6 December, 2006

A CALL to prepare a business plan for the port of Sullom Voe was made yesterday (Tuesday), after it emerged that tanker traffic at the port this year is less than expected.

For the current financial year the port had budgeted for 219 tanker movements (177 exporting Brent crude and 42 importing Schiehallion crude), but it now looks more likely that this will have to be adjusted to 201 movements (165 and 36).

Shetland Islands Council's finance director Graham Johnston yesterday confirmed that the harbour accounts were over budget by almost £400,000, half way through the current financial year.

While this was partly due to some payment problems between the council and BP for using the jetties at the oil terminal, the more worrying aspect was that the council was earning less as tanker numbers continue to drop, he said.

Local councillor and economic spokesman Drew Ratter said it was high time to start promoting the port of Sullom Voe to attract other business, as it should be regarded as the "jewel in the crown" of Shetland's industry.

"There is certainty that the trend at Sullom Voe is downward. This underlines the need for a serious long term business plan for the port of Sullom Voe as soon as possible, as the income side remains uncertain."

Tanker numbers have fallen from around 800 annually during peak oil production in the 80s to just above 200 a year in recent years.

The council, which runs the port, has recently restructured its tug and pilotage operation for tankers in a bid to save money.