Investment worth a total of £49m for Stornoway Port

The Leader of Comhairle nan Eilean Siar, Cllr Roddie MacKay, has hailed the announcement by the Scottish Government of a £49m package of support for the development of a new deep water terminal for Stornoway Harbour as a “very good news story” for the Western Isles.
Artists impression of new deep water port in StornowayArtists impression of new deep water port in Stornoway
Artists impression of new deep water port in Stornoway

The development is part of Stornoway Port Authority’s (SPA) 20-year master-plan. 

And speaking this morning, council leader Roddie Mackay said: “This investment is the first step in a comprehensive vision for the redevelopment of Stornoway Port and ancillary facilities.

“The project will create new marine-related opportunities, not only for Stornoway but the whole of the Outer Hebrides. We believe this investment will make Stornoway one of the premier ports in the west of Scotland.

“Our ambition is that it will be a driver and catalyst for a series of new activities such as the creation of a hydrogen-driven energy hub and as a future base for renewable energy deployments west of the Hebrides.

“The Comhairle’s significant investment will not only secure the present development project but will also facilitate a route to further value-added development opportunity.”

In a statement, the Scottish Government said that the development will see more than 200 jobs created.

The project includes a facility for berthing cruise ships up to 360 metres in length, a new deep water berth to cater for larger cargo vessels, and a freight ferry berth; berthing and unloading facilities and development land for a range of uses.

Rural Economy Secretary Fergus Ewing confirmed that the £49 million investment was coming from a number of partners, including £10m from HIE, a £37.5m ‘financing facility’ from Comhairle nan Eilean Siar, £1.5m from Stornoway Port Authority’s cash reserves and assistance from the Scottish Government through its ‘Growth Accelerator mechanism’ which will release revenue payments to Stornoway Port Authority based on ‘the achievement of a series of outcomes over the life of the project’.

Mr Ewing said: “This transformational project, which will put Stornoway in pole position to take advantage of emerging technologies such as hydrogen,  is the culmination of dedicated partnership working to create a development of real value to communities.

“This is a great example of the blue economy in action, as it is creating infrastructure in our islands which can benefit a range of marine industries and coastal communities, helping Scotland build back better from the pandemic and make the transition to net-zero through the creation of a stronger, more resilient, sustainable economy.”

Alistair Dodds, chair of HIE, said: “The benefits of this development will be far reaching. It will strengthen transport links between the islands and the mainland. It will significantly enhance the islands’ potential in terms of the developing marine economy. This in turn will help attract more people and business to the islands.

“This in turn will help attract more people and business to the islands, stimulate wider economic activity and strengthen community resilience.

“We very much welcome these plans by the Stornoway Port Authority and look forward to continuing to work with them as they implement the masterplan.”

Murdo Murray, Chairman, Stornoway Port Authority said: “This significant investment is tremendous news for Stornoway, the Outer Hebrides and Scotland. We believe it will bring massive new revenue streams to the Port, create new employment in the area for decades to come.”

Western Isles MSP, Alasdair Allan remarked: “I first met with the Cabinet Secretary about the Port Authority’s plans back in 2017, and he - and the Scottish Government - quickly appreciated how important these proposals could be.

“I would like to pay tribute to the tremendous amount of work the Port Authority have put into this development, as well as the work of other partners such as HIE, the Comhairle and the Scottish Government.

“This project will mean that Stornoway is well-placed to take advantage of a diverse range of economic opportunities and bring in much-needed jobs. I look forward to seeing the terminal take shape over the course of next year.”