Perth Harbour future hangs in balance

A decision on whether to close Perth Harbour will be made next week.

Perth and Kinross Council officers say the harbour, which was established in Friarton Road in the late 1840s, is no longer viable.

They have urged councillors not to renew its five-year contract with operator CalMac when it ends on July 2 2023.

The report by Barbara Renton, executive director for communities, also calls for the council to sell the Fair Maid tug, arguing there are insufficient vessel movements in Perth to justify its retention.

The proposal has been criticised by local MSP Murdo Fraser (Conservative).

Conservative MSP Murdo Fraser — Murdo Fraser. Image: DC Thomson.

He said: “I would have thought that bringing goods in by ship to Perth Harbour is a form of low carbon transport and falls in line with reaching the required net zero targets.

“I believe the harbour should be developed.

“It would be a massive blow to the city of Perth and I would be very disappointed if a decision is taken to close the harbour.”

Councillors will decide the fate of the harbour and vessel at a full council meeting on Wednesday, February 8.

Here are the main arguments made by officers for the closure.

1. There aren’t enough ships arriving

There are 10 major ports in Scotland that deal with 97% of all freight. Perth Harbour is the smallest, handling 0.01% of this total.

The harbour is estimated to support 54 jobs in Perth and Kinross and contribute £3.9m annually to the economy.

At its peak, in 1990, the port managed more than 300 vessels per year.

This number has since plummeted to 21, leading to an operational deficit of £192,500 in the 2020-21 financial year.

In April 2021, officers put together a five-year business plan.

This calculated that, by 2025-26, ship numbers could have risen to 59 and the deficit cut to £131,000 through focusing on fishmeal and baryte.

But 120 ships would be needed just to break even.

In February 2019, Perth Harbour welcomed the largest vessel to dock seen in 10 years. Wilson Thames was around 90 metres in length.

And since then the situation has worsened.

The report blames external factors such as Covid-19, Brexit, the war in Ukraine, increased competition and market changes.

It also cites a lack of warehousing capacity and lower local demand due to changes in commercial contracts.

“The long-term downwards trend in shipping at Perth Harbour has been accelerated,” it said.

2. The site is limited

The situation is further exacerbated by limitations imposed by the tidal window at Perth, the report added.

Here, recurring natural silting at the basin entrance has been triggering cargo load restrictions.

3. Fair Maid is not successful

A further headache has been the Fair Maid tug, which was delivered to Perth Harbour in May 2007.

Until December 2022 it was chartered to Montrose Port Authority, which opted against renewing its contract.

Income from the boat for 2022-23 is estimated to be just £24,000.

“The Fair Maid is not needed at Perth Harbour to support operations most of the time,” the report said.

Fair Maid of Perth tug boat. Image: Perth Harbour.

“It has been used for checking aids to navigation and intervene in exceptional circumstances (eg facilitate basin entry of very long vessel).

“A new charterer will now need to be identified as otherwise there is little for the Fair Maid to do.

“In addition, the vessel needs regular maintenance and repairs to achieve tugboat certification.”

4. Jobs will not be lost completely

A 2021 study from Biggar Economics, commissioned by Calmac, evaluated the economic impact of Perth Harbour.

The port is estimated to support £3.9 million gross value added (GVA) and 54 jobs in Perth and Kinross.

Across Scotland, this impact grows to £5.5m GVA and 74 jobs.

These figures are based on 24 shipments carrying 33,000 tonnes of cargo in the 2020-21 financial year – a 25% increase in both shipments and cargo since 2017-18.

Over that period, the economic impact this supported in Perth and Kinross increased by 10%.

The report by Barbara Renton, executive director for communities, calls for the closure of the harbour.

But the council argued that users have simply shifted their modes of transport to road.

“The economic benefits arising from their activities would still be realised for the Perth and Kinross and Scottish economy, regardless of use of the harbour itself,” Barbara Renton‘s report said.

“The level of activities has not reduced because users have been able to use roads and other ports.”

5. The area could have an exciting new use

Without a commercial port there might be concerns that the vacant land will become derelict.

But officers believe there may be alternatives, including renewable energy production/storage.

There could also be the introduction of water-based leisure facilities such as sailing, boating and water sports.

This could provide complementary employment and “be consistent with Perth City Plan, promoting better use of the River Tay as a biodiversity and recreation resource.”