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Item 3: Orkney Harbours Masterplan Phase 1

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Item 3: Orkney Harbours Masterplan Phase 1 Item: 3 Harbour Authority Sub-committee: 17 March 2020. Orkney Harbours Masterplan Phase 1. Report by Executive Director of Development and Infrastructure. 1. Purpose of Report To consider the draft Orkney Harbours Masterplan Phase 1 and to consider undertaking initial feasibility work. 2. Recommendations The Sub-committee is invited to note: 2.1. That the purpose of the Orkney Harbours Masterplan is to provide a structured framework for the physical development and transformation of Orkney’s harbours over a 20 year period. 2.2. That, due to the wide geographic spread of the Orkney Harbour Authority area, the Orkney Harbours Masterplan has been split into two phases, with Phase 1 being Scapa Flow and Kirkwall/Hatston and Phase 2 being all other ports/harbours. 2.3. That public consultation, including with stakeholders and industry, has been undertaken in respect of the draft Orkney Harbours Masterplan Phase 1, attached as Appendix 1 to this report. 2.4. The responses and feedback from the public consultation on the draft Orkney Harbours Masterplan Phase 1, as detailed in the Consultation Report, attached as Appendix 2 to this report. 2.5. That, should the draft Orkney Harbours Masterplan Phase 1 be approved, initial feasibility studies, including seabed investigations, would be required in order to provide additional information and facilitate the development of detailed cost estimates for potential projects. Page 1. 2.6. The proposal to carry out the feasibility studies during summer and autumn 2020, with the cost, estimated at £150,000, being provided for, in full, within the draft Miscellaneous Piers and Harbours revenue budget for 2020 to 2021. 2.7. That, subject to the draft Orkney Harbours Masterplan Phase 1 being approved and the initial feasibility works being completed, it is proposed that the major projects contained within the Masterplan be progressed through the Capital Project Appraisal process during late 2020/early 2021. It is recommended: 2.8. That the Orkney Harbours Masterplan Phase 1, attached as Appendix 1 to this report, be approved as a strategic plan for the Statutory Harbour Authority. 2.9. That, subject to the draft revenue budget for Miscellaneous Piers and Harbours for financial year 2020 to 2021 being approved, the Executive Director of Development and Infrastructure should arrange for initial feasibility studies to be carried out during summer/early autumn 2020, at a cost not exceeding £150,000. 3. Background 3.1. The majority of transport systems and facilities regard strategic master planning as essential for development and investment in order that they match market changes and maximise economic benefit. In the case of ports and harbours, the general guidance originates from a Department of Transport document, “Guidance on the Preparation of Port Master Plans”, published in December 2008. Guidance on the development of Strategic Outline Cases, to which a masterplan would align, is also available from HM Treasury Greenbook. 3.2. With this in mind, the Harbour Authority carried out a procurement process which, on 7 April 2018, resulted in an award of contract to Fisher Advisory Limited to carry out work necessary to prepare a Harbour Masterplan. 3.3. Due to the wide geographic spread of the Orkney Harbour Authority area, it was decided to split the Harbour Masterplan into two phases: Phase 1 being Scapa Flow and Kirkwall/Hatston; and Phase 2 to be all other ports/harbours. Phase 2 will also align with any results from the ongoing studies being carried out in connection with the internal ferry services in Orkney. This report presents the results and the Page 2. proposed Harbours Masterplan for Phase 1 only. Phase 2 has not started although initial discussions have been undertaken. 3.4. On 19 March 2019, the Harbour Authority Sub-committee recommended that a draft Orkney Harbours Masterplan – Phase 1, together with a Strategic Environmental Assessment, be approved for consultation purposes. 4. Orkney Harbours Masterplan Phase 1 4.1. The fundamental purpose of the masterplan is to provide a structured framework for the physical development and transformation of Orkney’s Harbours over a 20 year period. Development of the masterplan comprises the following elements: • A comprehensive analysis of problems and opportunities informed by market assessment and stakeholder engagement. • Formulation of objectives. • Development of outline requirements. • Proposals to deliver outline requirements and objectives. • Appraisal of options and public consultation. 4.2. The draft Orkney Harbours Masterplan Phase 1, attached as Appendix 1 to this report, contains detailed proposals, summarised as follows: 4.2.1. Hatston Pier • The existing outer berth face would be extended by 300 metres, with the water depth the same as existing. • In the region of 7.5 hectares of additional land for harbour related operations through reclamation. • An ex-pipe fuel supply and storage facility (multi-type not just oil based) and the possibility of shore power for vessels. • Capital cost, including optimism bias of 30%, of £52.828 million. 