Stornoway Port Authority has awarded the £49m contract for construction of its new multi-purpose deep water terminal to building and civil engineering firm McLaughlin and Harvey.
Work on the project at the Outer Hebrides’ main port is expected to start in the coming weeks and should be completed before the end of next year.
The terminal aims to provide modern facilities for a variety of sectors, including the energy and transport industries, with its design enabling it to be adapted for a range of future uses.
As well as being able to accommodate offshore wind farm vessels and other energy sector activity, its main berth will be suitable for the largest cruise liners.
Development of the terminal should also increase the capabilities and flexibility of the Arnish fabrication yard at Stornoway.
The Port Authority has worked with the Scottish Government, the Scottish Futures Trust (SFT), Highlands and Islands Enterprise (HIE) and Comhairle Nan Eilean Siar (CnES) - the local authority for the Western Isles - over the past four years.
Deputy First Minister John Swinney said: “The development of the Stornoway Deep Water Terminal will be a game changer for the local economy and for Scotland’s aspirations to grow our renewables and cruise sectors.
“The terminal is a key element of the Islands Growth Deal and will enable cruise traffic and expansion of the offshore renewables supply chain in the wake of the ScotWind offshore wind leasing round, as well as providing infrastructure for a range of other potential activities.”
Stornoway Port Authority chair Murdo Murray said the signing of this contract signalled the imminent start of “an historic project which has the potential to truly transform the economy of the Outer Hebrides” and added: “The award coincides with my retirement after 10 years as a board member and I cannot imagine a more satisfying end to my time at the Port Authority.”
CnES is providing 'significant' loan funding for the port development.
Roddie Mackay, leader of CnES, said: “The project has the potential to drive new economic activity, sectoral innovation and the creation of new jobs in Stornoway, Lewis and across the Islands.
“The Comhairle is delighted to have played a critical role in securing the bulk of funding for the development and looks forward to working with the SPA and other local partners to maximise the economic return for our communities.”
Funding was also secured from regional development agency HIE.
Joanna Peteranna, HIE area manager in the Outer Hebrides, said: “The cruise market is one important aspect, but this investment will also put the port in a strong position to compete for future opportunities in other sectors, including renewable energy fabrication and aquaculture.
“When all these elements are taken together, we believe this has the potential to be a genuinely transformational project for the islands.”
McLaughlin and Harvey is based in Belfast and has offices in Scotland and throughout the UK.
Initial work to develop the new facility will include piling activity, blasting of 750,000 tonnes of rock and dredging.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
