Last night (1st December) – members of the community councils surrounding the Cromarty Firth met with the Port Authority (the other communities without a border on the firth were excluded). It was explained to them why ship-to-ship oil transfers are so important to the port. CEO, Bob Buskie, told them that it is all tied in with their cruise ship business – phase 4 expansion of the port will create a new cruise ship berth and “reception centre”. This will cost around £25 million and although this is likely to be part grant-in-aid funded by the taxpayer, the port will need to borrow money to complete the funding package. The £500,000 a year from STS is essential to fund the loan interest repayments. They could not make a deal with the operators of Nigg jetty which is why it needs to be at sea.
A reasonable story on the face of it, but wait on…….STS business is not guaranteed – how can there be any certainty that it will generate £500K per annum? In the 2015 annual report we see a £2 million annual surplus plus an existing £6 million in loans to be paid back in the future. For an organisation that only turns over £7 million which will end up some £12 million in debt this paints a picture of a business that is over stretching itself with loans – surely this is a risky financial strategy – essentially gambling with the future of the port?
Remember the £500K generated by STS that is being quoted is turnover and not profit. What happens to the people employed at Nigg terminal? There will be no work for them out of this proposal.
If the Port need an alternative proposistion that turns over £500K per year and won’t destroy the environment and the hundreds of jobs that depend on it – we’ve got the very thing for them:
Cromarty Shop for Sale:
http://www.bruceandco.co.uk/business-for-sale?ref=45072
Only £60K, turnover £500K a year. Perfect – problem solved!
