Docks work to start in three years

Published on Friday 28 August 2009 11:05

THE firm behind the massive regeneration of Leith Docks said today that it expects work to get under way within three years – as it appealed to the Scottish Government to approve initial funding.

Forth Ports has previously admitted that work on its 30-year masterplan was unlikely to get going until the economy starts to pick up.

But chief executive Charles Hammond said today that there are now signs that the economy is starting to stabilise. He now believes that the right time to start developing the planned "urban villages" is likely to be in 2012 – when the tram line is expected to be fully up-and-running.

However, 50million of public funding has to be secured to allow infrastructure works to take place in the next three years before the wider scheme can get up and running.

The city council wants to borrow against future business rates to fund the initial work, which includes creating facilities for a ferry crossing between Fife and the Waterfront, and a waterside walkway behind Ocean Terminal featuring shops and restaurants.

But it needs to win approval from the Scottish Government – which is the recipient of business rates – first.

Mr Hammond said: "This scheme carries with it significant economic benefits in terms of additional GVA (gross value added) for the Scottish economy and additional Scottish jobs." Forth Ports had to write off 7.5m on the value of Ocean Terminal last year, whereas the writedown this year has only been 400,000 – which Mr Hammond believes is a sign of stability.

He said: "Certainly things appear to be not so bad. It is a bit early to tell whether that stability will continue.

"Our regeneration scheme is clearly a long-term scheme so our strategy is to put in place the key things to allow us to take advantage of a recovery.

"It's difficult to say when that will be, although I wouldn't be surprised if it coincides with the completion of the tram in 2012."

Forth Ports' wider plan for the area will see nine urban villages of 16,000 homes, shops, offices, hotels and business space.

The first – next to Ocean Terminal – had been set to get under way in 2008 before the downturn hit.

The city council has said that it is willing to borrow 50m against future business rates to fund infrastructure works to get the scheme going.

Talks are currently at an early stage between the Scottish Government and the city council on how the scheme could work in practice.

Cllr Tom Buchanan, the city's economic development leader, said: "The government has shown itself to be extremely willing to listen to our ideas on innovative financing and, indeed, have reciprocated with some ideas of their own.

"We very much hope it will be possible to work with partners to deliver a pilot project in the Waterfront area."