4.2.2. Kirkwall Pier • 200 metres of new multi-purpose quayside to the north of the existing pier with a water depth of -6.5 metres chart datum (CD), creating layby berths for inter isles ferries, fishing vessels, fish farm service vessels and slightly larger cruise liners. • A waterfront development land (approximately 2.75 hectares) created through reclamation for a range of uses and/or facilities. • The marina would be partially re-built and doubled in size with 95 additional berths split between residents and visiting yachts and small motor vessels. • Capital cost, including optimism bias of 30%, of £39.927 million. Page 3. 4.2.3. Scapa Pier • The existing pier would be lengthened by approximately 100 metres and dredging would be undertaken to provide deeper water (from -5 metres CD to -7.5 metres CD), with the extension being angled south west and wider than the existing pier. • Through reclamation, an area adjacent at the shore end of the existing pier would be made for operational use, storage and/or parking. • Several berths for marine leisure and a small slipway would be incorporated – this may be a suitable location for vessels offering marine tours in and around Scapa Flow. • Capital cost, including optimism bias of 30%, of £15.187 million. 4.2.4. Scapa Deep Water Quay There is no deep-water pier infrastructure in Scapa Flow. This proposal comprises 300 metres of quayside with a water depth of -20 metres CD, a 75 metres wide approach quay with at least 5 hectares of landside area. The main purpose of this new facility would be to undertake any/multiple industry activity, with specific markets being opportunities in the offshore wind and oil and gas sectors. It is also proposed that a Liquified Natural Gas (LNG) storage and distribution hub and depot be located here. There are several leases for offshore wind areas earmarked for development around Orkney, with Orkney being a preferred location for construction and long- term operation and maintenance support. Capital cost, including optimism bias of 70%, of £115.673 million. 4.2.5. Stromness and Copland’s Dock • The marina to be expanded with an additional 12 berths which could be earmarked for resident, visitor or commercial use. • With an increasing number of cruise liners using Stromness – at anchor – a pontoon to be provided for use by tenders, which, similar to the one in Kirkwall, could be used by other vessels when not in use by cruise liner tenders. It is likely that this pontoon would have to be lifted out during winter months. • The number of fenders at Copland’s Dock to be increased which will enable smaller vessels to use this infrastructure. • Capital cost (excluding reclamation at Copland’s Dock), including optimism bias of 30%, of £0.884 million. 4.2.6. Lyness This brownfield site has previously been earmarked for a variety of operational activities – none of which have come to fruition. Recently the assembly of aquaculture infrastructure was carried out and this may be a suitable use for the site in the short/medium term. Longer term opportunities may present themselves from the renewable (wave and tide) sector and a service base for offshore wind sites. These would be dependent on size and draft of vessels requiring access to the pier, as well as clear intentions from the market. An initial step might be to create hard standing, approximately 3.5 hectares, providing a storage area. At present this does not include the ongoing oil remediation project for the area directly behind the quay Page 4. edge. The costs of this are subject to market interest and will be further developed as and when this is made. 4.3. Overall the Gross Value Added (GVA), as a direct result of the proposed masterplan, rises to £9.7 million per annum after 10 years, with an indirect and induced GVA of £5.0 million per annum in the 20 year Harbours Masterplan period, and remains around that level for the remainder of the Masterplan period. 4.4. The Orkney Harbours Masterplan Phase 1 proposals will create efficiency within existing operations, as well as enabling Orkney Harbours to attract more business and generate more revenue, thus ensuring financial stability for the longer term. It will ultimately safeguard and create employment opportunities in Orkney, at the same time as working towards a net-zero carbon footprint and ensuring minimal effect on the environment. 5. Consultation 5.1. An important and vital element of any Harbour Masterplan is to carry out full and meaningful discussions with stakeholders across a range of sectors. In the case of the Orkney Harbours Masterplan Phase 1, a number of face-to-face and telephone discussions were held to hear initial views on issues and constraints.
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