A proposal to spend £12.7m in the next three years upgrading Campbeltown New Quay was approved by Argyll and Bute Council yesterday.

The funds will be used to expand the marine facilities at the New Quay, and make the necessary associated road improvements.

The design process, which is still at a very early stage, will now be advanced with a view to agreeing an outline design by the end of the year.

The proposal involves partially extending the existing New Quay to enable larger ships to use the harbour and provide a stronger structure for the anticipated increase in freight movements to and from Campbeltown harbour.

Argyll and Bute Council Leader Dick Walsh said: "This is a very exciting time for the Kintyre peninsula, which is rapidly becoming Scotland’s powerhouse in terms of investment in the renewables sector.

"It is widely recognised that this is a key sector of the local economy and a source of significant future sustainable economic growth.

-- Advertisement --

"We need to invest now in our infrastructure in order to unlock the full economic potential presented by the current and future development of both on- and off-shore renewable energy in the Argyll and Bute area."

The proposal agreed today will see the New Quay part-extended in order to accommodate F-type vessels (138m length and 6.8m draught), but ensure that its new depth will also accommodate the larger S-type vessels (168m length and 8m draught) to allow for future development.

It anticipates Argyll and Bute Council spending £1m in the current financial year, £6.036m in 2010/11 and £5.664m in 2011/12.

The funding will be broken down into: £4.5mfrom the piers and harbours capital allocation, £1m from the CHORD initiative, £5.1m anticipated from a European Regional Development Fund (ERDF) grant and £2.1m from prudential borrowing, funded through a proposed 4% increase in harbour dues at Campbeltown.

The Council also agreed to spend £3.651m upgrading Campbeltown Old Quay between 2011/12 and 2013/14, and a possible further £1.349m between 2014/15 and 2018/19.

"The fishing industry is a key part of the local economy. This investment will ensure that the local fishing fleet and other regular users have the use of a facility which is properly maintained and fit for purpose," Councillor Walsh said.

This project will safeguard 85 jobs and create a further 200 jobs in the construction side. It also proposes another 150 jobs will be created in research and development and a further 500 will be required in the construction phases.

(GK/JM)