the harbour are generally satisfied with services provided and states: “Most notably users were very pleased with the range of facilities and choice of ways to meet their business objectives and the efforts of the Harbour Board to continue to invest and develop the facilities.”

The proximity of the port to landside storage and support facilities ensure transport cost savings compared to the use of competing North Sea ports.

It notes, however, that “space limitations at the harbour…and road traffic congestion within the City were mentioned as disadvantages.”

Colin Parker stated: “These concerns are well recognised by the Board and initiatives have been undertaken, with others underway, to ensure that the port’s potential is maximised.

“For example, the Board’s current five-year development and maintenance budget of £40 million includes creating 20,000 square metres of surfaced back-up area at Point Law Peninsula and a further 16,000 square metres at Waterloo Quay.”

Ove Arup conclude: “The harbour will have to continue to do what it does best – that is, change with the times and diversify into new potential growth areas, such as serving overseas markets and, without prejudicing its core business, developing new opportunities in the renewable energy sector.”