Working and living in an archipelago off the North coast of Scotland in winter can be difficult at times but it’s also an opportunity to take stock and appraise the issues as they come.
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It is safe to say that this year has seen a wide range of challenges to the port sector in Scotland. Orkney Harbours, which is owned by Orkney Islands Council, has seen these challenges across all sectors.
But the operator of 29 piers and harbours and guardian of the largest natural harbour in Europe has strong plans to ensure the maintenance of the existing infrastructure as well as developing for the future.
Paul Olvhoj, business development manager at Orkney Harbours, said: “We have to ensure that the existing facilities we have are brought forward to link into market opportunities. The national asset of Scapa Flow is once again vital to the development of the nation’s energy needs.”
Major developments for Orkney Future Ports in 2025
The Orkney Future Ports scope of projects includes plans to develop the sites at Coplands Dock in Stromness, Hatston Pier in Kirkwall and Lyness on the island of Hoy. The extension of Hatston Pier will provide a 685m long berth at a 10 metre water depth and 7.5 hectares of reclaimed land that provides a multi-user facility able to handle cruise, ferry and energy vessels separately.
At Lyness the existing ex Royal Navy base has two quays totaling 310m and 20 hectares of available land behind the quays. Coplands Dock is ideal for smaller vessels using the Western entrance of Scapa Flow and together they link with the proposed brand-new development at Scapa Deep Water Quay to provide a potential hub for energy in Orkney that can utilise Scapa Flow.
Both the major projects are still in planning with decisions expected in early 2025 but even with successful conclusions in these processes there are still hurdles to overcome to allow the council to agree to move forward. The major one is the investment, and strong government support is vital to ensure the success of the projects and de-risk them for the port owners.
Paul said: “The huge potential pipeline of projects from offshore wind is an opportunity for ports but the timelines for decisions from developers put pressure on ports to finance large projects without guarantee of contracts. This is a big ask for the smallest council in Scotland to make.”
Cruise figures hit record high
Away from the developments, it has been another record year for cruise calling into Orkney with 223 vessels visiting with over 210,000 passengers. Orkney remains one of the most popular day calls in Northern Europe and provides a range of different locations and destinations for cruise guests. The success has been built over years to continuously improve the facilities and the offer Orkney provides.
Paul continued: “Cruise is a very important port of our work at Orkney Harbours and we are continually striving to improve our offer and ensure that we work with stakeholders and local communities to keep Orkney at the top of cruise lines’ places to visit. However, continued growth cannot be sustained at the levels seen over the past two years and there will be an expected dip in numbers in 2025.”
This pattern could be attributed to the return of cruise to the Baltic region and a saturation of UK destinations in the period of growth. Costs and facilities are primary concerns for lines and ensuring that these fit with the needs of both ports and the market is important. Additionally, discussion around potential levies for visitors is a risk for port operators and their clients, and a strong dialogue is needed between the companies to find a solution that is right for each location and right for Scotland. Cruise companies and ports are working hard to bring forward sustainability plans for the sector to reduce emissions and provide leadership in reaching targets.
Diversification key to continued success for Orkney ports in 2025
The oil and gas sector for Orkney is also seeing fluctuations with a decline in numbers of tankers that call into the Flotta Oil Terminal, although there is a steady continuation of the ship-to-ship transfers in Scapa Flow. Orkney also welcomed the FPSO Western Isles in July which is working up to a redeployment in the North Sea. The move is evidence of the excellent anchorage available in Orkney and shows that the local supply chain is able to take on major local contracts. Diversification is again critical to offset declines in some markets and continue revenues.
So, 2024 has been a year full of challenges, but Orkney Harbours continues to increase revenues and grow in tough commercial markets and financial conditions.
To find out more visit the Orkney Harbours website.
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